The Central Board of Direct Taxes (CBDT) has introduced Form 173A under the Income-tax Rules, 2026 for taxpayers claiming specified exemptions on interest and capital gains from government securities, ANI reported via Latestly and NewKerala. A Ministry of Finance notification dated October 19, 2026 — the Income-tax (Seventh Amendment) Rules, 2026, Notification No. 137/2026 — requires claims under Schedule IV Table entries 13D and 13E of the Income-tax Act, 2025 to furnish the prescribed information in Form 173A. The amended rules came into force on publication in the Gazette.

According to an analysis of the notification by A2Z Taxcorp LLP, the form seeks the investor's name, country of residence, address, PAN, tax year, email, contact details, foreign tax ID and SEBI registration where applicable, along with security-wise details: the ISIN, type and tenor of the security, its value on April 1, purchases during the year, sale proceeds, value on March 31, gross interest and capital gains. The covered securities include Treasury bills, fixed-rate bonds, floating-rate bonds and State Development Loans. The Hindu BusinessLine reported that Form 173A is meant for FIIs, overseas investors and the Bank for International Settlements claiming exemption on government securities.

Separately, The Hindu BusinessLine reported that the Income Tax Department has notified that no tax will be deducted under section 393(1) on interest paid by the New Development Bank (NDB) to holders of its Maharaja INR Bonds for tax year 2026-27 and subsequent years. That notification also took effect on publication in the Gazette on October 19, 2026.

Sources: ANI (via Latestly and NewKerala); A2Z Taxcorp LLP; The Hindu BusinessLine.