Form 190 Income Tax Rules 2026 pdf download and Key points
FORM NO. 190
[See rule 331]
Application for approval of mutual funds investing in the eligible issue of public companies under Paragraph 1(z)(ii) of Schedule XV to the Act
Under the new Income-tax Rules, 2026, Form No. 190 replaces the old Form 59A. It is governed by Schedule XV(1)(z)(ii) of the Income-tax Act, 2025, and Rule 331 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 190:
1. Purpose of the Form Form 190 is an application used by a Mutual Fund to apply for approval to invest in the eligible issue of public companies. Securing this approval is crucial because contributions made to such approved Mutual Funds 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 a Mutual Fund that is seeking approval to subscribe to the eligible issue of a public company.
3. Due Date The application form, along with all the necessary documents, must be filed three months before the issue of the eligible capital.
4. Structure of the Form The form systematically captures information to evaluate the mutual fund and the proposed investment, which includes:
- Basic details of the Mutual Fund: Name, address, objectives, and SEBI registration details.
- Management Details: Information regarding Trustees (including their qualifications and experience) and Custodians.
- Bankers and Auditors: Names and addresses of the fund’s bankers and auditors.
- Proposed Scheme Details: Specifics like the number of units, face value (Net Asset Value), and the total amount to be mobilized.
- Public Company Details: Details of the public company in whose public issue the subscription is proposed to be made, including details of the company’s share issue and a copy of the public issue approval.
5. Mandatory Documents Required To successfully file Form 190, the Mutual Fund must attach several supporting documents:
- A copy of the Mutual Fund Deed.
- A copy of the SEBI registration order.
- A copy of the approval under Schedule VII (Table: 20 or 21) of the Income-tax Act.
- A copy of the custodian agreement for the Mutual Fund.
- A copy of the last three years’ audited balance sheet.
- Management details (Directors and Key personnel).
- Details of the equity being issued, including a copy of the SEBI approval for the issue.
- A copy of the approval granted to the public company by the Board for the issue of shares.
6. Outcome of Processing Once the form and its documents are submitted and reviewed, it leads to the official approval for the mutual fund’s subscription to the issue of eligible capital under Schedule XV(1)(z)(ii). This approval ultimately allows individual investors to legally claim tax deductions for their contributions to the fund.
7. Key Updates in the 2026 Rules
- Pre-filling Data: Basic details such as Name, PAN, and Tax Year are now pre-filled with an option for the assessee to edit them.
- Terminology Update: Old terms such as “Assessment year”, “Financial year”, or “Previous year” have been universally replaced with “Tax year”.
- Act Alignment: All sections, clauses, and schedules have been updated to strictly reflect the new Income-tax Act, 2025.