New Delhi, Oct. 21 -- The Central Board of Direct Taxes (CBDT) has introduced a new Form 173A for foreign institutional investors (FIIs) and the Bank for International Settlements (BIS) to claim income-tax exemption on interest and capital gains from government securities.

The Income-tax (Seventh Amendment) Rules, 2026, notified on October 19, make furnishing the form mandatory for claiming exemptions under entries 13D and 13E of Schedule IV of the Income-tax Act, 2025.

Entry 13D covers FIIs, while entry 13E applies to the BIS. The exemptions cover interest earned on government securities and capital gains arising from their sale, exchange or transfer. They are not available to ordinary investors.

Details Required In Form 173A

The for...