Claiming G-sec tax exemption? CBDT mandates new reporting form
What Happened
CBDT has introduced Form 173A for taxpayers claiming specified income-tax exemptions on interest and capital gains from government securities. The requirement was notified on October 19, 2026. The form asks for investor details and security-specific information including ISIN, security type and tenor, opening and closing holdings, purchases and sale proceeds, gross interest and capital gains. Covered categories include Treasury Bills, fixed-rate bonds, floating-rate bonds and State Development Loans.
Key Takeaways
This is not a blanket tax exemption for everyone investing in government securities. Form 173A is the reporting requirement for taxpayers seeking exemptions available under the specified provisions of Schedule IV.