Income Tax Form 180: Application for Approval of Employee Welfare Fund

The Income Tax Department has issued guidance on Form 180, which is used for applying for approval of employee welfare funds under the Income Tax Rules, 2026. The form corresponds to earlier Form 9 under the 1962 Rules and is now governed by Section 11(3) read with Schedule VII of the Income-tax Act, 2025. It applies to funds established as trusts for the welfare of employees or their dependents, with employees as members. Approval is granted by the Principal Commissioner or Commissioner of Income Tax and allows the fund to obtain pass-through status, subject to prescribed conditions.

Form 180 must be filed electronically on the income tax e-filing portal using a digital signature or electronic verification code by the trustee or principal officer. While no statutory time limit is prescribed, it is advisable to file the form at least six months prior to the relevant tax year or expiry of existing approval. The application requires submission of trust deed, activity notes, financial statements, and other supporting documents.

The form includes details of the fund, employer organisation, trustees, contributions, and application of funds. Approval, if granted, is valid for a period not exceeding three tax years. In case of non-compliance with conditions, the application may be rejected after providing an opportunity of being heard. The revised form introduces structured data fields, PAN requirements, and simplified disclosures to improve compliance and verification.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 180 (Earlier Form No. 9): Application for grant of approval to a Employee Welfare fund referred to in Schedule VII [Table: Sl. No. 2]

Form of application for grant of approval to an employee welfare fund, as referred to in Schedule VII [Table: Sl. No. 2] of the Income-tax Act, 2025

Q1. What is Form 180 ?

Ans: Form 180 is prescribed for making an application by an employee welfare fund (i.e. a fund established for notified purposes for the welfare of employees or their dependents) to seek approval of the competent authority (i.e. the Principal CIT/CIT having jurisdiction). Such fund is required to be constituted as a Trust, with the employees being members thereof. This approval grants the fund a pass-through status under the Income-tax Act, meaning that income generated by the fund can be passed to the investors/members without the fund itself being taxed, subject to specific conditions.

Q2. Who should file Form 180?

Ans: Any Employee Welfare Trust seeking approval of the fund, or renewal thereof, is required to make an application in Form 180 to the Principal CIT/CIT having jurisdiction over the area or territory in which the account of the fund are kept. The form must be verified by the Trustee / Principal Officer of the Fund.

Q3. Where and how the Form 180 is required to be filed?

Ans: The Form 180 shall be filed on e-filing portal. The form shall be furnished electronically either under digital signature or through electronic verification code verified by the Trustee/Principal Officer of the Fund.

Q4. What is the time limit for filing Form 180?

Ans: The time limit for filing Form 180 has not been prescribed in the Income-tax Act, 2025, or in the Rules made thereunder. However, it is advisable to file the Form 180 at least six months prior to the commencement of the tax year from which the approval of the fund is sought to be made effective. In cases of renewal, the Form 180 should preferably be filed at least six months prior to the expiry of the period of the existing approval of the fund.

Q5. What documents are required to file Form 180?

Ans: The following documents may be required while filing Form 180, –

> A copy of instrument of trust evidencing the formation of the fund.

> Notes on activities of the fund for the period since its inception or during the last three years, whichever is less.

> Copies of accounts of the fund for the period since its inception or during the last three years, whichever is less.

> Copy of existing approval order (if any), in cases where renewal has been sought.

> Copy of rejection order, in cases where any application has been rejected in past.

Q6. Is Form 180 mandatory?

Ans: Form 180 is optional. It is filed only if the Employee Welfare Fund intends to seek approval of the fund, or renewal thereof, from the competent authority.

Q7. Can I edit Form 180 after submission?

Ans: No. Once Form 180 is submitted after verification, and acknowledgment is generated, it cannot be edited. Please ensure that all details are correct before submission.

Q8. Do I need to attach any document with the Form 180?

Ans: The following documents are mandatory to be attached, as required at Serial Number 16 (Part B) of the Form 180, –

> AnnexureA1 – A copy of instrument of trust evidencing the formation of the fund

> AnnexureA2- Notes on activities of the fund for the period since its inception or during the last three years, whichever is less

> AnnexureA3 – Copies of accounts of the fund for the period since its inception or during the last three years, whichever is less

Q9. While filling Part A, can I leave any field blank?

Ans:

> PAN of the applicant Trust/fund is mandatory.

> An updated Email address and Mobile number would ensure faster communication and verification; therefore it is recommended to provide it.

Q10. What if the fund does not have a PAN?

Ans: Form 180 cannot be submitted without a valid PAN of the Trust/fund, as also valid PAN of the employer organization.

Q11. Can Form 180 be filed offline?

Ans: No. Form 180 can only be submitted online through the Income Tax e-Filing portal.

Q12: Why is Form 180 important?

Ans: Filing of an application in Form 180 is mandatory for getting approval of the Employee Welfare Fund from the competent authority. Such approval confers the benefit of tax exemption on the fund, in respect of any income received by the fund, subject to fulfillment of certain conditions.

Q13. Whether a fund set up for welfare of retired employees can seek approval by filing Form 180?

Ans. No. A fund set up for notified purposes, for the welfare of serving employees or their dependents only, is eligible to seek approval of the competent authority for claim of exemption.

Guidance Note on Income Tax Form 180 (Earlier Form No. 9): Application for grant of approval to a Employee Welfare fund referred to in Schedule VII [Table: Sl. No. 2]

Form 180 – Form for making application to seek approval of an employee welfare fund under section 11(3) read with Schedule VII [Table: Sl No. 2] of the Act

Purpose:

Form 180 is prescribed under Rule 286 of the Income Tax Rules, 1962 and is required to be filed for claiming exemption under Section 11(3) read with Schedule VII  [Table: Sl No. 2] of ITA 2025, by a fund established for notified purposes for the welfare of employees or their dependents. Such fund is required to be form under a Trust and the employees are members of the fund.

The form is used by an employer establishment to apply for recognition and approval of its Employee Welfare Fund by the PCIT/CIT. The recognition grants the fund a pass-through status under the Income-tax Act, meaning that income generated by the fund can be passed to the investors/members without the fund itself being taxed, subject to specific conditions.

This form provides for the columns for furnishing information about the fund for verification and satisfaction of the PCIT/CIT before granting approval.

The form must be verified by the Trustee / Principal Officer of the Fund. Who Should File:

The Employee Welfare Trust seeking approval of the fund, or renewal thereof, under Section 11(3) read with Schedule VII [Table: Sl No. 2] of ITA 2025, is required to make an application in Form 180 to the PCIT/CIT having jurisdiction over the area or territory in which the account of the fund are kept.

When and How to File:

• The form shall be filed on e-filing portal.
• The form shall be furnished electronically either under digital signature or through electronic verification code verified by the Trust / Fund.
• The e-form shall have to be furnished by such Trusts / Funds, who are claiming exemption under Section 11(3) read with Schedule VII [Table: Sl No. 2]of ITA 2025.

Filing Count:

The number of Forms 180 filed over the past five years is 442.

Structure of Form 180:

The form consists of the following parts:

Part A – Particulars of the applicant Trust/ Fund

• Name, Address and PAN, contact details

Part B – Other Information

• Name and PAN of the employer organisation
• Objects of the Fund as per the Trust Deed.
• Details of trustees/ office bearers of the Fund
• Classes and no. of employees admitted to the Fund.
• Details of contribution to the fund, and income accrued
• Details of application or accumulation of funds.
• Formal verification by the applicant.

Documents required to file Form 180

• A copy of instrument of trust evidencing the formation of the fund.
• Notes on activities of the fund for the period since its inception or during the last three years, whichever is less.
• Copies of accounts of the fund for the period since its inception or during the last three years, whichever is less.

What is the process flow of filing Form 180?

The process flow includes following steps:

• Prepare the application: Fill Form 180, ensuring all columns are complete with accurate details.
• Attach mandatory documents.
• Sign/verify: Application, annexures, and all attached statements must be signed or digitally signed by the Trustee / Principal officer of the Fund.
• Submit online on the e-filing portal.

Outcome of Processed Form 180:

• Where the PCIT/CIT is satisfied that all the conditions laid down in Schedule VII [Table: Sl. No.2] are fulfilled in the case of the fund, he shall record such satisfaction in writing and grant approval to the fund specifying the tax year(s) for which the approval is valid.
• The period of validity of such approval, however, shall not exceed 3 tax years.
• Where the Principal CIT/CIT is satisfied that one or more of the conditions laid down in Schedule VII [Table: Sl. No.2] are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing. But no order of rejection of an application shall be passed without giving an opportunity of being heard.

Key updates include the following:

• Name and PAN of the Trust / Fund (set up for the notified purposes) is proposed to be captured, in addition to existing details of employer organization.
• Drop down has been provided to select objects of the Trust (out of the list of purposes notified by the Board for welfare of employees)
• PAN of the Trustee(s) for accurate identification.
• The requirement of mentioning details of assessment ward/circle has been done away with.
• The details of investments / deposits other than the specified modes is also proposed to be captured, for better regulatory control.

Improved Applicant Experience, Expedited Process:

The language of the Form has been simplified. The data fields sought to be captured have been rationalized and standardized, viz. dropdown for objects of the Trust, simplification of employee disclosure etc.

Challenges, Solutions and suggestions:

> Challenges in Old Form 180:

In the original form, the primary details (Name and PAN) of the Trust/Fund itself was not being captured. Further, there was no column for reporting PAN of Trustees, thereby rendering the entire data captured in the Form of limited use for Database purposes. Objects of the trust were required to be entered manually, against which most of the applicants used to mention “as per the Trust deed“. Thus, the original form failed to capture the most relevant information, i.e. whether or not the objects of the Trust were as per the purposes notified by the Board.

> Solutions in New Form 180

These gaps have been adequately addressed by making qualitative changes in the proposed Form, as elaborated above.