Income Tax Form 21: Notification of Agricultural Extension Project under Section 47(1)(a)

Form 21 under Section 47(1)(a) of the Income-tax Act, 2025 is a notification issued by CBDT to formally recognize approved agricultural extension projects after examination of Form 20 under Rule 37. It serves to publish project approval in the Official Gazette, specify applicable tax years, and prescribe conditions, duration, and expenditure limits for availing tax benefits. Eligible projects must involve farmer training or guidance, have prior approval from the Ministry of Agriculture, and incur expenditure exceeding ₹25 lakh (excluding land/building). The notification is valid for up to three tax years and may be renewed upon timely application. Once issued, it cannot be revised, though it may be revoked for non-compliance, non-genuine activities, or violation of conditions. The assessee must adhere to all conditions, maintain records, and ensure proper utilization of funds. The framework enhances transparency, monitoring, and standardized implementation of tax incentives.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 21: Form for notification of agricultural extension project under section 47(1)(a) of Income Tax Act, 2025

Notification format for Agricultural Extension Project under Section 47(1)(a) of the Income-tax Act, 2025

Q1. What is Form 21?

Ans: Form 21 is an Income-tax notification form issued for an approved agricultural extension project under Section 47(1)(a) of the Income-tax Act, 2025, pursuant to approval granted under Rule 37.

Q2. What is the purpose of Form 21?

Ans: The primary purpose of Form 21 is to:

• Notify an approved agricultural extension project in the Official Gazette.
• Specify the Tax Year(s) for which the project is approved.
• Lay down the terms, conditions, duration, and expenditure limits applicable to the project.
• Enable tax benefits linked to approved agricultural extension projects under Section 47(1)(a).

Q3. Who issues Form 21?

Ans: Form 21 is issued by the Central Board of Direct Taxes (CBDT) after satisfaction that the project meets conditions prescribed under Rule 37.

Q4. When is Form 21 issued?

Ans: Form 21 is issued after Form 20 is examined and approved, and the project qualifies for notification under Section 47(1)(a) of the Income-tax Act, 2025.

Q5. What details are contained in Form 21? Ans: Form 21 contains:

• Name, address, and PAN of the applicant.
• Reference number and date of application.
• Title and purpose of the agricultural extension project.
• Date of commencement and duration of the project.
• Approved Tax Year(s).
• Estimated total project expenditure (excluding land/building).
• Charges, if any, proposed to be collected from beneficiaries.
• Specific conditions imposed on the project.

Q6. Which agricultural extension projects are eligible to be notified under Form 21? Ans: A project is eligible if:

• It is undertaken for training, education, and guidance of farmers.
• It has prior approval from the Ministry of Agriculture and Farmers Welfare.
• Expected expenditure (excluding land/building) exceeds ₹25 lakh.
• It complies with Rule 37 of the Income-tax Rules, 2025.

Q7. For how long is an agricultural extension project notified under Form 21?

Ans: The project may be notified for a period not exceeding three Tax Years, as specified in the notification.

Q8. Can the notification under Form 21 be extended?

Ans: Yes. The assessee may apply for renewal or extension of notification at least three months before expiry of the existing approval period.

Q9. What happens after Form 21 is issued? Ans: After issuance:

> The notification is published in the Official Gazette.

> Copies are sent to:

• • The applicant
  • Ministry of Agriculture and Farmers Welfare
  • Jurisdictional Commissioner of Income-tax
  • State Department of Agriculture
  • Agricultural Technology Management Agency (ATMA)

Q10. Can Form 21 be revised or withdrawn?

Ans: No. Once Form 21 is issued and published, it cannot be revised or withdrawn, except through revocation proceedings under Rule 37.

Q11. Under what circumstances can a Form 21 notification be revoked? Ans: Notification may be revoked if:

• The assessee ceases project activities.
• Project activities are not genuine.
• Conditions of approval are violated.
• Provisions of Rule 37 or Rule 38 are not complied with.

Q12. Is any compliance required after Form 21 is issued? Ans: The assessee must:

• Follow all conditions mentioned in Form 21.
• Ensure project funds are used only for approved purposes.
• Maintain records for monitoring and reporting.

Q13. Is any information in Form 21 auto-filled?

Ans: Yes. Some information may be auto-populated based on Form 20 and departmental records.

Q14. How is Form 21 authenticated and verified?

Ans: Form 21 is authenticated through:

• Authorized CBDT officer’s signature.
• Official notification in the Gazette of India.

Q15. When are UDIN and FRN applicable in relation to Form 21?

Ans:

• UDIN (Unique Document Identification Number): Where Chartered Accountant certification supports expenditure or audit reporting, UDIN must be generated and quoted.
• FRN (Firm Registration Number): If certification is issued by an audit firm, the Firm Registration Number (FRN) must be disclosed.
• DSC (Digital Signature Certificate): A valid DSC is required for electronic submission of related filings.

Q16. What are common reasons for rejection or cancellation of Form 21 notification?

Ans:

• Incomplete or misleading project information.
• Failure to meet expenditure thresholds.
• Non-compliance with Ministry approval conditions.
• Violation of notification conditions.

Q17. What is the objective of Form 21 under the Income-tax Act, 2025?

Ans: Form 21 ensures:

• Formal Government notification of approved agricultural extension projects.
• Transparent disclosure of project scope, duration, and financial limits.
• Effective monitoring and accountability.
• Standardized implementation of Section 47(1)(a) under the Income-tax Act, 2025.

Guidance Note on Income Tax Form 21: Form for notification of agricultural extension project under section 47(1)(a) of Income Tax Act, 2025

Guidance Note on Form 21

Form 21 is an Income-tax notification form issued for an approved Agricultural Extension Project under Section 47(1)(a) of the Income-tax Act, 2025, in accordance with Rule 37. This Form is issued by the Central Board of Direct Taxes (CBDT) to formally notify an approved agricultural extension project in the Official Gazette.

Purpose of Form 21

The primary purpose of Form 21 is to:

• Notify an approved Agricultural Extension Project under Section 47(1)(a) of the Income-tax Act, 2025.
• Specify the Tax Year(s) for which the project is approved.
• Record key project particulars, including title, purpose, duration, and approved expenditure.
• Lay down terms and conditions subject to which the project remains notified.
• Enable tax benefits linked to approved agricultural extension projects.

Filing / Issuance Requirements

• Who issues Form 21: Form 21 is issued by the CBDT, after an assessee’s application in Form 20 is examined and found eligible under Rule 37.
• When Form 21 is issued: Form 21 is issued when:
  • The project satisfies conditions under Rule 37, and
  • The Board approves notification under Section 47(1)(a) of the Income-tax Act, 2025.
• The notification is valid for a period not exceeding three Tax Years.

How Form 21 is authenticated

Form 21 is authenticated through:

• Signature of the authorized CBDT officer, and
• Publication in the Official Gazette.

Information Contained in Form 21

The Form contains the following key details:

• Particulars of the Applicant
  • Name
  • PAN
  • Address
  • Reference number of application
  • Date of application

• Details of the Agricultural Extension Project
  • Title of the project
  • Purpose of the project
  • Date of commencement
  • Duration in months
  • Approved Tax Year(s)
  • Total expected expenditure (excluding land/building)
  • Amount proposed to be charged from beneficiaries (if any)
  • Conditions subject to which the project is notified

Frequency and Validity Period

• Frequency: Form 21 is not filed by the assessee. It is issued once per approved project, or upon renewal of notification.
• Validity Period: Notification under Form 21 is valid for up to three Tax Years, unless extended or revoked.

Compliance Obligations After Notification

After issuance of Form 21, the assessee must:

• Comply with all conditions mentioned in the notification
• Ensure project activities remain genuine and aligned with approval
• Maintain relevant records and supporting documents
• Cooperate with monitoring or review by tax authorities

Renewal of Notification

An assessee may apply for renewal of project notification at least three months before expiry of the existing approval period, as prescribed under Rule 37.

Revocation of Notification

Notification under Form 21 may be revoked if:

• The assessee ceases project activities
• The project activities are not genuine
• Conditions of approval are violated
• Provisions of Rule 37 or related rules are not complied with

Revocation is carried out after giving the assessee an opportunity of being heard.

Communication of Notification

A copy of the issued Form 21 is communicated to:

• The applicant
• Ministry of Agriculture and Farmers Welfare
• Jurisdictional Commissioner of Income-tax
• Department of Agriculture of the concerned State
• Agricultural Technology Management Agency (ATMA) of the concerned District

UDIN, FRN and DSC Requirements

UDIN (Unique Document Identification Number): Where a Chartered Accountant certifies any supporting financial or audit documentation relating to the project, a UDIN must be generated and quoted.

FRN (Firm Registration Number): If certification or audit is issued by an audit firm, the Firm Registration Number (FRN) must be disclosed.

DSC (Digital Signature Certificate): A valid DSC is required where related filings, audit reports, or submissions are made electronically.

Key Points to Note

• Form 21 is a notification form, not an application form.
• It is issued only after approval of Form 20.
• Notification is valid for specified Tax Year(s) only.
• Projects must continue to meet Rule 37 eligibility conditions.
• Expected expenditure (excluding land/building) must exceed ₹25 lakh.
• Prior approval from the Ministry of Agriculture is mandatory.
• Use of “Tax Year” replaces earlier year terminology.

Outcome Details

• Project Recognition: Form 21 grants formal Government recognition to an approved agricultural extension project.
• Continuation or Cancellation
  • Projects performing satisfactorily may be renewed
  • Non-compliant projects may face revocation of notification

Challenges and Solutions

The revised Form 21 framework supports improved governance through:

• Standardized project disclosures
• Transparent conditions and monitoring
• Digitized authentication and audit trail
• Clear linkage between approval (Form 20) and notification (Form 21)

Common Changes Across Forms

• Assessment / Previous Year replaced with Tax Year
• Section and Rule references updated to Income-tax Act, 2025
• Enhanced digital verification and structured dis