Form 68 Income Tax Rules 2026 pdf download and Key points
FORM NO. 68
[See rule 139]
Statement of exempt income under Schedule VI [Table: Sl. Nos. 1 to 4]
Under the Income-tax Rules, 2026, Form No. 68 replaces the erstwhile Form 10-IG. It is governed by Section 11 read with Schedule VI [Table: Sl. Nos. 1 to 4] of the Income-tax Act, 2025, and Rules 139 and 144 of the Income-tax Rules, 2026,.
Here are all the key points regarding Form No. 68:
1. Purpose of the Form Form 68 serves as an annual statement of exempt income. It allows “specified funds” to formally claim tax exemption on the income that is attributable to units held by non-residents (provided the non-resident does not have a permanent establishment in India).
2. Applicability (Who Should File) The form must be filed by a specified fund, which includes entities certified as a Category III Alternate Investment Fund (AIF), a Retail fund, or an Exchange Traded Fund (ETF).
- Is it mandatory? Yes, filing a valid Form 68 within the specified time limit is a strictly mandatory condition for the specified fund to make an admissible claim for this exemption,.
3. Frequency and Due Date
- Frequency: It is filed annually for the relevant tax year,.
- Due Date: The form must be filed on or before the due date for furnishing the return of income as prescribed under Section 263(1)(c) of the Income-tax Act, 2025,.
4. Structure of the Form Form 68 is divided into specific parts to capture the fund’s profile and its exempt income details:
- Part A (Particulars of the Specified Fund): Captures the fund’s Name, Registered Office Address, Permanent Account Number (PAN), Status, Contact Details, and crucially, the Registration Number and Date of Registration issued by the International Financial Services Centre (IFSC) Authority.
- Part B (Other Information): Captures the detailed breakdown of the income, such as income from a securitization trust chargeable under the head “Profits and gains of business or profession”, mapped against the non-resident holdings.
5. Mandatory Documents Required To successfully file Form 68, the fund must attach the following extensive documentation:
- A copy of the Trust deed, Memorandum of Association (MOA), or any other legal instrument evidencing the formation of the fund.
- The Certificate of Registration issued by the IFSC.
- Annual financial statements of the fund for the relevant tax year.
- A detailed Statement of securities (both held during the year and transactions executed), which must include income earned and gains arising on the transfer of these securities.
- Details of Unit Holders, explicitly indicating the number of units held by each and their classification by residency status (resident vs. non-resident).
6. Mode of Filing and Verification
- Online Only: Form 68 must be submitted electronically on the Income Tax Department’s e-filing portal.
- Verification: The application, annexures, and all attached statements must be signed digitally or verified through an Electronic Verification Code (EVC) by the Principal Officer or Managing Trustee of the specified fund,.
- No Edits Allowed: Once Form 68 is validly submitted, verified, and an acknowledgment is generated, it cannot be edited.
7. Outcome Once the form is validly filed and successfully processed by the Department, the specified fund is officially granted the exemption under Section 11 read with Schedule VI of the ITA 2025 for the income attributable to its eligible non-resident unit holders.