India prescribes Form 173A for government-securities exemption claims

A prescribed information requirement

The Income-tax (Seventh Amendment) Rules, 2026 insert Rule 281A and Form 173A into the Income-tax Rules, 2026. Claimants under Schedule IV entries 13D and 13E must furnish the prescribed information. The notification takes effect on Gazette publication; its text does not specify a calendar filing deadline or submission channel.^[1]

The underlying provisions are in the Income-tax Act, 2025, as amended by section 4 of the Taxation and Other Laws (Amendment) Act, 2026. They address government-security interest and capital gains for the statutory Foreign Institutional Investor class and the Bank for International Settlements respectively, subject to prescribed information. Note 4 supplies the relevant definitions by reference. The October form does not itself establish a claimant’s eligibility.^[2]

Connect claimant and security records

Part A collects identity, residence, PAN, foreign tax identification, FPI/FII registration and tax-year details. Part B requests security-level identifiers, type and tenor, opening and closing values, purchases, sale consideration, gross interest and capital gains. The notes require rupee amounts unless otherwise provided and make the foreign TIN and SEBI-registration fields optional for BIS.^[1]

Group tax teams should connect the claimant’s statutory category and claimed income to the security records before preparing the form. Neither an Indian investment nor a country match demonstrates eligibility. The requirement should be tracked separately from any return deadline or portal instruction, neither of which is supplied by this notification.^[1][2]