Form 189 Income Tax Rules 2026 pdf download and Key points
FORM NO. 189
[See rule 331]
Application for approval of issue of public companies under Paragraph 1(z)(i) of Schedule XV to the Act
Under the Income-tax Rules, 2026, Form No. 189 replaces the old Form 59. It is governed by Schedule XV(1)(z)(i) of the Income-tax Act, 2025, and Rule 331 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 189:
1. Purpose of the Form Form 189 is an application used by an assessee to seek approval for the issue of eligible capital by a public company. Obtaining this approval is crucial because contributions made to such approved public issues by individuals become eligible for a tax deduction under Section 123 of the Income-tax Act, 2025.
2. Applicability (Who Should File) It must be filed by an assessee (a public company) that is applying for the approval of its public issue of shares or debentures.
3. Due Date The application form, along with all necessary documents, must be filed three months before the issue of the eligible capital.
4. Structure of the Form The form captures comprehensive details to evaluate the company and its public issue, including:
- Basic details of the company: Name, address, and incorporation details.
- Management Details: Information on Directors (including their experience, qualifications, and profession), key personnel, organizational structure, and details of the Board of Directors for any associate organizations, companies, or subsidiaries.
- Bankers and Auditors: Names and addresses of the company’s bankers and auditors.
- Issue details: Number of shares/units, face value, premium or discount, and the detailed objects/purpose of the present equity or debenture issue.
- Infrastructure project details: If the shares are issued for an infrastructure project, it captures the nature, location, year-wise investment plan, development schedule, and project report details.
5. Mandatory Documents Required To successfully file Form 189, the company must attach several supporting annexures:
- A copy of the certificate of incorporation under the Companies Act, 2013.
- A copy of the latest audited financial statements along with the audited balance sheets for the last three years.
- A description of significant accounting policies.
- Details of the equity being issued, strictly including a copy of the SEBI approval for the issue.
- A copy of the project report, if applicable.
6. Process Outcome Once the form and its documents are submitted and reviewed, the outcome is the official approval for the issue of eligible capital under Schedule XV(1)(z)(i), allowing individual investors to legally claim their tax deductions for subscribing to the issue.