Form 175 Income Tax Rules 2026 pdf download and Key points
FORM NO. 175
[See rule 282(1)]
Intimation by Pension Fund of investment under Schedule V [Table: Sl. No. 7] (within one month from the
end of the quarter ending on 30th June, 30th September, 31st December and 31st March of the financial year)
1. Purpose: Exemption under Schedule V
Form 175 is used by an SWF to claim 100% tax exemption on income from dividends, interest, and capital gains arising from investments made in Indian infrastructure and other specified sectors. This is governed by the provisions of the Income Tax Act, 2025 (formerly Section 10(23FE)).
2. Eligibility Criteria for the SWF
To successfully apply using Form 174, the fund must confirm that:
It is wholly owned and controlled, directly or indirectly, by the Government of a foreign country.
It is set up and regulated under the law of such foreign country (including its political subdivisions).
Its assets vest in the foreign Government upon dissolution.
No part of its earnings inures to the benefit of any private person.
3. Specific Investment Requirements
The exemption is generally tied to investments made in:
Infrastructure entities.
Category-I or Category-II Alternative Investment Funds (AIFs) that invest in infrastructure.
Domestic companies carrying on the business of developing, operating, or maintaining infrastructure facilities.
4. Core Information Required in the Form
Legal Status: Proof of being a government-owned entity.
Country of Residence: Details of the foreign jurisdiction.
Investment Plan: Broad details of the nature of intended investments in India.
Audit & Compliance: An undertaking to provide a certificate from an accountant (Form 176) annually to prove compliance with the notification conditions.
5. Non-Participation Clause
A critical point in Form 175 is the declaration that the Sovereign Wealth Fund shall not participate in the day-to-day operations of the Indian investee. The SWF’s role must remain that of a passive investor.
Comparison Table for Your Practice
| Feature | Pension Fund | Sovereign Wealth Fund (SWF) |
| Current Form (2026 Rules) | Form 174 | Form 175 |
| Old Form (1961 Act) | Form 10BBA | Form 10BC |
| Primary Requirement | Retirement/Benefit Focus | Government Ownership/Control |
| Annual Compliance | Form 176 (Audit Report) | Form 176 (Audit Report) |