Form 172 Income Tax Rules 2026 pdf download and Key points
FORM NO. 172
[See rule 274]
Report from an accountant to be furnished for the purpose of section 9(12) [Schedule I: Paragraph 1(4)]
regarding fulfilment of certain conditions by an eligible investment fund
Under the Income-tax Rules, 2026, Form No. 172 replaces the old Form 3CEJA. It is governed by Section 9(12) & Schedule I of the Income-tax Act, 2025, and Rule 274(7) of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 172:
1. Purpose of the Form Form 172 is a report furnished by an Accountant regarding the fulfilment of certain conditions by an eligible investment fund with respect to its fund manager, to formally claim that its activities do not constitute a “business connection” in India under section 9(12) of the Act.
2. Applicability (Who Should File) It must be filed by the Accountant whom the eligible investment fund has specifically appointed for this purpose.
3. Frequency and Due Dates
- Frequency: The form must be filed once in a tax year.
- Due Date: It must be filed by the specified date under Section 173 read with Section 172 and Section 263 of the Act, which is 31st October of the succeeding tax year.
4. Mode of Filing and Process Flow
- UDIN Requirement: The firm/accountant must first register on the UDIN portal to generate a Unique Document Identification Number (UDIN) as per ICAI processes.
- Online Only: The form is filed electronically through the e-filing portal of the Income Tax Department by the accountant.
- Authentication: The statement must be digitally signed by the accountant.
- 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 PAN. Aadhaar is no longer required in the personal details, but a mobile number is recommended for faster communication.
5. Structure of the Form The revised form introduces a tabular structure to present a clear picture of the information and is divided into two parts:
- Part A: A standard template capturing basic details such as the communication address, email, phone number, etc..
- Part B: Captures other relevant information specific to the fund and the transaction.
6. Mandatory Documents Required To successfully file Form 172, the following documents or details may be required:
- Communication addresses, emails, and phone numbers of the investment manager.
- SEBI Registrations of the Fund Manager(s).
- Financial statements showing details of investment in the fund and transactions with related parties.
- Contracts or documents specifying the activities of the fund manager and the remuneration payable to them.
7. Outcomes and Consequences of Non-Compliance
- Outcome: Upon processing, the fund becomes eligible to claim that its activities do not constitute a business connection in India, subject to the conditions being fulfilled. The form is sent to the Assessing Officer and may be picked up for verification.
- Penalties: Failure to file Form 172 can lead to a levy of penalty of ₹1,00,000 under Section 447 of the Income-tax Act, 2025, alongside other proceedings for the assessment of income.
8. Key Updates in the 2026 Rules
- The form corrects previous errors by explicitly referencing the new related party provisions under Section 162 of the 2025 Act.
- Standard systemic changes apply, including the separation of Name, Designation, Address, and PAN into different boxes, and the replacement of the term “previous year” with “tax year“.