The Income Tax Department has introduced Form 188 as a structured application for obtaining approval of gratuity funds and superannuation funds under Part B of Schedule XI of the Income-tax Act, 2025. The form replaces earlier procedural requirements contained in Rules 95 and 109 of the Income-tax Rules, 1962, which previously required submission of information in text format. Form 188 consolidates the process for both types of funds and is required to be filed by trustees or authorised representatives, as the fund is treated as a distinct legal entity. The form is filed once at the stage of seeking initial approval and requires details of the employer, fund, eligible employees, maintenance of accounts, and current status of the fund. Supporting documents such as the trust deed, fund rules, financial statements, and balance sheet must be submitted along with the application. After submission, the competent authority examines the application, may seek additional information, and decides whether to grant approval, issue a deficiency notice, or reject the application. Approval results in issuance of a certificate enabling eligibility for tax benefits, while rejection is communicated with reasons and may be appealed.
Income Tax Department
Ministry of Finance, Government of India
FAQs on Income Tax Form 188: Application for approval of superannuation fund or gratuity fund
Form for Approval of Gratuity Fund / Superannuation Fund
Q.1 What is the purpose of the new Form 188?
Ans. Form 188 has been introduced to provide a standardised and structured application mechanism for seeking approval of a Gratuity Fund or a Superannuation Fund under Part B of Schedule XI to the Income-tax Act 2025 . The Form replaces the earlier text-based procedural requirements contained in Rule 95 (Gratuity Funds) and Rule 109 (Superannuation Funds) of the Income-tax Rules 1962.
Q.2 Why was a separate Form introduced instead of continuing with Rules 95 and 109 of Income Tax Rules 1962?
Ans. Earlier, the information required for approval was embedded within the Rules themselves. Introducing a separate Form simplifies compliance, reduces textual complexity in the Rules, ensures uniformity of information, and facilitates future migration to an online filing system.
Q.3 Is this Form applicable to both Gratuity Funds and Superannuation Funds?
Ans. Yes. Since the procedural requirements for approval of Gratuity Funds and Superannuation Funds were identical under the erstwhile Rules 95 and 109, a single consolidated Form has been prescribed for both types of funds.
Q.4 Who is required to file Form 188?
Ans. The Form must be filed by the trustees of the Fund or by an authorised person acting on behalf of the trustees. As the Fund is treated as a distinct legal entity, the responsibility for filing and compliance rests with the trustees.
Q.5 When is Form 188 required to be filed?
Ans. Form 188 is required to be filed only once, at the time of seeking initial approval for a new or existing Gratuity Fund or Superannuation Fund.
Q.6 What information is required to be furnished in Form 188 ?
Ans. The Form broadly requires the following particulars:
- Details of the employer (name, address, nature of business)
- Details of the Fund (Name, PAN, Date of creation and Type)
- Classes and number of employees eligible for the Fund
- Place where Fund accounts are maintained
- Status of the Fund, including existing investments (if any)
- Declaration and verification by the trustees
Q.7 What documents are required to be submitted along with Form 188 ?
Ans. The following documents are required to be enclosed:
1. Trust Deed constituting the Fund.
2. Fund Rules governing its administration.
3. Copy of the accounts of the fund relating to previous years (if the Fund is already functional).
4. Copy of the Balance sheet of the fund as on 31st March of the financial year preceding the date of Application, if the fund is already in existence.
Q.8 Where should Form 188 be submitted?
Ans. The Form is to be submitted to the jurisdictional Authority .
Q.9 What is the process after submission of Form 188 ?
Ans. Upon submission:
1. The application is examined by the competent authority.
2. Clarifications or additional information may be sought, if required.
3. A decision is taken to grant approval, issue a deficiency notice, or reject the application.
Q.10 What is the outcome if approval is granted?
Ans. On approval, the Fund is granted a Certificate of Approval, making it eligible for the tax benefits provided under the Income-tax Act in respect of approved Gratuity Funds or Superannuation Funds.
Q.11 Does the introduction of Form 188 change the substantive conditions for approval?
Ans. No. The Form does not alter the substantive conditions for approval. It only reorganises and standardises the manner in which information is furnished, without changing the underlying legal requirements under Schedule XI.
Q.12 Can Form 188 be filed electronically?
Ans. Where electronic filing has been notified, Form 188 is required to be filed electronically in the manner specified by the Board. Until such notification, filing shall be done in the prescribed mode.
Q.13 What happens if approval is not granted?
Ans. If approval is not granted, the reasons are communicated to the applicant. The applicant may file appeal against the order as per the law.
Guidance Note on Income Tax Form 188: Application for approval of superannuation fund or gratuity fund
NOTE ON THE INTRODUCTION OF NEW FORM FOR APPROVAL OF GRATIAUITY FUND /
SUPERANNUATION FUND
(Amendment in Rule 95 and Rule 109 of the Income-tax Rules)
1. Purpose
This new Form has been introduced to streamline and standardise the process for seeking approval of a Gratuity Fund or Superannuation Fund under Part B of Schedule XI. Previously, the application particulars were embedded in text format within Rule 95 (Gratuity Funds) and Rule 109 (Superannuation Funds) of the Income-tax Rules, and no dedicated Form existed. These textual requirements now have been removed from the Rules and incorporated into a separate Form for greater clarity and ease of compliance.
Introducing these provisions in a structured Form format simplifies compliance, reduces textual complexity in the Rules, and ensures uniformity in the information submitted. Since the procedural requirements under the earlier Rules 95 and 109 were identical, therefore, a single consolidated Form has been proposed for both funds.
2. Who Should File
The Form must be filed by the trustees of the Fund or any authorised person acting on behalf of the Trust. Since the Fund is a distinct legal entity, the responsibility for submission and compliance rests with the trustees.
3. Frequency & Due Dates
The Form is required to be filed only at the time of seeking initial approval for a new Gratuity Fund or Superannuation Fund.
4. Structure of This Form
The Form broadly contains:
- Details of the Employer (name, address, nature of business).
- Details of the Fund (Name, PAN, Date of creation and Type)
- Classes and Number of Employees eligible for the Fund.
- Place of Maintenance of Fund Accounts.
- Current Status of the Fund (including whether investments exist).
- Declaration and Verification by the trustees.
This structure replaces the information previously prescribed under Rule 95 and Rule 109.
5. Documents Required
The following documents must accompany the Form:
1. Trust Deed constituting the Fund.
2. Fund Rules governing its administration.
3. Copy of the accounts of the fund relating to previous years (if the Fund is already functional).
4. Copy of the Balance sheet of the fund as on 31st March of the financial year preceding the date of Application, if the fund is already in existence.
5. Any other supporting document required by the competent authority.
6. Process Flow of Filing
1. Preparation of the Form by trustees.
2. Compilation of the mandatory documents.
3. Submission before the jurisdictional Pr. CCIT / CCIT / PCIT / CIT.
4. Examination and verification of details.
5. Seeking clarifications wherever required.
6. Decision on grant or rejection of approval.
7. Outcome of Processed Form
After examination, the competent authority may:
- Grant the Certificate of Approval / Registration to the Gratuity Fund or Superannuation Fund, OR
- Issue a deficiency notice, OR
- Reject the application if conditions under Schedule XI are not satisfied.
Approval confers eligibility for tax benefits provided under the Income-tax Act.
