Form 174 Income Tax Rules 2026 pdf download and Key points

Form 174 Income Tax Rules 2026 pdf download and Key points

FORM NO. 174
[See rule 282(2)]
Application for notification under Schedule V [Table: Sl. No.7.Note 5(a)(iii)(D)]
(Pension Fund)

Purpose of Form 174

The primary objective of filing Form 174 is to claim 100% tax exemption under Schedule V of the Income Tax Act, 2025. This exemption applies to:

• Dividends

• Interest

• Capital Gains arising from investments made in India (debt, share capital, or units).

• Any other sum referred to in Section 92(2)(k) of the Act.

2. Eligibility (Who can file?)

This form is specifically for a Pension Fund that:

• Is specified/notified by the Central Government.

• Fulfills the conditions mentioned in such notification.

• Meets additional prescribed conditions under the new 2026 Rules.

3. Structure of the Form

Form 174 is divided into four distinct panels on the e-filing portal:

• Part A (Particulars): Detailed information about the Pension Fund, including its legal status, country of residence, and PAN.

• Part B (Certification): A formal declaration that the fund meets the qualifying criteria for the exemption.

• Attachments: Uploading supporting legal and financial documents.

• Verification: Final digital signature/verification by the authorized signatory.

4. Key Conditions for Exemption

To successfully use Form 174, the fund must generally demonstrate that:

• It is established under the law of a foreign country.

• It is not liable to tax in that foreign country or its income is exempt.

• It is responsible for administering or providing retirement/pension benefits.

• It does not participate in the day-to-day operations of the Indian investee (passive investment).

5. Filing Process Highlights

• Submission Mode: Electronic only, via the “Forms as per Income Tax Act 2025” tab on the e-filing portal.

   

• Verification: Must be verified using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

   

• Post-Filing: Once submitted, the status can be tracked under “View Filed Forms.” Successful processing results in a formal notification that grants the “exempt” status to the fund.

Comparison for Your Practice

As you manage your firm’s transition, here is the quick mapping:

Form 174 Income Tax Rules 2026 pdf download

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