Form 59 - Income Tax

Form 59 is an Income Tax Application used to seek approval from the Income Tax Department for the issue of securities or shares by a public company under section 80C(2)(xix) or section 88(2)(xvi) of the Income-tax Act.

Any public company planning to issue securities or shares to the public and seeking tax benefits under the relevant sections of the Income-tax Act needs to file Form 59 for approval from the Income Tax Department.

By filing Form 59, a public company can obtain approval from the Income Tax Department for the issue of securities or shares, which allows the company and its investors to claim tax benefits under the specified sections of the Income-tax Act.

Form 59 requires details such as the company's name, registration number, address, particulars of the proposed issue, details of the company's directors, and other relevant information as specified in the form.

Form 59 needs to be filled out and submitted to the Income Tax Department, along with the required supporting documents and applicable fees, if any, as per the prescribed procedure.

While the form itself does not mention a specific time limit, it is advisable to file Form 59 well in advance of the proposed issue of securities or shares to obtain the necessary approval from the Income Tax Department in a timely manner.

The Income Tax Department may provide an option to file Form 59 electronically, depending on the prevailing rules and regulations. It is recommended to check the department's website or seek professional advice for the latest filing procedures.

If a public company issues securities or shares without obtaining approval through Form 59, it may not be eligible for the tax benefits under the specified sections of the Income-tax Act, and the company and its investors may face potential legal consequences.

The Income Tax Department may have specific guidelines or formats for the supporting documents required to be submitted along with Form 59, such as copies of registration certificates, memorandum of association, and other relevant documents.

In case of any changes or corrections required in the information provided in Form 59 after submission, the company may need to follow the prescribed procedure for revising or amending the form, subject to the Income Tax Department's guidelines and regulations.