Form 173 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 20, 2026

Form 173 Income Tax Rules 2026 pdf download and Key points

FORM NO. 173
[See rule 276]
Statement to be furnished by an eligible investment fund to the Assessing Officer under section 9(12) [Schedule I: Paragraph 1(4)]

Under the new Income-tax Rules, 2026, Form No. 173 replaces the old Form 3CEK. It is governed by Section 9(12) & Schedule I of the Income-tax Act, 2025, and Rule 276 of the Income-tax Rules, 2026.

Here are all the key points regarding Form No. 173:

1. Purpose of the Form Form 173 is a statement providing details that enable Assessing Officers to verify whether eligibility conditions have been fulfilled by an investment fund. Its primary purpose is to allow the fund to officially claim that its activities do not constitute a “business connection in India” under section 9(12) of the Act.

2. Applicability (Who Should File) It must be filed by every eligible investment fund, specifically by the fund manager or a designated person acting on behalf of the fund.

3. Frequency and Due Dates

Frequency: The form must be filed once in a tax year.
Due Date: It must be submitted within 90 days from the end of the tax year.

4. Mode of Filing and Process Flow

Online Only: Form 173 can only be submitted electronically through the Income Tax Department’s e-Filing portal.
Authentication: The person authorized to sign and verify the form must register their Digital Signature Certificate (DSC) and digitally sign the statement.
No Edits Allowed: Once the form is submitted and an acknowledgment is generated, it cannot be edited. Taxpayers must ensure details are correct before submission.
PAN is Mandatory: The form cannot be submitted without a valid Permanent Account Number (PAN).
No Tax Proof Needed: Because this form applies where income is not chargeable in India owing to “no business connection,” it does not require any proof of tax payment.

5. Structure of the Form The form is structured into two main parts:

Part A: A modified standard template designed to capture unique details of investment funds not located in India, including communication addresses, email, phone numbers, country of residence, and the Tax Identification Number (TIN) of the fund in its residence country.
Part B: Captures the other relevant information specific to the fund’s operations and compliance.
Verification: A mandatory verification statement where the authorized signatory affirms the truthfulness of the provided information.

6. Mandatory Documents Required To successfully file Form 173, the following documents may need to be gathered and attached:

Communication addresses, emails, phone numbers of the fund, along with the TIN of its country of residence.
Contact details of representatives in India.
The approval order of the CBDT for the fund, if applicable.
SEBI Registrations of the Fund Manager(s).
Financial statements that summarize the profit and loss of the investments made in India.
Contracts specifying the remuneration payable to the fund manager(s).

7. Outcomes and Consequences of Non-Compliance

Successful Outcome: The fund successfully claims that its activities do not constitute a business connection in India, provided conditions are met. The Assessing Officer verifies the form, and in the case of approved funds, can send feedback to the tax board if conditions are found unfulfilled.
Failure of Conditions: If conditions are not fulfilled, the fund will be subjected to tax under the regular provisions of the Act and must file the necessary income returns.
Penalties: Failure to file Form 173 can lead to severe consequences, including a penalty under Section 456 of the Income-tax Act, 2025, cancellation of the fund’s approval, and other proceedings for the assessment of income.

Form 173 Income Tax Rules 2026 pdf download and Key points

Form 173 Income Tax Rules 2026 pdf download and Key points

Form 173 Income Tax Rules 2026 pdf download

Form No.173– Frequently Asked Questions

Guidance Note on Form 173