Form 173A: CBDT’s New Disclosure Rules for Tax-Exempt Gains on Government Securities

The CBDT has added a new form to the rulebook, and it matters to anyone who claims a tax exemption on government bonds. Form 173A is now the prescribed way to report interest and capital gains from government securities when you claim an exemption. In this post, we explain what changed, what the form asks for, and what NRIs should take away from it.

What Is Form 173A?

Form 173A is titled “Information to be furnished for claiming exemption on interest and capital gains from Government securities.” It sits in the Income-tax Rules, 2026 and is linked to the new Income-tax Act, 2025.

In simple words: if you claim that your interest or capital gains from government securities are exempt, you now have to back that claim with a structured, security-wise disclosure.

What Did CBDT Notify?

The Ministry of Finance published the amendment in the Gazette of India on 19 October 2026. It inserts Rule 281A after Rule 281 in the Income-tax Rules, 2026. Under this rule, anyone seeking exemption under Schedule IV, Table entries 13D and 13E must furnish the details in Form 173A.

The amendment comes into force from the date of its publication in the Official Gazette. The reports we reviewed do not mention a separate filing due date, so check the Gazette notification itself for any timeline.

Details Form 173A Asks For

The form has two parts. Part A is about who you are. Part B is about what you hold and earn.

Two small but useful points. First, the TIN and SEBI registration fields are optional for the Bank for International Settlements (BIS). Second, amounts must be reported in Indian rupees unless the form says otherwise. The form also carries a declaration, with date, place, signature and name of the principal officer where applicable.

The TIN field is a good reminder that your country of tax residence matters in cross-border cases. If you want to understand how residence-based treaty relief works, read our guide on DTAA benefits for NRIs.

Which Government Securities Are Covered?

The form covers these instruments:

• Treasury Bills (T-Bills)
• Fixed-rate bonds
• Floating-rate bonds
• State Development Loans (SDLs)
• Other government securities

If you hold more than one security, the form allows you to repeat the security details in the same format.

What Form 173A Does Not Do

This is the part many people will misread, so let us be clear. The notification:

• Does not introduce a new exemption or a new rate,
• Does not decide who is eligible for the exemption, because eligibility still comes from the Income-tax Act, 2025, and
• Does not give a blanket exemption on all income from government securities.

It only prescribes the information you must furnish to claim an exemption that already exists in Schedule IV.

Does Form 173A Apply to NRIs?

This is the question our readers will ask first. The form requires a SEBI registration number as an FPI or FII and mentions the BIS, so it is clearly built with foreign institutional investors in mind. The reports we reviewed describe it as relevant for “eligible foreign investors” and do not say that every individual NRI must file it.

So, if you are an individual NRI who simply earns interest on an NRO or NRE deposit, or sells shares, this form is not something you need to worry about. But if you invest in Indian government securities and plan to claim an exemption, check whether your claim falls under entries 13D or 13E. For the regular tax side of investing in India, see our explainer on NRI capital gains tax on shares.

What Should You Do Now?

1. Check your claim. Confirm whether your exemption falls under Schedule IV, Table entries 13D or 13E.
2. Collect security-wise data. Keep ISIN, tenure, opening and closing values, purchase and sale amounts ready.
3. Match interest and gains. Gross interest and capital gains should tally with your broker, custodian or bank statements.
4. Keep residence papers handy. Your PAN, TIN and, where applicable, SEBI registration should be correct and consistent.
5. Do not rely on guesswork. Since the form is part of the rules, wrong or missing data can invite questions from the tax department.

Even if Form 173A does not apply to you, accurate reporting of every Indian income is important. 

Conclusion

Form 173A does not change who gets an exemption on government securities. It changes how the claim must be supported: with clear, security-wise numbers. Investors who claim these exemptions should keep their records ready and review the official notification. For everything else, keep your Indian income reporting clean and consistent.