Rules 236 and 237 of the Draft Income-tax Rules, 2026 prescribe reporting obligations for certain persons and entities in relation to statements required under sections 507 and 508 of the Act. Rule 236 requires every person engaged in the production of cinematograph films or any specified activity to furnish a statement in Form No. 164 for each tax year. The statement must be submitted within sixty days from the end of the tax year. The prescribed authority for receiving such statements is the Director General of Income-tax (Systems) or any person authorised by him, who will subsequently forward the statement to the jurisdictional Assessing Officer. The expression “specified activity” carries the meaning assigned to it under section 507(3) of the Act.
Rule 237 provides for furnishing a statement of financial transactions under section 508(1) in Form No. 165 in respect of specified transactions occurring during a financial year. Various reporting entities such as banking companies, cooperative banks, post offices, NBFCs, companies issuing shares or bonds, credit card issuers, insurers, authorised foreign exchange dealers, registrars of property transactions, and other persons liable for audit are required to report transactions exceeding prescribed monetary thresholds. These include high-value cash deposits and withdrawals, purchase of bank drafts or prepaid instruments, credit card payments, acquisition of shares or debentures, buy-back of securities, foreign currency transactions, immovable property transactions, insurance premium receipts, and large cash payments for goods or services. The statement must be furnished electronically with a digital signature to the designated income-tax authority on or before 31 May following the relevant financial year. Additional provisions require reporting entities to maintain detailed information, appoint designated directors and principal officers for compliance, and follow prescribed procedures for secure transmission, verification, and record maintenance of financial transaction data.
Extract of Rule No. 236 and 237 of Draft Income-tax Rules, 2026
Rule 236
Form of statement to be furnished by producers of cinematograph films or persons engaged in specified activity.
(1) The statement required to be furnished under section 507 of the Act by a person carrying on production of cinematograph film or engaged in specified activity, or both, shall be in Form No. 164 for each tax year.
(2) Form No. 164 shall be furnished within sixty days from the end of the tax year.
(3) For the purpose of section 507 of the Act, the prescribed authority shall be the Director General of Income-tax (Systems) or any person authorised by him.
(4) The Director General of Income-tax (Systems) or any person authorised by him shall forward Form No. 164 to the Assessing Officer.
(5) For the purposes of this rule, “specified activity” shall have the same meaning as assigned to it in section 507(3) of the Act.
Rule 237
Furnishing of statement of financial transaction
(1) The statement of financial transaction required to be furnished under section 508(1) of the Act shall be furnished in respect of all transactions as specified in sub-rule (2) in a financial year in Form No. 165 and shall be verified in the manner indicated therein.
(2) The statement referred to in sub-rule (1) shall be furnished by every person mentioned in column (4) of the Table below in respect of all the transactions of the nature specified in the corresponding entry in column (2) and value specified in the corresponding entry in column
(3) of the said Table, in accordance with the provisions of sub-rule (3), which are registered or recorded by him, namely:–
TABLE
| Sl. No. | Nature of Transaction | Value of Transaction | Class of Person (Reporting Person) |
| 1 | 2 | 3 | 4 |
| (b) | (a) Payment made in cash for purchase of bank drafts or pay orders or banker’s Cheque | Amount, in a financial year in one or more account of a person, aggregating to –
(i) ₹10 lakh or more for a person having PAN; (ii) ₹5,00,000 or more for a person not having PAN |
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act) |
| (b) Payments made in cash or otherwise for purchase of pre-paid instruments issued by RBI under section 18 of the Payment and Settlement Systems Act, 2007 | Amount aggregating to ₹10 lakh or more during the financial year | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies | |
| (c) Cash deposits or cash withdrawals (including through bearer’s cheque) in or from one or more current account of a person | Amount aggregating to ₹50 lakh or more in a financial year | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies | |
| 2 | Cash deposits in one or more accounts (other than a current account and time deposit) of a person | Cash deposits in a financial year aggregating to –
(i) ₹10 lakh or more for a person having PAN; (ii) ₹5,00,000 or more for a person not having PAN |
(i) A Banking company or co-operative bank under Banking Regulation Act, 1949;
(ii) Post Master General under the Indian Post Office Act, 1898 |
| 3 | One or more time deposits (other than renewal of another time deposit) of a person | Amount aggregating to ₹10 lakh or more in a financial year | (i) Banking company or co-operative bank;
(ii) Post Master General; (iii) Nidhi under section 406 of the Companies Act, 2013; (iv) NBFC registered under section 45-IA of RBI Act, 1934 |
| 4 | Payments made by any person against bills raised in respect of one or more credit cards issued to that person | Amount aggregating to –
(i) ₹1,00,000 or more in cash; or (ii) ₹10 lakh or more by any other mode |
Banking company, co-operative bank, or any other company or institution issuing credit cards |
| 5 | Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than renewal) | Amount aggregating to ₹10 lakh or more in a financial year | A company or institution issuing bonds or debentures |
| 6 | Receipt from any person for acquiring shares (including share application money) issued by the company | Amount aggregating to ₹10 lakh or more in a financial year | A company issuing shares |
| 7 | Buy back of shares from any person (other than shares bought in the open market) | Amount or value aggregating to ₹10 lakh or more in a financial year | A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 |
| 8 | Receipt from any person for sale of foreign currency including credit to forex card or expenditure in such currency through debit/credit card or issue of traveler’s cheque or draft | Amount, in a financial year in one or more account of a person, aggregating to –
(i) ₹10 lakh or more for a person having PAN; (ii) ₹5,00,000 or more for a person not having PAN |
Authorised person referred to in section 2(c) of the Foreign Exchange Management Act, 1999 |
| 9 | Purchase or sale or gift or joint development agreement of an immovable property | (i) Amount of ₹45 lakh or more; or (ii) Stamp Duty Value of ₹45 lakh or more | Inspector-General under the Registration Act, 1908 or Registrar/Sub-Registrar |
| 10 | Purchase of stamp paper by any person | (i) ₹2,00,000 or more in one transaction for person having PAN;
(ii) ₹1,00,000 or more in one transaction for person not having PAN |
Stock Holding Corporation of India Limited |
| 11 | Receipt from any person against insurance premium | Amount, in a financial year aggregating to –
(i) ₹10 lakh or more for person having PAN; (ii) ₹5,00,000 or more for person not having PAN |
Insurer as defined in section 2(9) of the Insurance Act, 1938 |
| 12 | Receipt of cash payment for sale of goods or services (other than transactions specified at Sl. No. 1-11) | Amount exceeding ₹2,00,000 | Any person liable for audit under section 63 of the Act. |
(3) The reporting person mentioned in column (4) of the Table under sub-rule (2) (other than the persons at Sl. No. 9,10 and 12) shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person as specified in column (3) of the said Table,—
a. take into account all the accounts of the same nature as specified in column (2) of the said Table maintained in respect of that person during the financial year;
b. aggregate all the transactions of the same nature as specified in column (2) of the said Table recorded in respect of that person during the financial year;
c. attribute the entire value of the transaction or the aggregated value of all the transactions to all the person, in a case where the account is maintained or transaction is recorded in the name of more than one person;
d. apply the threshold limit separately to deposits and withdrawals in respect of transaction specified in item (c) under column (2), against Sl. No. 1 of the said Table.
(4) (a)The return in Form No. 165 referred to in sub-rule (1) shall be furnished to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose under the digital signature of the person specified in sub-rule (8) and in accordance with the data structure specified in this regard by the Principal Director General of Income-tax (Systems); so, however, that in case of a reporting person, being a Post Master General or a Registrar or an Inspector General referred to in sub-rule (2), the said form may be furnished in a computer readable media, including a Compact Disc or Digital Video Disc (DVD), along with the verification in Form-V on paper.
(b) Principal Director General of Income-tax (Systems) shall specify the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies.
(c) The Board may designate an officer as Information Statement Administrator, not below the rank of a Joint Director of Income-tax for the purposes of day to day administration in relation to the furnishing of returns or statements.
(5) The statement of financial transactions referred to in sub-rule (1) shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded.
(6) For the purposes of pre-filling the return of income, a statement of financial transaction under section 508(1) of the Act containing information relating to capital gains on transfer of listed securities or units of Mutual Funds, dividend distributed and interest paid or credited mentioned in column (2) of Table below shall be furnished by the persons mentioned in column (4) of the said Table in such form at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), as the case may be, with the approval of the Board, namely:—
TABLE
| Sl. No | Nature of transaction | Value of transaction | Class of person (reporting person) |
| (1) | (2) | (3) | (4) |
| 1. | Capital gains on transfer of listed securities or units of Mutual Funds. | All transactions | (i) Recognised Stock Exchange;
(ii) Depository as defined in section 2(1)(e) of the Depositories Act, 1996 (22 of 1996); (iii) Recognised Clearing Corporation; (iv) Registrar to an issue and share transfer agent registered under section 12(1) of the Securities and Exchange Board of India Act, 1992 (15 of 1992). |
| 2. | Dividend distributed | All transactions | A company |
| 3. | Interest paid or credited | All transactions | (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies(including any bank or banking institution referred to in section 51 of that Act);
(ii) Post Master General as referred to in section 2(j) of the Indian Post Office Act, 1898 (6 of 1898). (iii) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. |
(7) (a) Every reporting person mentioned in column (4) of the Table under sub-rule (2) and column (4) of the Table under sub-rule (6) shall communicate to the Principal Director General of Income-tax (Systems) the name, designation, address and telephone number of the Designated Director and the Principal Officer and obtain a registration number. (b)It shall be the duty of every person specified in column (4) of the Table under sub-rule (2) and column (4) of the Table under sub-rule (6), its Designated Director, Principal Officer and employees to observe the procedure and the manner of maintaining information as specified by its regulator and ensure compliance with the obligations imposed under section 508 of the Act and rules 159, 160 and 161 and this rule.
(8) The statement of financial transaction referred to in sub-rule (1) and sub-rule (6) shall be signed, verified and furnished by:–
a. a person who holds a valid power of attorney from such Designated Director as specified in sub-rule (7), where the reporting person is a non-resident;
b. the Designated Director in all other cases.
(9) For the purposes of this rule,–
a. “Designated Director” means a person designated by the reporting person to ensure overall compliance with the obligations imposed under section 508 of the Act and the rules 114B to 114D and this rule and includes—
i. the Managing Director or a whole-time Director, as defined in the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors if the reporting person is a company;
ii. the managing partner if the reporting person is a partnership firm;
iii. the proprietor if the reporting person is a proprietorship concern;
iv. the managing trustee if the reporting person is a trust; v. a person or individual, as the case may be, who controls and manages the affairs of the reporting entity if the reporting person is, an unincorporated association or, a body of individuals or, any other person;
b. “digital signature” means a digital signature issued by any Certifying Authority authorised to issue such certificates by the Controller of Certifying Authorities;
c. “listed securities” means the securities which are listed on any recognised stock exchange in India;
d. “Mutual Fund” means a Mutual Fund as referred to in Schedule VII(20) and VII(21) of the Act;
e. “Principal Officer” means an officer designated by the reporting person referred to in the Table in sub-rule (2) and in sub-rule
f. “recognised clearing corporation” shall have the same meaning as assigned to it in regulation 2(1)(o) of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 made under the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992);
g. “recognised stock exchange” shall have the same meaning as assigned to it in section 2(f) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
h. “Regulator” means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activity of the reporting person referred to in the Table in sub-rule (2) and in sub-rule (6);
i. “securities” shall have the same meaning as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).
