The Central Board of Direct Taxes (CBDT) has introduced Form 173A to collect information from taxpayers claiming specified income-tax exemptions on interest and capital gains from government securities. The new reporting requirement has been prescribed under the Income-tax Rules, 2026.
According to a Ministry of Finance notification issued on October 19, the Income-tax (Seventh Amendment) Rules, 2026, require taxpayers seeking exemptions under entries 13D and 13E of Table in Schedule IV of the Income-tax Act, 2025, to submit the prescribed details through Form 173A.
The amended rules took effect from the date they were published in the Official Gazette.
What Information Must Be Submitted in Form 173A?
Form 173A requires taxpayers to provide personal and tax-related information, including their name, country of residence, address, Permanent Account Number (PAN), relevant tax year, email address and contact number.
The form also seeks the taxpayer’s tax identification number in their country of residence and Securities and Exchange Board of India (SEBI) registration number, wherever applicable.
In addition to investor details, taxpayers must report information about the government securities covered by their exemption claims. This includes the International Securities Identification Number (ISIN), type and tenor of each security, total holdings as of April 1, purchases made during the tax year, proceeds from securities sold and the total value of holdings as of March 31.
The form also requires disclosure of gross interest received or accrued during the tax year, along with capital gains earned from the investments.
Which Government Securities Are Covered?
The reporting requirement covers specified categories of government securities, including Treasury bills, fixed-rate bonds, floating-rate bonds and State Development Loans (SDLs), along with other eligible securities specified under the relevant provisions.
Taxpayers must also certify that the information submitted is accurate to the best of their knowledge and belief and complies with the applicable provisions of the Income-tax Act, 2025.
What the New Reporting Requirement Means for Taxpayers
Form 173A establishes a standardised process for reporting information related to eligible tax exemption claims on income earned from government securities.
However, the notification applies specifically to claims made under entries 13D and 13E of Table in Schedule IV. It does not create a universal tax exemption covering every investor or all income earned from government securities.
The amendment was published in the Gazette of India by the Department of Revenue under the Ministry of Finance, introducing the new reporting requirements under the Income-tax Rules, 2026.
Disclaimer: This article is intended for general informational purposes only and should not be treated as tax, legal or financial advice. The applicability of tax exemptions and reporting requirements may depend on individual circumstances and the relevant legal provisions. Taxpayers should consult the official notification or a qualified tax professional before making decisions regarding their tax filings.