The Income Tax Department has issued guidance on Form 190, which is used by mutual funds to apply for approval to invest in eligible issues of public companies under Schedule XV(1)(z)(ii) of the Income-tax Act, 2025. The form replaces earlier Form 59A under the 1962 Rules and is governed by Rule 331 of the Income-tax Rules, 2026. Approval granted through this process enables individuals investing in such mutual funds to claim deductions under Section 123 of the Act.
Form 190 is required to be filed by mutual funds seeking approval for subscription to eligible capital issues. The application must be submitted along with prescribed documents at least three months prior to the proposed issue of capital. The form captures detailed information about the mutual fund, including its structure, management, SEBI registration, auditors, and custodians, as well as particulars of the proposed scheme and the public company in which investment is intended.
Supporting documents such as the trust deed, SEBI registration, audited financial statements, and approvals relating to the public issue must be attached.
The approval is granted based on the information furnished in the form. The revised format introduces structured fields and pre-filled details to improve accuracy and streamline the application process under the updated tax framework.
Income Tax Department
Ministry of Finance, Government of India
FAQs on Income Tax Form 190 (Earlier Form 59A): Application for approval of mutual funds investing in the eligible issue of public companies under Paragraph 1(z)(ii) of Schedule XV to Income Tax Act, 2025
Application for approval of mutual funds investing in the eligible issue of public companies under section Schedule XV(1)(z)(ii) of the Income-tax Act, 2025
| Name of form as per I.T. Rules, 1962 | Form 59A | Name of form as per I.T. Rules, 2026 | Form 190 |
| Corresponding section of I.T. Act, 1961 | 80C(2)(xix) | Corresponding section of I.T. Act, 2025 | Schedule XV(1)(z)(ii) |
| Corresponding Rule of I.T. Rules, 1962 | 20A | Corresponding Rule of I.T. Rules, 2026 | 331 |
Q1. What is Form 190?
Ans. Form 190 is required to be filed by a Mutual Fund to apply for approval to invest in eligible issue of public companies under section Schedule XV(1)(z)(ii) of the Income-tax Act, 2025. The contribution to such Mutual Funds by individuals is eligible for deduction u/s 123 of the Income-tax Act, 2025.
Q2. Who should file Form 190?
Ans. A Mutual Fund applying for approval to subscribe to eligible issue of public companies under section Schedule XV(1)(z)(ii) of the Income-tax Act, 2025 should file this form.
Q3. What is the Due Date to file Form 190?
Ans. The application form should be filed by the Mutual Fund along with the documents as mentioned in the application form three months before the issue of eligible capital.
Q4. Why is Form 190 important?
Ans. The approval for subscription to issue of eligible capital as per Schedule XV(1)(z)(ii) of the Income-tax Act, 2025 is granted based on details filed in Form 190.
FAQs on Income Tax Form 190: Application for approval of mutual funds investing in the eligible issue of public companies under Paragraph 1(z)(ii) of Schedule XV to Income Tax Act, 2025
Application for approval of mutual funds investing in the eligible issue of public companies under section Schedule XV(1)(z)(ii) of the Income-tax Act, 2025
| Name of form as per I.T. Rules, 1962 | Form 59A | Name of form as per I.T. Rules, 2026 | Form 190 |
| Corresponding section of I.T. Act, 1961 | 80C(2)(xix) | Corresponding section of I.T. Act, 2025 | Schedule XV(1)(z)(ii) |
| Corresponding Rule of I.T. Rules, 1962 | 20A | Corresponding Rule of I.T. Rules, 2026 | 331 |
Purpose :
Form 190 is required to be filed by a Mutual Fund to apply for approval to invest in eligible issue of public companies under section Schedule X\T(1)(z)(ii) of the Income-tax Act, 2025. The contribution to such Mutual Funds by individuals is eligible for deduction u/s 123 of the Income-tax Act, 2025.
Who should file :
A Mutual Fund applying for approval to subscribe to eligible issue of public companies under section Schedule X\T(1)(z)(ii) of the Income-tax Act, 2025 should file this form.
Due Date:
The form should be filed by the Mutual Fund along with the documents as mentioned in the form three months before the issue of eligible capital.
Structure of Form 190:
– Basic details of Mutual fund – Name & address, objects, SEBI registration details
– Management Details – Trustees, qualification, experience, Custodians
– Details of the Bankers and Auditors – Name, Address
– Details of the proposed scheme – number, face value, total amount to be mobilised
– Details of the public company in whose public issue subscription is proposed to be made – Details of the public company issue of shares, copy of approval of public issue.
What are the documents/information required to file Form 190?
The following documents/information are required to file form 190:
1. Copy of Mutual Fund Deed.
2. Copy of SEBI registration order
3. Copy of approval under Schedule V11 (Table : 20 or 21) of Income Tax Act
4. Copy of custodian agreement for the Mutual Fund
5. Copy of last three years audited balance sheet
6. Management details (Directors and Key personnel)
7. Details of equity including copy of SEBI approval for issue
8. Copy of approval to public company by the Board for issue of shares.
Outcome of processed Form 190:
The approval for subscription to issue of eligible capital as per Schedule XV(1)(z)(ii) of the Income-tax Act, 2025 based on details filed in Form 190.
Common changes made across forms:
1. Pre-filling of basic details such as Name, PAN and Tax Year etc. with option for the assessee to edit the same.
2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
3. Sections, Clauses and Schedules changed as per the Income-tax Act, 2025.
4. Currency symbol “Rs.” has been replaced with “₹”.
