Form 178 Income Tax Rules 2026 pdf download and Key points
FORM NO. 178
[See rule 285(1)]
Statement of exempt income under Schedule VI [Table: Sl. No. 10]
1. Statutory Requirement
Under Section 265 of the Income Tax Act, 2025 (the successor to Section 178 of the 1961 Act), every person who is appointed as a liquidator of any company, or who is appointed as a receiver of any assets of a company, is legally required to notify the Assessing Officer of their appointment.
2. Purpose of Filing
The primary goal of Form 178 is to:
Inform the Income Tax Department that the company is entering liquidation.
Allow the Assessing Officer to calculate and notify the liquidator of any anticipated tax liabilities (current or outstanding) within 3 months of the intimation.
3. Timeline for Submission
The liquidator must furnish Form 178 within 30 days of their appointment. Failure to do so can lead to personal liability for the liquidator for any unpaid taxes of the company.
4. Contents of Form 178
Company Details: Name, PAN, and Registered Office address.
Liquidator Information: Name, Address, PAN, and professional registration number (e.g., IBBI registration for insolvency professionals).
Appointment Details: Date of the court order or the resolution passed by the company/creditors for winding up.
Jurisdictional AO: Details of the Assessing Officer under whose jurisdiction the company is currently assessed.
5. Restrictions Post-Filing
Once Form 178 is filed and the AO notifies the amount of potential tax liability:
The liquidator cannot part with any of the assets of the company or the properties in their hands until they have set aside an amount equal to the amount notified by the AO.
An exception is made only for the payment of secured creditors who have priority over Government dues or for the cost of the liquidation itself.
Professional Context for Satbir Singh & Associates
Since you manage corporate compliance and taxation, this form is a vital “gatekeeper” in insolvency proceedings.
| Feature | Old Rule (1961) | New Rule (2026) |
| Form Number | Form 57 | Form 178 |
| Primary Section | Section 178 | Section 265 |
| Submission Mode | Manual/Digital | Strictly Digital (via E-filing Portal) |