Form 74 Income Tax Rules 2026 pdf download and Key points
FORM NO. 74
[See rule 145]
Statement of income paid or credited by Venture Capital Company or Venture Capital Fund to be furnished under section 222
Under the Income-tax Rules, 2026, Form No. 74 replaces the erstwhile Form 64. It is the statutory “Statement of income paid or credited by Venture Capital Company or Venture Capital Fund”. It is governed by Section 222 of the Income-tax Act, 2025, and Rule 145 of the Income-tax Rules, 2026.
Here are all the comprehensive key points regarding Form No. 74:
1. Purpose of the Form Form 74 is a statement filed by Venture Capital Companies (VCC) or Venture Capital Funds (VCF) to report the income they have paid or credited to their investors from investments made in Venture Capital Undertakings. Its core purpose is to facilitate pass-through taxation, ensuring that the VCC/VCF itself is exempt from tax and the income flows smoothly to the investors without double taxation.
2. Applicability (Who Should File) The form must be filed by every Venture Capital Company or Venture Capital Fund registered with the Securities and Exchange Board of India (SEBI) that distributes income to its unit holders or investors. (Note: These entities are defined in Note 4 below Schedule V of the IT Act, 2025).
3. Frequency and Due Date
- Frequency: The statement must be filed annually for the relevant tax year.
- Due Date: It must be filed by 15th June of the financial year immediately following the tax year in which the income was paid or credited to the investors.
4. Structure of the Form Form 74 is systematically structured to capture entity and distribution details:
- Fund/Company Details: Name, registered office address, and Permanent Account Number (PAN).
- Management Details: Name and address of the Directors (for a VCC) or the Trustees (for a VCF).
- SEBI Registration Details: The exact date of registration with SEBI under the relevant Alternative Investment Funds or Venture Capital Funds Regulations.
- Income Details: It contains the income classification (e.g., capital gains, dividend) and an investor-wise breakup of the distributions.
5. Mandatory Documents Required To successfully file Form 74, the filer must have the following documents in their possession:
- A copy of the Certificate of Registration issued by SEBI.
- A copy of the Venture Capital Fund deed (if the VCF is registered under the Registration Act, 1908).
- Audited accounts, including the balance sheet and annual report.
- Certified copies of income and appropriation towards the distribution or credit of income (including any amounts deemed to have been credited).
6. Process Flow and Mode of Filing
- Verification: Before filing, Form 74 must be examined and verified by a qualified accountant (Chartered Accountant) in the prescribed manner.
- Online Only: The form must be electronically filed under a digital signature on the Income Tax e-filing portal. Offline submission is strictly not allowed.
7. Outcome for the Investors Once processed, the income reported in Form 74 becomes taxable directly in the hands of the investors, exactly as if they had made direct investments in the Venture Capital Undertaking themselves. Investors must use the classification provided in the form to report this income in their respective Income Tax Returns (ITR-2, 3, 5, 6, or 7) under Schedule PTI (Pass Through Income).
8. Key Updates and Solutions in the 2026 Rules
- Addition of “Date of Distribution”: The old Form 64 did not have a field to capture the exact date of payment or credit, which caused tracking issues. Form 74 now explicitly includes a “Date of distribution” field.
- Introduction of Child Form 75: Previously, there was a mandate to furnish a statement to unit holders, but no official format was prescribed. The 2026 rules have introduced Form No. 75 as the official child form. Once Form 74 is filed, Form 75 is generated and downloaded to be given to the individual investors.
- Advanced Deadline: Under the old rules, the due date was 30th November, which delayed investors from filing their ITRs on time. The deadline has now been advanced to 15th June so investors have the required data well before their own ITR filing deadlines.