The Central Board of Direct Taxes has notified the Income-tax (Seventh Amendment) Rules, 2026, through Notification No. 137/2026, G.S.R. 901(E), dated 19 October 2026. The amendment inserts Rule 281A into the Income-tax Rules, 2026 and prescribes a new Form No. 173A.
Rule 281A requires information to be furnished in Form 173A for claiming the exemptions specified in Schedule IV, Table serial numbers 13D and 13E, of the Income-tax Act, 2025. These entries concern eligible institutional investors and the Bank for International Settlements in relation to interest and capital gains from government securities. The notified form implements an information-reporting requirement; it does not itself create a new exemption for all government-bond investors.
Part A of Form 173A calls for identifying information, including the claimant's name, country of residence, address, PAN, tax identification number, SEBI registration number as FPI/FII where applicable, the relevant tax year and contact details. The notification makes the TIN and SEBI registration fields optional for the Bank for International Settlements.
Part B seeks government-security details, including ISIN, security type and tenor, opening and closing values, purchases and sale consideration, gross interest received or accrued, and capital gains during the tax year. Types listed include Treasury Bills, fixed-rate bonds, floating-rate bonds and State Development Loans. Amounts are to be stated in Indian rupees unless otherwise provided. The form includes a declaration signed by the principal officer.
The rules expressly commence on the date of their publication in the Official Gazette, 19 October 2026. The notification does not prescribe a separate universal filing deadline or specify an electronic filing route. Eligible claimants and their tax advisers should review the form and maintain investment and income records required to support the exemption claim.