New Delhi [India], October 20 (ANI): The Central Board of Direct Taxes (CBDT) has introduced a new reporting requirement for taxpayers seeking specified income-tax exemptions on interest and capital gains earned from government securities, through Form 173A under the Income-tax Rules, 2026.
According to a notification issued by the Ministry of Finance on October 19, the Income-tax (Seventh Amendment) Rules, 2026, require taxpayers claiming exemptions under Schedule IV, Table entries 13D and 13E, of the Income-tax Act, 2025, to furnish the prescribed information in Form 173A.
The amended rules came into force from the date of their publication in the Official Gazette.
The newly introduced form seeks details of the investor, including name, country of residence, address, Permanent Account Number (PAN), relevant tax year, email address and contact number. It also provides for disclosure of the investor's tax identification number in the country of residence and Securities and Exchange Board of India (SEBI) registration number, where applicable.
The form also requires detailed information on the government securities for which the exemption is being claimed.
Investors must disclose the International Securities Identification Number (ISIN), type and tenor of the securities, their total value as of April 1, purchases made during the tax year, proceeds from securities sold and their total value as of March 31.
Additionally, the form requires details of the gross interest received or accrued during the tax year and capital gains earned from the investments.
The categories of government securities covered in the form include Treasury bills, fixed-rate bonds, floating-rate bonds and State Development Loans (SDLs), along with other specified securities.
The notification also requires the taxpayer to certify that the information furnished is true to the best of their knowledge and belief and is in accordance with the relevant provisions of the Income-tax Act, 2025.
The prescribed form provides a standardised mechanism for collecting information relating to exemption claims on income from government securities.
The notification specifies that the requirements apply to claims under the identified provisions of Schedule IV and do not establish a blanket exemption for all investors or all income earned from government securities.
The details of the amendment were published in the Gazette of India by the Ministry of Finance's Department of Revenue. (ANI)
CBDT introduces Form 173A for tax exemption claims on government securities
