The income tax department has introduced Form 68 under the Income-tax Act, 2025 for filing statement of exempt income and claiming tax benefit on income attributable to eligible non-resident investors.
The form is not meant for individual taxpayers. Instead, it applies to specified investment funds that seek exemption under Section 11 read with Schedule VI (Table, Serial Nos. 1 to 4) of the Income-tax Act, 2025, and forms part of the compliance requirements under the new tax law.
What is Form 68?
Form 68 is an annual statement of exempt income that specified funds are required to file to claim exemption on income attributable to units held by non-resident investors. It is a mandatory condition for making a valid claim for this exemption under the .
The benefit is available only where the non-resident investor does not have a permanent establishment in India, according to the income tax department.
Who should file Form 68?
The requirement to file Form 68 applies to specified funds, including Category III Alternative Investment Funds (AIFs), Retail Funds and Exchange Traded Funds (). These funds must file the form annually if they claim exemption on income attributable to eligible non-resident unit holders.
Once done, the form must be verified by the Principal Officer or Managing Trustee of the specified fund. By verifying it, the authorised person confirms that the information furnished is true and correct, the fund meets the prescribed eligibility conditions and units held by resident investors have not been treated as non-resident holdings while calculating the exempt income.
Where and how the Form 68 is required to be filed?
The Form 68 shall be filed electronically on the e-filing portal of income tax department. Then it shall be verified under digital signature or through electronic verification code by the authorised person mentioned above.
It must be noted that Form 68 cannot be submitted offline, according to the income tax department.
PAN mandatory
Form 68 cannot be filed without a valid Permanent Account Number (PAN) of the specified fund and a valid PAN of the Principal Officer or Managing Trustee who is verifying the form.
What is the deadline for filing Form 68?
The statement of exempt income in Form 68 for claim of must be filed on or before the due date for filing return of income prescribed under section 263(1)(c) of the Income-tax Act, 2025, as applicable to the specified fund claiming the exemption. The prescribed time limit is set out in the relevant rules.
What documents are required to file Form 68?
The following documents may be required while filing Form 68:
- A copy of Trust deed, or memorandum of association, or any other legal instrument evidencing the formation of the fund.
- Certificate of registration issued by the IFSC.
- Annual financial statements of the fund for the relevant tax year.
- Statement of securities (held during the year and transactions executed) including income earned on securities held and gain arising on transfer of securities.
- Details of unit holders with number of units held by them and their classification by residency status (resident or non-resident),
Can you revise Form 68 after submission?
No, once Form 68 is validly submitted, verified by the Principal Officer or Managing Trustee of the specified fund, and acknowledgment is generated, it cannot be edited.
Hence, the I-T department has urged applicants to ensure that all details are correct before final submission.