CBDT Issues Corrigendum to ITR-3 and ITR-5 Forms; Adds Sikkim to Schedule 80-IE for Section 80-IE Deductions

🗓️ Date: May 30, 2025 | ✍️ By: Aaerm Law Associates
📢 Category: CBDT Notification – 2025

🔍 Overview of the Update

The Central Board of Direct Taxes (CBDT) has released two important corrigenda via Notifications No. 50/2025 and 51/2025, dated May 29, 2025. These correct and expand on previous notifications 279(E) and 286(E), issued on April 30 and May 1, respectively.

The latest amendments revise Schedule 80-IE in ITR-3 and ITR-5 income tax forms. Most notably, they add a new item labeled “ah” for the state of Sikkim, placed directly after Tripura’s listing (item “ag”).

📌 What Has Changed?

✅ Inclusion of Sikkim in Schedule 80-IE

  • Sikkim now has two designated industrial undertakings: ah1 and ah2.
  • This update brings Sikkim into parity with other North-Eastern states such as:
    • Assam
    • Arunachal Pradesh
    • Manipur
    • Mizoram
    • Meghalaya
    • Nagaland
    • Tripura

Each of these states already features two qualified undertakings for Section 80-IE deductions.

📄 Why It Matters: Section 80-IE Deductions

Section 80-IE of the Income Tax Act, 1961 offers tax benefits to certain industrial undertakings in North-Eastern India. These deductions are crucial for fostering regional economic development.

To claim the deduction, taxpayers must also submit Form 10CCB, which validates the undertaking’s eligibility.

💼 Impact on Taxpayers in Sikkim

This amendment provides greater clarity for businesses operating in Sikkim. Until now, there was uncertainty about eligibility for Section 80-IE deductions in the state.

Now:

  • Eligible businesses in Sikkim can file deductions just like those in other NE states.
  • They must submit Form 10CCB for each qualifying undertaking—ah1 and/or ah2.
  • It simplifies compliance and boosts confidence in tax reporting procedures.

📚 Importance for Tax Professionals

Tax professionals and chartered accountants should take note of this update. Here’s why:

  1. System Updates Required: Ensure all internal tax software reflects the inclusion of item “ah” for Sikkim.
  2. Client Awareness: Inform clients based in or investing in Sikkim about their eligibility.
  3. Documentation Readiness: Prepare and verify accurate Form 10CCB filings for each undertaking.

This change encourages smooth compliance for assessment year 2025–26.

⚖️ Consistency Across North-Eastern States

This corrigendum ensures uniformity in how deductions under Section 80-IE are structured for each North-Eastern state. It strengthens the government’s agenda of balanced industrial development in remote regions.

Moreover:

  • It eliminates ambiguity for tax filers in Sikkim.
  • It reinforces consistency in the structure of Schedules in ITR forms.
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