Form 75 Under Section 222 of Income Tax Act 2025: A Comprehensive Guide for Venture Capital Companies, Funds, and Investors

Overview and Introduction

The Income Tax Act, 2025 has introduced a structured framework for pass-through taxation of income distributed by Venture Capital Companies and Venture Capital Funds to their investors. A critical instrument within this framework is Form 75 — a newly notified investor-specific income statement prescribed under Rule 145 of the Income-tax Rules, 2026, corresponding to Section 222 of the Income-tax Act, 2025 (which replaces Section 115U of the Income-tax Act, 1961).

This form plays a pivotal role in ensuring that income flowing from Venture Capital Undertakings reaches investors with its original character intact — whether as capital gains, dividends, or other income — and is correctly reported in their individual Income Tax Returns. Understanding Form 75 is essential for both fund managers and investors seeking compliance clarity under the new tax architecture.

Statutory and Regulatory Framework

Before diving into the operational details, it is useful to understand where Form 75 sits within the broader legal structure:

Form 75 is a newly introduced form that addresses a longstanding gap in the Income-tax Rules, 1962 — the absence of an investor-level child form corresponding to the parent Form 64. Under the revised rules, Form 75 serves as the child form to parent Form 74, and is prepared and distributed by Venture Capital Companies (VCC) or Venture Capital Funds (VCF) to each individual assessee who is liable to tax on such pass-through income.

What Exactly Is Form 75?

Form 75 is a statement of income paid or credited by a Venture Capital Company or Venture Capital Fund to a person who is liable to tax under Section 222 of the Income-tax Act, 2025. It is generated on a per-investor basis and provides a granular breakdown of all income distributed or deemed to have been distributed during the relevant tax year.

Key Concept: Form 75 is not an independently filed form. It is a child form that is automatically derived from data submitted in the parent Form 74 through the income tax e-filing portal as specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

The critical distinction here is that this form is not filed by the investor — rather, it is generated by the VCC or VCF after filing Form 74, and then furnished to each assessee (investor/unit holder) within the prescribed due date.

Who Prepares Form 75 and Who Receives It?

Preparers: Venture Capital Companies and Funds

Any SEBI-registered Venture Capital Company (VCC) or Venture Capital Fund (VCF) that has paid, credited, or deemed to have credited income to investors from Venture Capital Undertakings during the tax year is responsible for:

• Filing the parent Form 74 on the income tax e-filing portal
• Generating investor-specific Form 75 statements from the portal
• Distributing the generated Form 75 to each respective assessee

Recipients: Investors / Unit Holders

Form 75 is received by assessees who are investors or unit holders in a VCC or VCF and who are liable to tax on pass-through income under Section 222. These individuals or entities are required to use the information in Form 75 to accurately populate Schedule PTI (Pass Through Income) in their applicable ITR forms.

Investors filing any of the following return forms are directly impacted: