Form 162 Income Tax Rules 2026 pdf download and Key points
FORM NO. 162
[See rule 234]
Annual Statement under section 505
Under the new Income-tax Rules, 2026, Form No. 162 replaces the old Form 49C,. It is governed by Section 505 of the Income-tax Act, 2025, and Rule 234 of the Income-tax Rules, 2026,.
Here are all the key points regarding Form No. 162:
1. Purpose of the Form Form 162 is a mandatory annual statement providing detailed information about the activities and operations of a liaison office in India during a specific tax year,,. It helps establish that the entity’s activities do not constitute a “business connection” in India, serves as supporting evidence for RBI annual renewals or closure applications, and acts as a record for the parent company’s statutory filings abroad,.
2. Applicability (Who Should File) It must be filed by non-resident entities that have established a liaison office in India in accordance with the guidelines issued by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act, 1999 (FEMA),.
3. Frequency and Due Dates
- Frequency: Filed once in a tax year,.
- Due Date: It must be filed within 8 months from the end of the tax year,. This specific timeline aligns with the submission deadline for the Annual Activity Certificate (AAC) to the RBI.
4. Mode of Filing and Rules
- Electronic Filing Only: It can exclusively be submitted online through the Income Tax e-Filing portal and must be digitally signed by the authorized signatory of the non-resident entity,.
- No Edits Allowed: Once submitted and an acknowledgment is generated, the form cannot be edited.
- PAN is Mandatory: The form cannot be submitted without a valid Permanent Account Number (PAN).
- No Tax Proof Needed: Unlike many other forms, Form 162 does not require any proof of tax payment to be attached.
5. Structure of the Form
- Part A: Captures basic, structured details of the Head Office (abroad), the Principal Office in India, and the Chartered Accountant signing the Annual Activity Certificate,.
- Part B: Captures comprehensive operational details, including persons in charge, RBI approval dates, specific liaison activities, number of employees, salaries paid, and details of Indian parties with whom liaisoning is done,. It also captures India-specific financials, such as receipts, expenses, purchases, and sales of the entity and the liaison office separately, as well as information on permanent establishments of group entities.
6. Mandatory Documents Required To successfully file Form 162, the following documents must be attached:
- The certified Annual Activity Certificate (AAC) from a Chartered Accountant verifying that the Liaison Office’s activities were strictly in line with RBI’s approval.
- Audited financial statements of the Liaison Office (and possibly the parent entity) showing relevant India-specific receipts and expenses.
- Details, addresses, and PANs of the Indian parties (customers/suppliers) the office transacts with.
7. Consequences of Non-Compliance Failure to file Form 162 or adhere to the prescribed timelines can lead to severe consequences, including:
- A penalty under Section 460 of the Income-tax Act, 2025,.
- The revocation of the liaison office’s permission by the RBI,.
- Further actions related to the proper assessment of income under the Act.
8. Key Updates in the 2026 Rules
- Smart Form Features: The revised Form 162 is designed as a “smart form” to enhance the user experience by logically grouping related information (like employees and salaries, or RBI approvals) to save time.
- Streamlined Data: Redundant fields that existed in Part A have been removed from Part B to avoid duplication, and Aadhaar is no longer a requirement in Part A,.