Form 164 for Film Producers and Form 163 for Indian Concerns: Income Tax Act 2025 (Sections 506 and 507)

The Income Tax Act 2025 has two information-return provisions that most guides skip. Section 507 requires producers of cinematograph films, and people running a "specified activity" such as event management or OTT programme production, to file Form 164 listing every person they paid or owe more than Rs 50,000 in the tax year, within 60 days of the year end. Section 506 requires an Indian concern, when its foreign parent's shares are transferred, to file Form 163 within 90 days.

They sit in the same part of the Act but serve different purposes, so this guide takes them one at a time. Every figure comes from the Act (as amended by the Finance Act, 2026) and the Income-tax Rules, 2026, with the section or rule number beside it. Last reviewed on 10 November 2026.

What is the statement a film producer must file under section 507?

Section 507(1) says any person carrying on the production of a cinematograph film, or engaged in any specified activity, or both, during the whole or any part of a tax year must furnish a statement to the prescribed income-tax authority. Rule 236(1) prescribes Form No. 164, one for each tax year.

The statement lists payments. Section 507(2) says it must contain particulars of all payments of over Rs 50,000 in the aggregate, made or due, to each person engaged by the producer in the production or specified activity. "Due" means an unpaid amount counts too.

Which activities count as a "specified activity"?

Section 507(3) defines it as any of the following:

• event management;
• documentary production;
• production of programmes for telecasting on television or over-the-top (OTT) platforms or any similar platform;
• sports event management;
• other performing arts; or
• any other activity the Central Government specifies by notification.

The text says "similar platform" and "other performing arts" without further definition, so a borderline business should check the wording with its CA rather than assume it is outside the section.

When is Form 164 due and who receives it?

Point	Rule	Detail
Form	Rule 236(1)	Form No. 164, for each tax year
Due date	Rule 236(2)	Within 60 days from the end of the tax year
Filed with	Rule 236(3)	Director General of Income-tax (Systems) or a person authorised by him
Onward step	Rule 236(4)	The DGIT (Systems) forwards Form 164 to the Assessing Officer
Reportable payment	Section 507(2)	Over Rs 50,000 in aggregate, per person engaged

For tax year 2026-27 (1 April 2026 to 31 March 2027), 60 days from 31 March 2027 ends on 30 May 2027 (30 days in April plus 30 days in May).

Which payments go into Form 164? Two worked examples

The test applies to the aggregate paid or due to each person for the year, not to each invoice. Assume tax year 2026-27 and a production house that made a web series for an OTT platform.

	Case 1: cameraperson	Case 2: music composer
Payment 1 (paid)	Rs 28,000	Rs 30,000
Payment 2 (paid)	Rs 17,000	Rs 15,000
Payment 3 (paid)	Rs 9,000	Nil
Balance due at year end	Nil	Rs 7,000
Aggregate paid or due	28,000 + 17,000 + 9,000 = Rs 54,000	30,000 + 15,000 + 7,000 = Rs 52,000
More than Rs 50,000?	Yes	Yes, because the Rs 7,000 due counts
In Form 164?	Yes	Yes

Had the composer's balance not been counted, the total would be Rs 45,000 and the person would have been missed. A third person paid Rs 50,000 exactly would stay out, since the Act says "over" Rs 50,000.

Worked example 2: how many people make the list?

A production house paid these aggregates to its crew in 2026-27. Reportable means over Rs 50,000.

1. Sound engineer: Rs 50,000. Not over the limit, so not reported.
2. Editor: 40,000 + 25,000 = Rs 65,000. Reported.
3. Costume vendor: 22,000 + 18,000 = Rs 40,000. Not reported.
4. Lead artist: 3,00,000 + 1,50,000 = Rs 4,50,000. Reported.

Form 164 for the year carries two people: the editor and the lead artist.

Real-life scenarios for section 507

Ravi runs a small event company. He organises a corporate sports tournament and pays a commentator Rs 80,000 and a stage crew Rs 35,000. Sports event management is a specified activity under section 507(3), so Ravi files Form 164 for the year. The commentator is listed. The crew is not, unless the crew's total with Ravi crosses Rs 50,000.

Meena produces a documentary on handloom weavers over two tax years. Documentary production is a specified activity. She files a separate Form 164 for each tax year (rule 236(1)), and checks the Rs 50,000 limit for each person separately in each year.

What is section 506 and who is an "Indian concern"?

Section 506 deals with offshore deals that move India-based value. Under section 9(10)(a), a share of, or interest in, a company or entity registered outside India is treated as situated in India if it derives its value substantially, directly or indirectly, from assets located in India. Section 506 applies when two conditions hold:

1. the foreign company or entity's share or interest derives its value substantially from Indian assets, as referred to in section 9(10)(a); and
2. that foreign company or entity holds those Indian assets, directly or indirectly, through or in an Indian concern.

The Indian concern must then furnish information and documents to the prescribed authority within the prescribed period, so the tax department can work out any income accruing in India under section 9. The Act does not define "Indian concern" in sections 506 or 9(10); read it as the India-based business that holds the assets.

When is value "substantial" under section 9(10)(b)?

Section 9(10)(b) sets a two-part test measured on the "specified date". Both parts must be met:

• the value of the Indian assets exceeds Rs 10 crore; and
• those assets represent at least 50% of the value of all assets the company or entity owns.

Under 9(10)(c), asset value is fair market value on the specified date, without reducing liabilities relating to the asset. Under 9(10)(d), the specified date is the end of the accounting period preceding the transfer, or the date of transfer itself if book value of assets on that date is more than 15% above the book value at that earlier date.

Worked example 3: the value test

	Foreign holdco A	Foreign holdco B
Fair market value of Indian assets	Rs 12 crore	Rs 9 crore
Fair market value of all assets	Rs 20 crore	Rs 12 crore
Exceeds Rs 10 crore?	12 > 10, yes	9 < 10, no
Share of Indian assets	12 / 20 = 60%, at least 50%: yes	9 / 12 = 75%, at least 50%: yes
Value derived substantially from India?	Yes	No, the Rs 10 crore test fails

Only holdco A's shares are deemed situated in India. Holdco B passes the percentage test but fails the amount test, so section 9(10)(a) does not bite on this basis.

Two carve-outs in 9(10)(g) are worth knowing: investments held through Category I or II foreign portfolio investors (Category I only under the 2019 regulations), and a transferor that, at any time in the 12 months before the transfer, held no management or control and no more than 5% of voting power, share capital or interest in a company that directly owns the Indian assets. A separate sub-clause applies a similar test where the Indian assets are owned indirectly. Read the full clause for the exact conditions.

What must the Indian concern file and by when?

Rule 235(2) requires Form No. 163, filed electronically under digital signature with the Assessing Officer having jurisdiction over the Indian concern. There are two clocks:

Situation	Deadline (rule 235(2))
Any transfer of the foreign share or interest during the financial year	90 days from the end of that financial year
The transfer has the effect, directly or indirectly, of transferring rights of management or control of the Indian concern	90 days from the date of that transaction

For a transfer during 2026-27, the year ends on 31 March 2027, and 90 days later is 29 June 2027 (30 in April, 31 in May, 29 in June). If a transaction on 10 December 2026 shifts control of the Indian concern, the clock is 90 days from that date: 21 days left in December, 31 in January and 28 in February is 80, plus 10 in March, so 10 March 2027.

Meena's group example. A Singapore holding company owns an Indian manufacturing company with assets worth Rs 15 crore, which is 70% of the Singapore company's assets. A foreign investor buys the Singapore company's shares on 10 December 2026, and that purchase hands over management control of the Indian company. The Indian company must file Form 163 by 10 March 2027, not wait for the year end.

What records must the Indian concern keep?

Rule 235(3) requires the concern to maintain, with English translation where needed, and produce on request in any proceeding, among other items:

• details of the immediate, intermediate and ultimate holding companies or entities;
• details of other Indian entities of the same group;
• the holding structure of the foreign company's shares before and after the transfer;
• the transfer contract or agreement;
• the foreign company's financial and accounting statements for two years before the transfer;
• valuation reports for the Indian asset and total assets, certified by a merchant banker or accountant (the clause cross-refers to the definition in section 515(3)(b));
• details of tax paid outside India on the transfer, and documents issued in connection with the transaction.

Rule 235(3) lists further items on decision process, business operations, personnel and the basis of consideration. Rule 235(7) requires these to be kept for eight years from the end of the relevant tax year.

Can one Indian concern file for the whole group?

Yes, under rule 235(4), if the group has designated one Indian concern to furnish the information for all its Indian concerns, and that designation has been conveyed in writing to the Assessing Officer. Rule 235(5) adds a warning: if the designated concern fails to furnish in accordance with the rule, the relief of single filing does not apply. "Group" and "constituent entity" take their meaning from section 511(10) (rule 235(8)). The DGIT (Systems) then sends a copy of Form 163 to the Assessing Officer of the transferor whose income is chargeable under section 9(10) (rule 235(6)).

Quick reference: Form 164 versus Form 163

	Form 164 (section 507)	Form 163 (section 506)
Who files	Film producer or person in a specified activity	Indian concern holding assets for a foreign entity
Trigger	Payments over Rs 50,000 to a person in the tax year	Transfer of a foreign share or interest deriving value from India
Deadline	60 days from end of tax year	90 days from end of financial year, or from the transaction if control shifts
Filed with	DGIT (Systems) or authorised person	Assessing Officer, electronically with digital signature
Rule	Rule 236	Rule 235

Common mistakes

1. Testing each invoice instead of the total. The Rs 50,000 limit in section 507(2) is on the aggregate per person for the year.
2. Ignoring amounts due. Section 507(2) covers payments made or due, so an unpaid balance at year end counts.
3. Assuming only film producers are covered. Event managers, documentary makers, OTT programme producers and sports event managers are all in section 507(3).
4. Waiting for the year end for Form 163. If the transfer shifts management or control of the Indian concern, the 90 days run from the transaction.
5. Not keeping the valuation and transfer papers. Rule 235(7) requires eight years of retention.
6. Skipping the written designation in a group. Rule 235(4) allows single filing only if the designation was conveyed to the Assessing Officer in writing.

What is the penalty for not filing Form 164 or Form 163?

Form 164 (section 507). Under section 465(2)(c), a person who fails to furnish the statement in due time is liable to a penalty of Rs 500 for every day the failure continues. The penalty is imposed by the Joint Director or Joint Commissioner (section 465(4)(d)). Example: a production house files for tax year 2026-27 on 19 June 2027, which is 20 days after the 30 May 2027 due date. Penalty exposure is 20 x Rs 500 = Rs 10,000.

Form 163 (section 506). Under section 458, the prescribed income-tax authority may direct the Indian concern to pay 2% of the value of the transaction if it had the effect of transferring management or control of the Indian concern, and Rs 5,00,000 in any other case. For a Rs 50 crore control-shifting transaction, 2% is Rs 1 crore.

Where this is in the Act

• Section 507(1): who files; section 507(2): Rs 50,000 aggregate; section 507(3): specified activity.
• Rule 236(1) to (5): Form No. 164, 60 days, DGIT (Systems), forwarding to the Assessing Officer.
• Section 506: Indian concern information duty; section 9(10)(a) to (g): indirect transfer rules and the Rs 10 crore and 50% test.
• Rule 235(2) to (8): Form No. 163, 90 days, records, group filing, eight-year retention.
• Section 465(2)(c): Rs 500 per day for a late Form 164; section 458: penalty for Form 163 default.

How do CA firms track these statements?

Clients in media, events and cross-border groups tend to forget these statements because no tax is deducted along with them. Finexo's practice management software lets a CA firm keep a recurring task and due date per client for filings like these. It does not prepare or file the forms. For the deduction side of payments to crew, see our guide to TDS on rent under the same Act.

This article explains the Income-tax Act, 2025 (as amended by the Finance Act, 2026) and the Income-tax Rules, 2026. It is general information, not tax advice. See the penalty list for other defaults; confirm the position for a specific case with a qualified chartered accountant.