Form 172– Frequently Asked Questions

Report from an accountant to be furnished for the purpose of section 9 (12) [ Schedule I: Paragraph 1(4)] regarding fulfilment of certain conditions by an eligible investment fund

Name of form as per I.T. Rules, 1962	Form 3CEJA	Name of form as per I.T. Rules, 2026	172
Corresponding section of I.T. Act, 1961	9A	Corresponding section of I.T. Act, 2025	9 (12) & Schedule I
Corresponding Rule of I.T. Rules, 1962	10V(13)	Corresponding Rule of I.T. Rules, 2026	274(7)

1. What is Form 172?

Ans: Form 172 is report by Accountant regarding the conditions fulfilled for an investment fund with respect to fund manager to claim no business connection in India under section 9(12) of the Income-tax Act, 2025). This form is prescribed under Rule 274(7) of Income-tax Rules, 2026.

2: Who should file Form 172?

Ans: Form 172 can be filed by every eligible investment fund, that is, the Accountant which the eligible investment fund, has appointed for this purpose

3: Is Form 172 mandatory?

Ans: Yes, Form 172 is mandatory.

4: What is the time limit for filing Form 172?

Ans: Form 172 must be filed by specified date of Section 173 r.w.s 172 and Section 263 of Income-tax Act, 2025, which is 31st October of the succeeding Financial Year to the tax year.

5: How many times can Form 172 be filed in a year?

Ans: Form 172 must be filed once in a tax year

6: What documents are required to file Form 172?

Ans: Following documents may be required for filing Form 172 :

• Communication addresses, emails, phone nos. of the investment manager
• SEBI Registrations of the Fund Manager/s
• Financial statement showing details of investment in the fund and transactions with related parties.
• Contracts/documents specifying the activities of the fund manager and remuneration payable to the fund manager/s

7: Can I edit Form 172 after submission?

Ans: No. Once Form 172 is submitted and acknowledgment is generated, it cannot be edited. Ensure all details are correct before submission.

8: While filling personal details, can I leave Aadhaar or mobile number blank?

Ans:

• Aadhaar is no longer required in the personal details.
• Mobile number ensures faster communication and verification; it is recommended to provide it.

9: What if I do not have a PAN?

Ans: Form 172 cannot be submitted without a valid PAN.

10: Can Form 172 be filed offline?

Ans: No. Form 172 can only be submitted online through the Income Tax e-Filing portal.

11. What is the process flow of filing Form 172?

Ans: The process flow for filing Form 172 includes following steps

1. Firm/Accountant has to register on the UDIN portal to generate UDIN as per the process of the ICAI.
2. The Form is to be filed electronically through the e-filing portal of the Income Tax Department by the accountant after generation of Unique Document Identification Number.
3. The statement should be digitally signed by the accountant.

12: Why is Form 172 important?

Ans: Filing Form 172 enable the fund to claim its activities are not constituting business connection in India subject to the conditions being fulfilled Failure to file Form 172 can lead to:

• Levy of Penalty under Section 447 of the Income-tax Act, 2025 of 100000 rupees
• Other proceedings for assessment of income under the Income-tax Act, 2025.

Business connection in India reporting through Form 172 requires mandatory electronic filing, UDIN generation, and supporting documentation. Form 172 is the mandatory accountant's report for an eligible investment fund to show compliance with conditions for claiming no business connection in India. It is filed once in a tax year by the appointed accountant through the Income Tax e-filing portal, after UDIN generation and digital signature. The form requires a valid PAN, cannot be edited after submission, and may need supporting documents such as fund manager details, SEBI registrations, financial statements, and contracts relating to the fund manager's activities and remuneration.