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CBDT notifies new form for tax exemption claims on govt securities
The CBDT has notified a new form for tax exemption claims on government securities.
Key points
- Form 173A requires foreign institutional investors and the Bank for International Settlements to disclose security holdings and income.
- The exemptions cover interest income from government securities and capital gains from their sale, exchange, or transfer.
- Eligible taxpayers must provide details including PAN, Sebi registration numbers, and transaction-level data for securities.
Why it matters. This new requirement establishes the specific disclosure process that foreign institutional investors and the BIS must follow to claim tax exemptions on government securities.
The Central Board of Direct Taxes has prescribed a new form for claiming income-tax exemption on interest income and capital gains from government securities, according to a government notification. The CBDT notified the Income-tax (Seventh Amendment) Rules, 2026, on October 19, introducing Form 173A under entries 13D and 13E of Schedule IV of the Income-tax Act, 2025. The exemptions apply to foreign institutional investors and the Bank for International Settlements, and are not available to ordinary investors.
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CBDT notifies new form for tax exemption claims on govt securities
The new Form 173A requires eligible foreign investors and BIS to disclose security holdings, interest income and capital gains to claim exemptions under the Income-tax Act, 2025 The Central Board of Direct Taxes (CBDT) has prescribed a new form for furnishing information to claim income-tax exemption on interest income and capital gains from government securities, according to a government notification. The CBDT notified the Income-tax (Seventh Amendment) Rules, 2026, on October 19. The rules introduce Form 173A, which must be furnished to claim tax exemption under entries 13D and 13E of Schedule IV of the Income-tax Act, 2025. The exemptions cover interest income from government securities and capital gains arising from their sale, exchange or transfer. Entry 13D applies to foreign institutional investors (FIIs), while entry 13E covers the Bank for International Settlements (BIS). The exemptions are not available to ordinary investors. The form requires taxpayers to furnish basic details, including their name, country of residence, address, Permanent Account Number (PAN), tax identification number in the country of residence, Securities and Exchange Board of India (Sebi) registration number as a foreign portfolio investor (FPI) or foreign institutional investor (FII), tax year, email address and contact number. It also seeks transaction-level details of government securities, .
CBDT notifies Form 173A for tax exemption claims on govt securities
The Central Board of Direct Taxes (CBDT) has notified a new form for claiming income-tax exemption on government securities. Form 173A requires eligible foreign institutional investors and the Bank for International Settlements to disclose security holdings, interest income and capital gains to claim exemptions under the Income-tax Act, 2025. The CBDT notified the Income-tax (Seventh Amendment) Rules, 2026, on October 19. The new form is part of the government's effort to streamline tax exemption claims for foreign investors in government securities.