Form 68: Is Your Exempt Income Claim Protected?

The Income Tax Department has introduced Form 68, a new statement for reporting exempt income. Eligible investors — especially non-residents in specified funds — must file it correctly to legally claim tax exemptions under India's updated tax rules.

Here's what happened: The Income-tax Act, 2025 introduced Form 68 as a formal declaration for reporting exempt income from specified investment funds.. Non-resident investors in eligible funds must file Form 68 to claim tax benefits — the exemption is not automatic without this filing.. This form is part of a broader push by India's tax authorities to improve transparency and documentation around tax-exempt investment income..

What you should do: Check with your fund manager or CA whether any of your investments are in 'specified funds' that qualify for exempt income under the new rules.. File Form 68 before your ITR deadline if you are a non-resident Indian (NRI) or have income from eligible exempt-category funds — missing it can cost you the exemption.. Review your ITR carefully this year: if you are claiming any Section 10-based exemptions on investment income, ensure the supporting documentation and forms are in order..

Tax exemptions under Section 10 are NOT self-activating — you must actively claim them with proper forms. A missed form can turn a ₹0 tax liability into a demand notice.