Form No. 1 for July 2026: Stock Exchange Reporting of Modified Client Codes

Form No. 1 under the Income-tax Rules, 2026 is a mandatory monthly statement for stock exchanges reporting transactions where client codes have been modified after the transaction was registered in the system. For transactions modified during July 2026, the statement is due by 15 August 2026.

What is Form No. 1?

Form No. 1 is prescribed under Rule 4 of the Income-tax Rules, 2026. It replaces Form No. 3BB under the earlier Income-tax Rules, 1962.

The Income Tax Department describes Form No. 1 as a monthly statement to be furnished by a stock exchange in respect of transactions where client codes have been modified after registration in the system. The requirement covers transactions in both the cash and derivative markets.

The Income-tax Rules, 2026 were notified by CBDT through Notification No. 22/2026 dated 20 March 2026, vide G.S.R. 198(E), and came into force from 1 April 2026. (Income Tax India)

Who is Required to File?

Form No. 1 is required to be filed by a stock exchange falling within the meaning of Section 2(92) of the Income-tax Act, 2025.

The reporting requirement is particularly relevant where a client code recorded in the exchange's system is subsequently modified. The Income Tax Department's guidance confirms that the form is mandatory for such modifications in cash and derivative market transactions. (Income Tax India)

Due Date for July 2026

Form No. 1 must be furnished within 15 days from the last day of the month to which the statement relates.

Accordingly:

• Reporting month: July 2026

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• Period covered: Client-code modifications made during July 2026

• Due date: 15 August 2026

The same due date is reflected in the July 2026 statutory compliance calendars. (Income Tax India)

Information to be Reported

The Income Tax Department's Form No. 1 user manual requires transaction-level information, including:

• Transaction ID

• Broker's name and ID

• Original client code and client details

• PAN of the original client

• Modified client code and client details

• PAN of the modified client

• Scrip or commodity derivative details

• Quantity and transaction rate

• Total transaction value

• Whether the transaction is a buy or sale

• Date of transaction

• Date of modification

The date of modification must fall within the month selected for filing the form. (Income Tax Department)

Important Compliance Points

Stock exchanges should ensure that:

1. All client-code modifications made during July 2026 are identified.

2. Original and modified client details are properly reconciled.

3. PAN and client-code information is verified.

4. Transaction values, dates and buy/sale details are checked.

5. The relevant cash and derivative market transactions are completely reported.

6. The statement is filed electronically through the Income Tax e-filing portal within the prescribed time.

The official guidance also states that the stock exchange is required to maintain a complete audit trail of cash and derivative transactions. (Income Tax India)

Form No. 1 Under the New Income-tax Framework

Form No. 1 represents the transition from Form No. 3BB under the Income-tax Rules, 1962 to the new framework applicable from 1 April 2026. The Income Tax Department's guidance notes that the new form retains the principal reporting requirements while incorporating commodity derivative information in the derivative-market reporting section. (Income Tax India)

Conclusion

Stock exchanges should complete their July 2026 reconciliation of client-code modifications and ensure that Form No. 1 is accurately furnished by 15 August 2026. Timely reporting and proper maintenance of transaction records can help ensure compliance with the new Income-tax Rules, 2026.

For expert guidance on this topic, contact your tax professional today.

EXCERPT: Form No. 1 for July 2026 must be filed by stock exchanges by 15 August 2026 for reportable client-code modifications.

SEO_TITLE: Form No. 1 July 2026: Due Date & Compliance

SEO_DESCRIPTION: Learn Form No. 1 requirements for July 2026 and the 15 August due date. Review key reporting details and ensure timely compliance.