Overview
With the implementation of the Income Tax Act, 2025, new reporting frameworks have been introduced to enhance transparency and compliance. One such important addition is Form 75, a statement of income provided by Venture Capital Funds (VCFs) or Venture Capital Companies (VCCs) to their investors.
Form 75 plays a crucial role in reporting income distributed by venture capital entities and ensures proper tax treatment under the pass-through taxation mechanism. It is directly linked with Section 222 of the Income Tax Act, 2025, replacing the earlier provisions under Section 115U of the 1961 Act.
What is Form 75?
Form 75 is a statement of income paid or credited by a Venture Capital Fund or Venture Capital Company to investors who are liable to tax under Section 222 of the Income Tax Act, 2025.
This statement helps investors understand the nature and taxability of income received from venture capital investments.
Who is Required to Issue Form 75?
- Form 75 is not filed independently.
- It is a child form of Form 74 (parent form).
- Venture Capital Funds/Companies must:
- File Form 74 first
- Generate Form 75 for each investor
- Provide it to the respective investors
This ensures individual-level reporting of income distribution.
Due Date for Form 75
Form 75 must be issued on or before 30th June of the financial year immediately following the tax year in which income is distributed.
Filing Process
- Form 75 is auto-generated from Form 74
- It is available through the Income Tax e-filing portal
- No manual filing or separate submission is required
- No additional documents need to be attached
This automation simplifies compliance for venture capital entities.
Importance of Form 75
For Venture Capital Funds/Companies
- Mandatory compliance requirement
- Ensures proper reporting of distributed income
- Helps avoid penalties for non-compliance
For Investors
- Provides detailed income classification (capital gains, dividends, other income)
- Enables accurate reporting in ITR forms (ITR-2, ITR-3, ITR-5, ITR-6, ITR-7)
- Income is taxed under the pass-through mechanism
- Income retains its original nature and tax treatment
This makes Form 75 a critical document for tax compliance and reporting.
Key Takeaways
- Form 75 is a derived statement, not independently filed
- Linked to Form 74 and Section 222
- Mandatory for Venture Capital Funds/Companies
- Must be issued by 30th June each year
- Essential for investors to correctly report pass-through income
FAQs
Q1. What is Form 75?
Form 75 is a statement of income distributed by Venture Capital Funds or Companies to investors under Section 222 of the Income Tax Act, 2025.
Q2. Is Form 75 filed separately?
No, it is auto-generated from Form 74 and not filed independently.
Q3. Who issues Form 75?
Venture Capital Funds or Venture Capital Companies issue Form 75 to their investors.
Q4. What is the due date for Form 75?
It must be issued by 30th June following the relevant financial year.
Q5. Is offline filing allowed?
No, Form 75 is generated electronically via the Income Tax e-filing portal.
Q6. Why is Form 75 important for investors?
It helps investors report income correctly in their tax returns under the pass-through taxation system.
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