Furnishing of report in respect of international group
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 511(1) of Income Tax Act 2025
511(1) Every constituent entity resident in India, shall, if it is constituent of an international group, the parent entity of which is not resident in India, notify the prescribed income-tax authority in the form and manner, on or before such date, as prescribed,—
- 511(1)(a) whether it is the alternate reporting entity of the international group; or
- 511(1)(b) the details of the parent entity or the alternate reporting entity, if any, of the international group, and the country or territory of which the said entities are resident.
Section 511(2) of Income Tax Act 2025
511(2) Every parent entity or the alternate reporting entity, resident in India, shall, for every reporting accounting year, in respect of the international group of which it is a constituent, furnish a report, to the prescribed income-tax authority within twelve months from the end of the said reporting accounting year, in such form and manner, as prescribed.
Section 511(3) of Income Tax Act 2025
511(3) In sub-sections (2) and (4), the report in respect of an international group shall include—
- 511(3)(a) the aggregate information in respect of the amount of revenue, profit or loss before income-tax, amount of income-tax paid, amount of income-tax accrued, stated capital, accumulated earnings, number of employees and tangible assets not being cash or cash equivalents, with regard to each country or territory in which the group operates;
- 511(3)(b) the details of each constituent entity of the group including the country or territory in which such constituent entity is incorporated or organised or established and the country or territory where it is resident;
- 511(3)(c) the nature and details of the main business activity or activities of each constituent entity; and
- 511(3)(d) any other information, as prescribed.
Section 511(4) of Income Tax Act 2025
511(4) A constituent entity of an international group, resident in India, other than the entity referred to in sub-section (2), shall furnish the report referred to in the said sub-section, in respect of the international group for a reporting accounting year within the period, as prescribed, if the parent entity is resident of a country or territory,—
- 511(4)(a) where the parent entity is not obligated to file the report of the nature referred to in the said sub-section;
- 511(4)(b) with which India does not have an agreement providing for exchange of the report of the nature referred to in the said sub-section;
- 511(4)(c) where there has been a systemic failure and such failure has been intimated by the prescribed income-tax authority to such constituent entity.
Section 511(5) of Income Tax Act 2025
511(5) If there are more than one such constituent entities of the group, resident in India, the report as mentioned in sub-section (4) shall be furnished by any one constituent entity, if—
- 511(5)(a) the international group has designated such entity to furnish the report as per sub-section (2) on behalf of all the constituent entities resident in India; and
- 511(5)(b) the information has been conveyed in writing on behalf of the group to the prescribed income-tax authority.
Section 511(6) of Income Tax Act 2025
511(6) The provisions of sub-sections (4) and (5) shall not apply, if—
- 511(6)(a) an alternate reporting entity of the international group has furnished a report of the nature referred to in sub-section (2), with the tax authority of the country or territory in which such entity is resident, on or before the date specified by that country or territory; and
- 511(6)(b) the following conditions are satisfied:—
- (i) the said report is required to be furnished under any law in force in the said country or territory;
- (ii) the said country or territory has entered into an agreement with India providing for exchange of the said report;
- (iii) the prescribed income-tax authority has not conveyed any systemic failure in respect of the said country or territory to any constituent entity of the group that is resident in India;
- (iv) the said country or territory has been informed in writing by the constituent entity that it is the alternate reporting entity on behalf of the international group; and
- (v) the prescribed income-tax authority has been informed by the entity referred to in sub-sections (4) and (5) as per sub-section (1).
Section 511(7) of Income Tax Act 2025
511(7) The prescribed income-tax authority may, for determining the accuracy of the report furnished by any reporting entity, issue notice in writing, requiring the entity to produce such information and document as specified in the notice within thirty days of the date of receipt of the notice and such period may be extended by up to an additional thirty days upon application by the entity.
Section 511(8) of Income Tax Act 2025
511(8) The provisions of this section shall not apply to an international group for an accounting year, if the total consolidated group revenue, as per the consolidated financial statement for the accounting year preceding such accounting year, does not exceed the prescribed amount.
Section 511(9) of Income Tax Act 2025
511(9) The provisions of this section shall be applied as per such guidelines and subject to such conditions, as prescribed.
Section 511(10) of Income Tax Act 2025
511(10) In this section,—
- 511(10)(a) “accounting year” means,—
- (i) a tax year, in a case where the parent entity is resident in India; or
- (ii) an annual accounting period, with respect to which the parent entity of the international group prepares its financial statements under any law in force or the applicable accounting standards of the country or territory of which such entity is resident, in any other case;
- 511(10)(b) “agreement” means a combination of all of the following agreements:—
- (i) an agreement entered into under section 159(1) or (2); and
- (ii) an agreement for exchange of the report referred to in sub-section (2) and notified by the Central Government;
- 511(10)(c) “alternate reporting entity” means any constituent entity of the international group that has been designated by such group, in the place of the parent entity, to furnish the report of the nature referred to in sub-section (2) in the country or territory in which the said constituent entity is resident on behalf of such group;
- 511(10)(d) “constituent entity” means—
- (i) any separate entity of an international group that is included in the consolidated financial statement of the said group for financial reporting purposes, or may be so included for the said purpose, if the equity share of any entity of the international group were to be listed on a stock exchange;
- (ii) any such entity that is excluded from the consolidated financial statement of the international group solely on the basis of size or materiality; or
- (iii) any permanent establishment of any separate business entity of the international group included in sub-clause (i) or (ii), if such business unit prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes;
- 511(10)(e) “group” includes a parent entity and all the entities in respect of which, for the reason of ownership or control, a consolidated financial statement for financial reporting purposes—
- (i) is required to be prepared under any law in force or the accounting standards of the country or territory of which the parent entity is resident; or
- (ii) would have been required to be prepared, had the equity shares of any of the enterprises were listed on a stock exchange in the country or territory of which the parent entity is resident;
- 511(10)(f) “consolidated financial statement” means the financial statement of an international group in which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent entities are presented as those of a single economic entity;
- 511(10)(g) “international group” means any group that includes—
- (i) two or more enterprises which are resident of different countries or territories; or
- (ii) an enterprise, being a resident of one country or territory, which carries on any business through a permanent establishment in other countries or territories;
- 511(10)(h) “parent entity” means a constituent entity, of an international group holding, directly or indirectly, an interest in one or more of the other constituent entities of the international group, such that—
- (i) it is required to prepare a consolidated financial statement under any law in force or the accounting standards of the country or territory of which the entity is resident; or
- (ii) it would have been required to prepare a consolidated financial statement had the equity shares of any of the enterprises were listed on a stock exchange,
- and, there is no other constituent entity of such group which, due to ownership of any interest, directly or indirectly, in the first mentioned constituent entity, is required to prepare a consolidated financial statement, under the circumstances referred to in sub-clause (i) or (ii), that includes the separate financial statement of the first mentioned constituent entity;
- 511(10)(i) “permanent establishment” shall have the meaning assigned to it in section 173(c);
- 511(10)(j) “reporting accounting year” means the accounting year in respect of which the financial and operational results are required to be reflected in the report referred to in sub-sections (2), (4) and (5);
- 511(10)(k) “reporting entity” means the constituent entity including the parent entity or the alternate reporting entity, that is required to furnish a report of the nature referred to in sub-section (2);
- 511(10)(l) “systemic failure” with respect to a country or territory means that the country or territory has an agreement with India providing for exchange of report of the nature referred to in sub-section (2), but—
- (i) in violation of the said agreement, it has suspended automatic exchange; or
- (ii) has persistently failed to automatically provide to India the report in its possession in respect of any international group having a constituent entity resident in India.
FAQs on Section 511 of Income Tax Act, 2025
Who needs to report?
| Case | Responsibility |
|---|---|
| Indian constituent entity, Parent outside India | Notify prescribed authority about parent or alternate reporting entity (ARE) |
| Parent or ARE is resident in India | File CbC Report in India within 12 months of end of reporting year |
| Parent’s country has no CbC rules, no exchange agreement, or systemic failure | Indian constituent entity must file the CbC report |
| Multiple Indian entities | One designated Indian entity can file on behalf of all |
| ARE in foreign country filed CbC report & valid exchange exists | Indian entities need not file again |
Timeline
| Requirement | Due Date |
|---|---|
| Notification by Indian entity | As prescribed |
| CbC Report Filing | Within 12 months from the end of reporting year |
| Notice for additional info by authority | Reply within 30 days (extendable by 30 more) |
1. Who is required to furnish information under Section 511(1)?
Every constituent entity resident in India, which is part of an international group whose parent entity is not resident in India, must notify the prescribed income-tax authority about:
- Whether it is the alternate reporting entity; or
- The details of the parent entity or alternate reporting entity and its country of residence.
2. Who is required to furnish the Country-by-Country (CbC) Report under Section 511(2)?
The following entities must file the CbC report:
- Parent entity or
- Alternate reporting entity if they are resident in India, for every reporting accounting year, within 12 months from the end of the reporting accounting year.
3. What information should be included in the report?
The report must include, for each country or territory where the group operates:
- Revenue, profit/loss before tax, taxes paid & accrued
- Stated capital, accumulated earnings, tangible assets
- Number of employees
- Details of each constituent entity and its main business activities
- Any other prescribed information
4. When does a constituent entity resident in India have to file the report under Section 511(4)?
If the parent entity is resident in a country:
- That does not require CbC reporting,
- Has no agreement with India for CbC exchange,
- Has a systemic failure (e.g., stops automatic exchange), then the Indian constituent entity must file the CbC report in India.
5. Can one entity file on behalf of all Indian entities in the group?
Yes, under Section 511(5), if there are multiple constituent entities in India, one may be designated to file the report on behalf of all, provided:
- It is formally designated by the international group; and
- The designation is communicated to the income-tax authority.
6. When is a constituent entity exempted from reporting under Section 511(4) and (5)?
If the group’s alternate reporting entity has already filed the CbC report in its country and:
- That country has a valid exchange agreement with India;
- There is no systemic failure;
- Proper notification has been given to Indian authorities, then the Indian constituent entity is exempted.
7. What is a “systemic failure”?
A situation where:
- The foreign country suspends automatic exchange of CbC reports; or
- Consistently fails to provide reports to India despite having an agreement.
8. Is there a minimum revenue threshold for applicability?
Yes, as per Section 511(8), if the total consolidated revenue of the international group is below the prescribed limit, this section will not apply for that accounting year.
9. What is the timeline for furnishing the report?
Notification under Section 511(1) — timeline will be prescribed by rules.
- Report under Section 511(2), (4) or (5) — within 12 months from the end of the reporting accounting year.
10. Can the income-tax authority seek additional information?
Yes, under Section 511(7), the authority may issue a notice asking for additional information or documents to verify the report. The entity must respond within 30 days, extendable by another 30 days on application.
11. What is meant by “International Group”?
A group is considered international if:
- It has two or more enterprises resident in different countries; or
- It operates in other countries through a permanent establishment.
12. Who is an “Alternate Reporting Entity”?
A constituent entity, other than the parent, designated to file the CbC report on behalf of the group.
13. What is a “Reporting Accounting Year”?
The financial year for which the CbC report is to be filed.
