Form 4: Income attributable to assets located in India under section 9(10)(a)
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Income attributable to assets located in India under section 9(10)(a).
The transferor obtains the prescribed accountant report on income attributable to Indian assets in the indirect-transfer situation governed by rule 12.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 3CT is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 12; Section 9(10). Physical PDF pp 286-287; printed Gazette pp 1818-1819.
Rule 12 — connected rule text
12. Determination of income attributable to assets in India. — (1) The income from transfer outside India of a share of, or interest in, a company or an entity referred to in section 9(10)(a) attributa ble to assets located in India, shall be determined with reference to the specified date, by the following formula: — A X B C Where, — [PDF PAGE 8] 1540 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] A = Income from the transfer of the share of, or interest in, the company or the entity computed as per the provisions of the Act, as if, such share or interest is located in India; B = fair market value of assets located in India as on the specified date from which the share or interest referred to in A derives its value substantially, computed as per rule 11; and C = fair market value of all the assets of the company or the entity as on the specified date, computed as per rule 11. (2) If the transferor of the share of, or interest in, the company or the entity referred to in sub -rule (1) fails to provide the information required for the application of the formula in the said sub -rule, then the income from the transfer of such share or interest shall be determined in such manner as the Assessing Officer may deem suitable. (3) The transferor of the share of, or interest in, a company or an entity referred to in sub -rule (1), shall obtain and furnish along with the return of income a report in Form No. 4 duly signed and verified by an accountant providing the basis of the apportionment as per the formula and cert ifying that the income attributable to assets located in India has been correctly computed.
Completed field illustration
Fictional data, not for filing. A fictional non-resident transfers an interest in a foreign entity; Indian-asset attribution is demonstrated in rupees.
| Form field / block | Completed fictional entry |
|---|---|
| Part A: name / address / PAN | Example Global Holdings Ltd / 10 Example Street, London / synthetic ZZZCE0000Z |
| Tax year | 2026-27 |
| Foreign entity and transferred interest | Example Overseas Ltd; 20% equity interest |
| Income from transfer before attribution | Rs 20,00,000 - assumed computed gain, not sale proceeds |
| Fair market value of assets located in India | Rs 12,00,00,000 |
| Fair market value of all assets | Rs 20,00,00,000 |
| Income attributable to Indian assets | Rs 12,00,000 |
| Valuation reference | Model valuation V-01, common valuation date 1 October 2026 |
| Accountant verification | Illustrative calculation only; NOT SIGNED |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 12,00,00,000 / 20,00,00,000 = 60%.
- 20,00,000 × 60% = 12,00,000.
- Indian assets exceed Rs 10 crore and represent at least 50% of all assets in these assumed valuation facts; separate exceptions and the charge still require review.
The scenario assumes the statutory indirect-transfer charge and valuation conditions are met; it does not infer them merely from this ratio.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 12. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 4 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.