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RULE 331 INCOME-TAX RULES 2026

Procedure for approval under paragraph (1)(z)(i) and (ii) of Schedule XV to the Act.

331. (1) The Central Board of Direct Taxes, before granting approval to a public company under paragraph 1(z)(i) of Schedule XV to the Act or to a Mutual Fund under paragraph 1(z)(ii), of the said Schedule shall satisfy itself that for the entity mentioned in column B in the following Table, the application is made in the Form specified in column C with documents as mentioned in column D attached alongwith, and the application is filed within the time limit prescribed in column E thereof:

TABLE

Sl.No

Entity

Application Form

Documents to be attached with the application

Time limit for filing application

Public company

Form No. 189

(a)		Copy of certificate of incorporation under the Companies Act, 2013 (18 of 2013); and
(b)		audited balance sheet, and profit and loss account, for three tax years immediately preceding the tax year in which the application is made, or for the period of its existence, whichever is lesser.

Three months before “the eligible issue of capital,” as referred to in paragraph 6(i) of Schedule XV to the Act.

Mutual fund

Form No. 190.

(a)		Copy of certificate of registration issued by the Securities and Exchange Board of India; and
(b)		audited balance sheet, and profit and loss account, for three tax years immediately preceding the tax year in which the application is made, or for the period of its existence, whichever is lesser.

Three months before the public issue.

(2) The Board shall pass an order approving or denying the application, but any decision denying approval shall not be made without providing the applicant a reasonable opportunity of being heard.

(3) Every applicant shall invest all its total paid-up capital, raised through equity issue or debentures, in the following manner:-

(a)

at least 25% of the capital raised shall be invested—

(i)		in the infrastructure facility, in the case of a public company, and
(ii)		in the eligible issue of capital of any company referred to in paragraph (6)(i), of Schedule XV to the Act in the case of a Mutual Fund;

(b)		such investment shall be made before the end of one year from the date of approval of the Board; and
(c)		the rest of the capital shall be invested in like manner within three years from the date of approval.

(4) Every applicant shall submit a certificate from an accountant, as defined in section 515(3)(b), specifying the amount invested in each tax year, from the date of approval of the Board.

(5) The Board shall have the power to withdraw the approval granted under sub-rule (2), if such applicant-

(a)		fails to make investments as per conditions mentioned in sub-rule (3); or
(b)		fails to file the certificate referred to in sub-rule (4).