New Delhi, Oct. 20 -- The Central Board of Direct Taxes (CBDT) has made it mandatory for eligible foreign investors and the Bank for International Settlements (BIS) to submit Form 173A to claim income-tax exemptions on interest and capital gains from government securities. The requirement was introduced through the Income-tax (Seventh Amendment) Rules, 2026, notified on 19 October.

The new form lays down the information that eligible investors must furnish to claim exemptions under entries 13D and 13E of Schedule IV of the Income-tax Act, 2025. The amended rules came into force upon publication in the Official Gazette. The exemptions apply to qualifying income from government securities, subject to the conditions prescribed under the Act...