The Income Tax Department has provided guidance on Form 189, which is required for applying for approval of issue of public companies under Schedule XV(1)(z)(i) of the Income tax Act 2025. The form must be filed by an assessee, specifically a public company, seeking approval for issuing eligible capital. Contributions made by individuals to such issues may qualify for deduction under section 123 of the Act. The application is required to be submitted along with prescribed documents at least three months before the proposed issue of eligible capital.
Form 189 captures detailed information about the company, including basic incorporation details, management structure, and particulars of directors and key personnel. It also requires disclosure of details relating to bankers and auditors, as well as specifics of the share issue such as number of shares, face value, premium or discount, and the purpose of the issue. Additionally, the form seeks information about infrastructure projects associated with the issue, including project nature, location, investment plans, and development schedule. Supporting documents include incorporation certificates, audited financial statements, accounting policies, SEBI approvals, and project reports.
The approval for issuing eligible capital is granted based on the details provided in Form 189. The revised format aligns with the provisions of the Income-tax Act, 2025 and incorporates updated terminology and structural changes in reporting requirements.
Income Tax Department
Ministry of Finance, Government of India
FAQs on Income Tax Form 189 (Earlier Form 59): Application for approval of issue of public companies under Paragraph 1(z)(i) of Schedule XV to Income tax Act 2025
Application for approval of issue of public companies under section Schedule XV(1)(z)(i) of the Income-tax Act, 2025
| Name of form as per I.T. Rules, 1962 | Form 59 | Name of form as per I.T. Rules, 2026 | 189 |
| Corresponding section of I.T. Act, 1961 | 80C(2)(xix) | Corresponding section of I.T. Act, 2025 | Schedule XV(1)(z)(i) |
| Corresponding Rule of I.T. Rules, 1962 | 20 | Corresponding Rule of I.T. Rules, 2026 | 331 |
Q1. What is Form 189?
Ans. Form 189 is required to be filed by an assessee to apply for approval of issue of public companies under section Schedule XV(1)(z)(i) of the Income-tax Act, 2025. The contribution to such issue by individuals is eligible for deduction u/s 123 of the Income-tax Act, 2025.
Q2. Who should file Form 189?
Ans. An assessee applying for approval of issue of public companies under section Schedule XV(1)(z)(i) of the Income-tax Act, 2025 should file Form 189.
Q3. What is the Due Date to file Form 189?
Ans. The form should be filed by the public company along with the documents as mentioned in the application form three months before the issue of eligible capital.
Q4. Why is Form 189 important?
The approval for issue of eligible capital as per Schedule XV(1)(z)(i) of the Income-tax Act, 2025 is granted based on details filed in Form 189.
Guidance Note Income Tax Form 189: Application for approval of issue of public companies under Paragraph 1(z)(i) of Schedule XV to Income tax Act 2025
Application for approval of issue of public companies under section Schedule XV(1)(z)(i) of the Income-tax Act, 2025
| Name of form as per I.T. Rules, 1962 | Form 59 | Name of form as per I.T. Rules, 2026 | 189 |
| Corresponding section of I.T. Act, 1961 | 80C(2)(xix) | Corresponding section of I.T. Act, 2025 | Schedule XV(1)(z)(i) |
| Corresponding Rule of I.T. Rules, 1962 | 20 | Corresponding Rule of I.T. Rules, 2026 | 331 |
Purpose :
Form 189 is required to be filed by an assessee to apply for approval of issue of public companies under section Schedule XV(1)(z)(i) of the Income-tax Act, 2025. The contribution to such issue by individuals is eligible for deduction u/s 123 of the Income-tax Act, 2025.
Who should file :
An assessee applying for approval of issue of public companies under section Schedule XV(1)(z)(i) of the Income-tax Act, 2025 should file this form.
Due Date:
The form should be filed by the public company along with the documents as mentioned in the form three months before the issue of eligible capital.
Structure of Form 189:
– Basic details of company — Name & address of company, incorporation details
– Management Details — Directors, experience, qualification, key personnel
– Details of the Bankers and Auditors — Name, Address
– Details of the issue of shares — number, face value, premium/discount, purpose
– Details of the infrastructure project for which shares are issued — nature and location, year wise investment, schedule of development, project report
What are the documents/information required to file Form 189?
The following documents/information are required to file form 189:
1. Copy of certificate of incorporation under Companies Act, 2013
2. Copy of latest audited financial statement along with last three years audited balance sheet
3. Description of significant accounting policies
4. Management details (Directors and Key personnel)
5. Details of equity including copy of SEBI approval for issue
6. Copy of project report if any.
Outcome of processed Form 189:
The approval for issue of eligible capital as per Schedule XV(1)(z)(i) of the Income-tax Act, 2025 based on details filed in Form 189.
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 “Z”.
