Businesses that are part of multinational groups must comply with reporting requirements under Section 286 of the Income-tax Act, 1961. For the reporting accounting year April 1, 2024 to March 31, 2025, timely and accurate filing is crucial to avoid penalties.

What is Section 286 Reporting?

Section 286 deals with Country-by-Country (CbC) Reporting obligations for multinational enterprise (MNE) groups. It requires certain entities in India to furnish details of global income, taxes paid, and economic activity.

Who is Required to File?

The following entities resident in India may be required to file the report:

• Parent entity of an international group

• Alternate reporting entity designated by the group

• Constituent entity, in specific cases where the parent entity is not filing

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Key Information to be Reported

The report generally includes:

• Revenue (related and unrelated party)

• Profit before tax

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• Income tax paid and accrued

• Number of employees

• Tangible assets

Compliance and Due Dates

• Filing is done in Form 3CEAD as prescribed under Rule 10DB of the Income-tax Rules, 1962

• Due date is typically 12 months from the end of the reporting accounting year

• Non-compliance may attract penalties under Section 271GB

Relevant Legal References

• Section 286 of the Income-tax Act, 1961

• Rule 10DB of the Income-tax Rules, 1962

• CBDT Notification No. 88/2017 (CbC reporting framework)