The Income-tax Department has introduced Draft Form No. 166 prescribing the format for filing the Statement of Reportable Account under Section 508(1) of the Income-tax Act, 2025.
The proposed form lays down a comprehensive reporting structure for financial institutions and other reporting entities required to furnish details of reportable accounts.
The draft format is expected to strengthen transparency, cross-border tax reporting, and regulatory data accuracy.
Structured Reporting Framework in Draft Form No. 166
Draft Form No. 166 is divided into two major parts:
Part A: Statement Details
This section captures:
- Reporting Entity Name and Identification Number
- Global Intermediary Identification Number (GIIN)
- Registration details and reporting entity category
- Statement type, statement number, and reporting period
- Correction reasons and report types
This portion ensures that each submission is uniquely identifiable and traceable.
Part B: Report Details (Account-Level Information)
Part B requires detailed reporting for each account being reported. It includes:
1. Account Information
- Account number, type, and category
- Account holder name and status
- Self-certification and documentation status
- Joint account details
- Date of closure (if applicable)
2. Branch Details
- Branch reference number
- Address, contact details, and country/state codes
3. Account Summary
- Year-end account balance or value
- Aggregate gross interest and dividend paid
- Gross proceeds from sale of property
- Other income credited
- Aggregate credits and debits
Individual, Entity & Controlling Person Disclosures
The draft form introduces extensive disclosure requirements depending on the nature of the account holder:
Individual Account Holder Details
- PAN and Aadhaar
- Nationality and tax residency
- Tax Identification Number (TIN)
- Occupation and date of birth
- Address and contact information
Legal Entity Account Holder Details
- Constitution type and incorporation details
- Nature of business
- PAN and foreign identification numbers
- Country of residence and incorporation
- TIN and issuing country
Controlling Person Details
Where the account holder is an entity, reporting must also include information of controlling persons, including:
- PAN/Aadhaar
- Nationality and tax residency
- TIN details
- Occupation and identification information
Compliance Implications
The detailed reporting architecture in Draft Form No. 166 suggests a strong alignment with global tax transparency frameworks such as FATCA and CRS-style disclosures. Financial institutions and reporting entities will need to:
- Upgrade compliance systems
- Ensure accurate self-certification processes
- Strengthen KYC documentation
- Validate tax residency and TIN data
Given the granular level of information required, early system preparedness will be crucial once the form is notified in its final form.
What Stakeholders Should Do
Banks, financial institutions, NBFCs, and other reporting entities should:
- Review internal reporting systems
- Map data fields with Draft Form No. 166 requirements
- Train compliance teams
- Monitor further notifications for final implementation timelines
The draft indicates a move towards more structured and digitally standardized financial reporting under the Income-tax Act, 2025
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