Income Tax Form 19 – Notification Application for Semiconductor Fabrication Unit – Section 46

Form 19 is a statutory application under section 46 of the Income-tax Act, 2025 for obtaining notification of a semiconductor wafer fabrication manufacturing unit as a specified business, which is essential for claiming tax benefits on eligible expenditure. It must be filed by assessees engaged in or intending to undertake such manufacturing activities. The form requires detailed information on the assessee, the specified business, and the proposed unit, along with confirmation of compliance with Rule 36 conditions such as exclusive manufacturing activity, approval under the Modified Special Incentive Package Scheme, commencement on or after 1 April 2014, and location of all facilities in India. The application is filed electronically with supporting documents and is subject to scrutiny by authorities. Incorrect information may lead to denial or withdrawal of benefits. Upon approval, notification is granted, enabling tax incentives and supporting domestic semiconductor manufacturing while ensuring strict statutory compliance.

FAQ’s pertaining to Income Tax Form 19 – Application for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 46 of Income Tax Act, 2025

Application for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 46 of the Act

 Q1. What is Form 19?

Answer:

Form 19 is prescribed for making an application for notification of a semiconductor wafer fabrication manufacturing unit as a specified business under section 46 of the Income-tax Act, 2025, for availing the tax benefits provided thereunder.

Q2. Who is required to file Form 19?

Answer:

Form 19 is required to be filed by an assessee who is carrying on or proposes to carry on the business of manufacturing semiconductor wafer fabrications and seeks notification of such unit as a specified business under section 46 of the Act.

Q3. Is filing of Form 19 mandatory for claiming benefits under section 46?

Answer:

Yes. Notification of the semiconductor wafer fabrication manufacturing unit through Form 19 is mandatory for claiming benefits available to specified businesses under section 46 of the Income-tax Act, 2025.

Q4. What are the main parts of Form 19?

Answer:

Form 19 consists of the following parts:

• Particulars of the assessee,
• Particulars of the specified business,
• Details of the proposed unit,
• Fulfilment of prescribed conditions, and
• Declaration by the applicant.

Q5. What basic details of the assessee are required to be furnished in Form 19?

Answer:

The assessee is required to furnish:

• Name and address,
• Permanent Account Number (PAN),
• Status and residential status, and
• Email address and contact number.

Q6. What details relating to the specified business are required?

Answer:

The applicant is required to provide:

• Name and address of the specified business,
• Name of the semiconductor wafer fabrication manufacturing unit (if any), and
• Complete address of the unit.

Q7. What details of commencement of operations are required to be furnished?

Answer:

The applicant must indicate:

• Whether operations of the unit have commenced, and
• If commenced, the actual date of commencement, or
• If not commenced, the expected date of commencement of operations.

Q8. What conditions are required to be fulfilled under rule 36?

Answer:

The applicant is required to confirm fulfilment of the following conditions:

• The unit is exclusively for manufacture of semiconductor wafer fabrications,
• The unit has been approved by the competent authority on the recommendations of the Appraisal Committee under the Modified Special Incentive Package Scheme,
• The date of commencement of operations is on or after 1 April 2014, and
• All manufacturing facilities of the unit are located in India.

Q9. What details are required if the unit has been approved under the Modified Special Incentive Package Scheme?

Answer:

Where approval has been granted, the applicant must furnish:

• The date of approval, and
• The order number of such approval issued by the competent authority.

Q10. Is it mandatory that the unit should be located in India?

Answer:

Yes. One of the mandatory conditions is that all manufacturing facilities of the semiconductor wafer fabrication unit must be located in India.

Q11. Is a declaration required to be furnished in Form 19?

Answer:

Yes. The applicant is required to furnish a declaration undertaking to continue to operate the unit during the period in accordance with the provisions of section 46 of the Act and certifying the correctness of the information furnished.

Q12. Who is authorised to sign and verify Form 19?

Answer:

Form 19 shall be signed and verified by the applicant or an authorised signatory, mentioning the name and designation.

Q13. Is any information in Form 19 pre-filled?

Answer:

Yes. Certain information in the particulars of the assessee may be pre-filled based on records available with the Income-tax Department. However, the applicant is responsible for ensuring accuracy of all details furnished.

Q14. In what currency should amounts be reported in Form 19?

Answer:

All monetary amounts should be reported in Indian Rupees (₹) unless otherwise specified.

Q15. What are the consequences of furnishing incorrect or false information in Form 19?

Answer:

Furnishing incorrect or false information may result in denial or withdrawal of notification under section 46 and may also attract action under other applicable provisions of the Income-tax Act, 2025.

Q16. Why is Form 19 important?

Answer:

Form 19 enables:

• Statutory notification of semiconductor wafer fabrication units as specified businesses,
• Verification of compliance with prescribed policy and statutory conditions, and
• Grant of tax incentives aimed at promoting domestic semiconductor manufacturing.

Guidance Note pertaining to Income Tax Form 19 – Application for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 46 of Income Tax Act, 2025

Application for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 46 of the Act

 Purpose

Form No. 19 is prescribed for making an application for notification of a semiconductor wafer fabrication manufacturing unit as a specified business under section 46 of the Act.

Notification of the unit as a specified business enables the applicant to avail the tax benefits provided under section 46 in respect of eligible expenditure incurred for such business.

The form captures information relating to the applicant, the specified business and the semiconductor wafer fabrication manufacturing unit, and facilitates verification of compliance with the prescribed statutory and policy conditions.

Who Should File

Form No. 19 is required to be furnished by an assessee who is carrying on or proposes to carry on the business of manufacturing semiconductor wafer fabrications and seeks notification of such unit as a specified business under section 46 of the Act.

Filing of the form is mandatory for making an application for notification of the unit for the purposes of claiming benefits available to specified businesses under section 46.

Structure of Form

Form No. 19 consists of the following main parts:

1. Particulars of the assessee

2. Particulars of the specified business

3. Details of proposed unit

4. Fulfilment of conditions

5. Declaration

These sections capture the information necessary for examining the eligibility of the semiconductor wafer fabrication manufacturing unit for notification as a specified business.

What are the documents required to file the Form

The following documents may be required to be furnished along with Form No. 19:

1. Copy of approval granted by the competent authority under the Modified Special Incentive Package Scheme (MSIPS) on the recommendation of the Appraisal Committee.

2. Order number and date of approval issued by the competent authority under the above scheme.

These documents enable verification of the eligibility of the semiconductor wafer fabrication manufacturing unit for notification under section 46.

What is the process flow of filing Form

The process flow broadly involves the following steps:

1. The applicant prepares Form No. 19 by furnishing the required information relating to the assessee, the specified business and the semiconductor wafer fabrication manufacturing unit.

2. Relevant supporting documents relating to approval of the unit under the Modified Special Incentive Package Scheme are attached where applicable.

3. The completed form is furnished electronically through the income-tax e-filing portal in the manner prescribed.

4. The application is examined by the Income-tax Department to verify compliance with the provisions of section 46 and the conditions prescribed under rule 36.

5. Based on such examination, the competent authority may grant notification of the semiconductor wafer fabrication manufacturing unit as a specified business under section 46.

Outcome of Processed Form

Upon processing of the application:

1. If the prescribed conditions are satisfied, the semiconductor wafer fabrication manufacturing unit may be notified as a specified business under section 46.

2. Upon such notification, the applicant may claim the tax benefits available under section 46 in respect of eligible expenditure incurred for the specified business.

3. Where the conditions prescribed under the Act or rules are not fulfilled, the application may not be approved.

Common Changes made across Forms

1. To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address, PAN and Aadhaar number have been separated into different boxes.

2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

3. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.

4. Currency symbol “Rs.” has been replaced with “₹”.