Income Tax Act 2025: Gift Tax Provisions, Exempt Relatives and Gifts

Gift Tax under the New Income Tax Act, 2025: Tax-Free Gifts and Relatives Explained

The New Income Tax Act, 2025 introduces Section 92, which governs the taxation of gifts received by individuals, Hindu Undivided Families (HUFs), and other persons. This provision replaces the earlier Section 56(2)(x) of the Income Tax Act, 1961 and offers a more organised and comprehensive framework for taxing gifts involving money, movable assets and immovable property.

In India, every gift is not taxable. Whether a gift attracts tax depends on several factors, including:

• The value of the gift

• The relationship between the giver and the recipient

• The nature of the asset received

• The occasion on which the gift is received (marriage, inheritance, will, etc.)

This guide explains the scope of Section 92, covering taxable situations, exemptions, valuation rules, clubbing provisions and practical examples.

Meaning of Gift under Section 92

Under Section 92, a gift includes money, movable property or immovable property received:

• Without consideration, or

• For inadequate consideration

If the value of such gift exceeds ₹50,000, it becomes taxable as income, unless it qualifies for an exemption specified under Section 92(3).

When Are Gifts Taxable? (Section 92(2)(m))

1. Monetary Gifts from Non-Relatives

If total cash or monetary gifts received from non-relatives exceed ₹50,000 in a financial year, the entire amount becomes taxable.

Example:
₹20,000 from one friend + ₹40,000 from another friend
Total = ₹60,000 → Fully taxable

2. Immovable Property (Land or Building)

a) Received without consideration
If the stamp duty value (SDV) exceeds ₹50,000, the entire SDV is taxable.

b) Received for inadequate consideration
The difference between SDV and actual consideration is taxable if it exceeds:

• ₹50,000, or

• 10% of consideration (whichever is higher)

Example:
SDV: ₹50 lakh
Purchase price: ₹44 lakh
Difference: ₹6 lakh → Taxable

3. Movable Property (Jewellery, Shares, Bullion, Crypto, etc.)

a) Without consideration
If fair market value (FMV) exceeds ₹50,000, the full FMV is taxable.

b) With inadequate consideration
If FMV minus consideration exceeds ₹50,000, the difference is taxable.

Example:
Jewellery FMV ₹2,00,000 bought for ₹1,30,000
Difference ₹70,000 → Taxable

Gifts That Are Fully Exempt (Section 92(3))

A. Gifts from Relatives (No Limit)

For individuals, “relative” includes:

• Spouse

• Parents, grandparents and other lineal ascendants

• Children, grandchildren and other lineal descendants

• Siblings of self, spouse or parents

• Lineal ascendants/descendants of spouse

• Spouses of all the above relatives

For HUFs, any member of the HUF is treated as a relative.

👉 Gifts from relatives are fully exempt, irrespective of amount.

B. Gifts Received on Marriage of the Individual

All gifts received on the occasion of one’s own marriage are tax-free, regardless of value or source.
This exemption does not apply to anniversaries or relatives’ marriages.

C. Gifts Received through Will or Inheritance

Assets received by way of inheritance or under a will are completely exempt from tax.

D. Gifts in Contemplation of Death

Gifts given in anticipation of the donor’s death are exempt.

E. Gifts from Local Authorities

Exempt as per Schedule III.

F. Gifts from Registered Charitable or Non-Profit Institutions

Allowed under Section 355(g), subject to prescribed conditions.

G. Transactions Not Regarded as Transfer (Section 70)

Gifts arising from amalgamation, demerger or business restructuring are exempt.

H. Gifts to Trusts for Benefit of Relatives

Transfers made to trusts exclusively for relatives’ benefit are tax-free.

Special Provisions for Immovable Property (Section 92(4))

If the agreement date and registration date differ, the stamp duty value as on the agreement date may be considered, provided payment is made through banking or digital modes.

If stamp duty value is disputed, the Assessing Officer may refer valuation to a Valuation Officer.

Assets Covered under “Property” (Section 92(5)(f))

• Land or building

• Shares and securities

• Jewellery

• Paintings, sculptures, artworks

• Archaeological collections

• Bullion

• Virtual Digital Assets (cryptocurrency, NFTs)

Clubbing of Income from Gifted Assets

While Section 92 taxes the receipt of gifts, income generated from gifted assets is taxed under clubbing provisions.

Example:
Cash gifted to spouse → Gift exempt
Interest earned → Clubbed in donor’s income

Similar rules apply to gifts to minor children.

Employer Gifts

Gifts from employers are taxed as salary perquisites.
Only long-service awards up to ₹5,000 are exempt.

Capital Gains on Sale of Gifted Property

• Cost of acquisition = FMV considered at time of gift

• Holding period starts from date of receipt

Documentation for Gifts

Acceptable proof includes:

• Bank transfer records

• Gift deed (optional but advisable)

• Marriage invitation and gift list

• Photographs and source explanation

Practical Examples

• Gift from father ₹10 lakh → Exempt

• Jewellery from friend ₹1 lakh → Taxable

• Flat from paternal uncle → Exempt

• Cash gift on marriage ₹5 lakh → Exempt

• Undervalued land purchase → Difference taxable since she is the spouse of the father under the Income Tax Act.
  Accordingly, any gift received from her is fully exempt from tax, irrespective of the amount.

Direct Tax Changes in 2025: Simplification and Reduced Compliance Take Centre Stage

India’s direct tax framework underwent several significant changes in 2025 as the government prioritised tax simplification, eased compliance requirements, and sought to encourage higher consumer spending. The reforms—ranging from an overhauled personal tax regime and simplified TDS provisions to an extended tax holiday for startups and greater clarity on capital gains—have had a wide-ranging impact across the economy.

New tax regime made the default option

The most notable reform was the decision to make the new tax regime under Section 115BAC the default choice for taxpayers. The basic exemption limit was increased to ₹4 lakh, while the rebate under Section 87A was enhanced, effectively making income up to ₹12 lakh tax-free.

Experts say the impact of this shift is already being felt. According to them, the simplified slab structure and higher rebate have raised disposable incomes, providing a clear boost to consumption-driven sectors such as manufacturing and construction.

Simplified TDS framework

Budget 2025 introduced meaningful changes to the Tax Deduction at Source (TDS) provisions under the Income Tax Act, 1961, with the objective of easing compliance for individuals and businesses. TDS rules were streamlined and threshold limits enhanced, significantly lowering the compliance burden for small taxpayers and enterprises. In addition, the turnover limit for presumptive taxation under Section 44AD was increased to ₹3 crore, offering MSMEs greater flexibility and reduced administrative overheads.

Extended tax holiday for startups

The 2025 Budget also prolonged the 100 per cent profit-linked tax deduction for eligible startups, allowing them to claim the benefit for any three years within their first ten years of operation. This incentive has now been extended until April 1, 2030. The extended timeline is expected to support startups in navigating initial loss-making years and improve their ability to attract investment.

Key reforms for IFSC entities

The Finance Act, 2025 rolled out a series of tax incentives for units operating in the International Financial Services Centre (IFSC). Offshore funds and exchange-traded funds (ETFs) are now permitted to relocate to IFSC without triggering adverse tax consequences. Additionally, non-residents trading in offshore or over-the-counter derivatives through IFSC platforms will be eligible for tax exemptions. Tax incentives for IFSC units have also been extended up to March 31, 2030.

A significant amendment was also made to deemed dividend provisions. Inter-company loans will no longer be classified as deemed dividends when the lending entity is a finance company or an IFSC-based finance unit. According to Ananthapadmanabhan, this change has prompted large corporate groups to consider moving treasury operations to India, as the clarity around treasury-related lending removes a key area of concern.

Removal of equalisation levy

Under the Finance Act, 2025, the government abolished the equalisation levy on digital advertising with effect from April 1, 2025. This step has simplified the tax framework for multinational technology companies operating in India.

Taking an overall view, Ananthapadmanabhan said the reforms have strengthened the foundation for sustained, demand-driven economic growth, which is also evident in the sharp rise in GDP growth to 8.2 per cent in the second quarter of FY26.

CBDT has sent in excess of 44,000 alerts to taxpayers, directing them to reveal their crypto transactions.

Minister of State for Finance Pankaj Chaudhary
Photo Credit: ANI

The Finance Ministry has issued more than 44,000 communications to taxpayers for failing to disclose their cryptocurrency transactions in their Income Tax Returns, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday. Simultaneously, the Enforcement Directorate (ED) has attached proceeds of crime exceeding ₹4,000 crore in crypto-linked investigations under the Prevention of Money Laundering Act (PMLA).

Finance Ministry data tabled in the Lok Sabha also revealed that Tax Deducted at Source (TDS) collections on crypto transactions have more than doubled over the past three years.

In a written response, Chaudhary stated: “Under the CBDT’s NUDGE (Non-Intrusive Usage of Data to Guide and Enable) campaign, 44,057 communications have been issued to taxpayers who invested in or traded VDAs but did not report these in Schedule VDA of their ITRs.” He added that advanced analytics—through Project Insight and internal databases—is being used to compare VDA transaction data with ITR disclosures. TDS statements filed by Virtual Asset Service Providers (VASPs) are also examined to spot discrepancies and initiate action.

Chaudhary further informed that the ED has taken action in several crypto-related cases under PMLA, leading to attachment, seizure, or freezing of assets worth ₹4,189.89 crore. So far, 29 individuals have been arrested and 22 prosecution complaints filed, while one accused has been declared a Fugitive Economic Offender.

TDS Collection Trend

In a separate written reply, Chaudhary highlighted that TDS collected by crypto exchanges increased from over ₹221 crore in 2022–23 to more than ₹511 crore in 2024–25. Maharashtra’s collection rose from ₹142 crore to ₹293 crore during this period, while Karnataka recorded the sharpest rise—from ₹39 crore to about ₹134 crore.

As per the Finance Act, 2022, a 1% TDS applies to all transfers of virtual digital assets, including those involving offshore platforms, where income is taxable in India. Chaudhary noted that several offshore cryptocurrency exchanges serving Indian users are not complying with these TDS requirements.

Survey operations conducted on three crypto exchanges uncovered TDS non-compliance amounting to ₹39.8 crore and undisclosed income of ₹125.79 crore. Additionally, search and seizure actions under Sections 132 and 133A of the Income Tax Act led to the detection of undisclosed income of ₹888.82 crore related to VDA transactions.

Chaudhary emphasized that due to the global nature of crypto assets, coordinated international action is essential. “A regulatory framework for crypto assets can be effective only with substantial global cooperation—particularly on assessing risks, benefits, and establishing common standards and taxonomy,” he said.

The government has announced that the new ITR forms under the revised Income Tax Act will be issued before FY 2027-28.

New Delhi: The government will notify the new Income Tax Return (ITR) forms—designed under the provisions of the Income Tax Act, 2025—before the start of the 2027-28 financial year, Minister of State for Finance Pankaj Chaudhary informed on Monday.

In a written reply in the Lok Sabha, Chaudhary said the CBDT’s committee on ITR simplification is holding wide-ranging consultations with tax professionals, institutional stakeholders, and various field units of the Income Tax Department.

The Income Tax Act, 2025—passed on August 21—will come into force from April 1, 2026, replacing the existing Income Tax Act of 1961. The new law aims to streamline tax legislation, cut down on complex wording, and enhance clarity for taxpayers.

All related forms under the Act, including TDS quarterly return forms and ITR forms, are being redesigned. The Directorate of Systems is collaborating with the Tax Policy Division to create forms that are more user-friendly.

Chaudhary noted that the ITR forms under the new Act will need to incorporate amendments introduced in Budget 2026. Therefore, the ITRs for the first tax year—2026–27—will be notified before FY 2027-28.

Regarding forms for income earned in the current fiscal year (Assessment Year 2026-27), he said the ongoing work of consolidation and simplification will continue, and these forms will be issued as per the existing Income Tax Act, 1961.

India Senior Citizen Tax Perks 2025-26 | More Than 30 Unique Benefits You Should Know

भारत में Senior Citizens को मिलने वाले लाभ — 2025–26 की सम्पूर्ण गाइड (30+ फायदे)

भारत सरकार का मानना है कि वरिष्ठ नागरिकों ने अपना पूरा जीवन परिश्रम, जिम्मेदारियों और समाज के निर्माण में लगा दिया है। इसलिए उन्हें सामान्य नागरिकों की तुलना में अधिक सुविधाएँ, कर लाभ और विशेष रियायतें प्रदान की जानी चाहिए।

इस विस्तृत लेख में हम Senior Citizens तथा Super Senior Citizens के लिए उपलब्ध सभी Tax Benefits, Banking सुविधाएँ, Compliance Relief, सरकारी योजनाएँ, छूट, रियायतें और विशेष अधिकारों को विस्तारपूर्वक समझेंगे।

यह सबसे व्यापक और पूरी तरह अपडेटेड गाइड है — जिसमें आपके अनुरोध अनुसार 30+ महत्वपूर्ण लाभ शामिल हैं।

Income Tax में Senior Citizens के प्रकार (4 श्रेणियाँ)

1️⃣ Normal Taxpayer
उम्र: 60 वर्ष से कम

2️⃣ Senior Citizen
उम्र: 60 से 79 वर्ष

3️⃣ Super Senior Citizen
उम्र: 80 वर्ष या उससे अधिक

4️⃣ Specified Senior Citizen (Section 194P)
उम्र: 75+ वर्ष
केवल पेंशन + उसी बैंक का ब्याज
ऐसे व्यक्तियों को ITR भरने से छूट (बैंक TDS काटकर कर-निपटान कर देता है)

New Tax Regime (FY 2025–26) — पूरी स्लैब संरचना

सरकार ने नई टैक्स व्यवस्था को default regime बना दिया है। स्लैब इस प्रकार हैं:

Senior Citizens के लिए सबसे बड़ा फायदा — ₹12.75 लाख तक Zero Tax

2025–26 में Standard Deduction (Salary & Pension) = ₹75,000

उदाहरण:
कुल पेंशन = ₹12,75,000
घटाएँ: Standard Deduction = ₹75,000
Taxable Income = ₹12,00,000

→ New Regime में ₹12 लाख तक Section 87A Rebate लागू
→ टैक्स = ZERO

⭐ यानी Senior Citizen pensioners की ₹12.75 लाख तक की आय पर कोई टैक्स नहीं।

Old Tax Regime — Updated Basic Exemption Limits

Section 80TTB — ब्याज आय पर ₹50,000 अतिरिक्त छूट

Senior Citizens को (Saving + FD + RD + Post Office + Co-operative Bank)–
सभी पर कुल ₹50,000 तक deduction मिलता है।

यह 80TTA के स्थान पर लागू होता है।

Section 80D — Medical Insurance पर ₹50,000

• Senior Citizens के health insurance premium पर ₹50,000

• यदि insurance उपलब्ध नहीं, तो medical expenses पर भी ₹50,000

• माता-पिता के insurance पर भी benefit

Section 80DDB — गंभीर बीमारियों पर ₹1,00,000 की छूट

Cancer, Kidney Failure, Parkinson’s आदि specified diseases पर
Senior Citizens deduction = ₹1,00,000
(अन्य लोगों को केवल ₹40,000)

Advance Tax से छूट (Section 207)

यदि Senior Citizen की केवल
✔ Pension Income
✔ Interest Income
है, और कोई Business Income नहीं:
→ Advance Tax नहीं देना
→ 234B/234C Interest नहीं लगेगा

80+ वर्ष (Super Senior) — Offline ITR Filing की सुविधा

Super Seniors (80+):
ITR-1 / ITR-4 पेपर मोड में भर सकते हैं
E-filing अनिवार्य नहीं

Section 194P — 75+ साल वालों को ITR से पूरा छूट

शर्तें:
✔ उम्र 75+
✔ केवल पेंशन + उसी बैंक का ब्याज
→ Bank tax निकालकर सीधे Department को जमा करेगा
→ ITR भरने की आवश्यकता नहीं

Low Risk Profile — Scrutiny से लगभग छूट

यदि कोई व्यवसायिक आय नहीं है,
→ 143(2) scrutiny notice
→ 147/148 reassessment notice
सामान्यतः नहीं भेजे जाते

Family Pension Exemption बढ़ा — ₹25,000

अब New Regime में:
1/3 of pension OR ₹25,000 (lower) exempt
(पहले सीमा ₹15,000 थी)

LTCG (Shares) पर Extra Benefit

₹4 लाख rebate में cover

• ₹1.5 लाख additional LTCG exempt
  → कुल मिलाकर Senior Citizens को ₹1.5 lakh extra tax-free LTCG

Reverse Mortgage — पूरा LTCG छूट

घर reverse mortgage करने पर
→ इसे “transfer” नहीं माना जाता
→ कोई capital gain tax नहीं

Senior Citizen FD Interest — अधिक ब्याज दरें

Banks:
+0.50% अतिरिक्त (Senior Citizens)
+0.75% तक (Super Seniors)

Form 15H — सीमा बढ़कर ₹12 लाख

Senior Citizen:
No TDS upto ₹12 lakh (Form 15H पर)

Bank Interest TDS Threshold — ₹1,00,000

Senior Citizens पर TDS तभी जब ब्याज > ₹1,00,000
(अन्य लोगों के लिए सीमा ₹40,000)

ITR Mandatory Filing — Higher TDS Limit

Normal: TDS > ₹25,000 → ITR आवश्यक
Senior Citizen: सीमा = ₹50,000

SCSS (Senior Citizen Savings Scheme) — प्रमुख लाभ

✔ न्यूनतम आयु: 60+
✔ जमा सीमा: ₹30 लाख
✔ ब्याज: ~8.2%
✔ 80C में deduction
✔ सरकार समर्थित सुरक्षित योजना

Super Senior Citizens (80+) — PAN–Aadhaar Linking Fee से छूट

80+ के लिए ₹1,000 linking fee नहीं लगेगी।

Airline Discounts — 5% से 50% तक

Aadhaar/ID दिखाने पर base fare में रियायत।

Senior Citizen Card — National + State Benefits

Healthcare, public services, travel concession आदि में लाभ।

Courts में Priority Hearing

Senior Citizens के मामलों की early listing एवं तेज disposal।

Health & Hospital Benefit

Govt Hospitals में लगभग free
Private Hospitals में special discounts

Roadways Bus Concession

कई राज्यों में 30%–50% तक छूट (जैसे RSRTC – 50%)

RBI Doorstep Banking (70+ years)

Cash pickup
Cash delivery
Cheque/Draft delivery
Home KYC

सब अनिवार्य सेवाएँ हैं।

Property Tax / Stamp Duty Relief

कई राज्यों में
✔ House tax rebate
✔ कम stamp duty
✔ Registration fee रियायतें

BSNL/MTNL Concessions

Priority installation
कम charges
Monthly bill relief

State Old Age Pension

राज्य सरकारें ₹1000–₹1500 या अधिक pension देती हैं (age criteria अलग-अलग)

Railway – Lower Berth Quota

Senior Men (60+) और Women (58+) को
Guaranteed lower berth + Priority allocation

भारत सरकार का उद्देश्य है कि वरिष्ठ नागरिकों को आर्थिक, स्वास्थ्य और सामाजिक जीवन के हर स्तर पर अधिक सुविधा और सम्मान मिले।

PAN to Be Declared Inoperative After 31 December 2025 — Know the Impact and Steps to Complete the Linking

If you’ve been putting off your PAN–Aadhaar linking thinking you’ll handle it “sometime soon,” that moment has officially arrived. The deadline is fast approaching, and 31 December 2025 is the final date to link your Permanent Account Number (PAN) with Aadhaar. Missing this cut-off will make your PAN inoperative, which can severely impact essential tax activities — from filing your ITR to receiving refunds.

For millions of taxpayers, PAN is far more than just a plastic card or an alphanumeric code. It serves as the primary identifier for every financial interaction with the Income Tax Department. Whether it involves monitoring advance tax, reconciling TDS/TCS, processing income tax returns, or clearing refunds — PAN is central to the entire compliance ecosystem. Linking Aadhaar with PAN enables the government to prevent duplicate PANs, reduce tax evasion, and ensure accurate matching of financial records.

Who Needs to Link PAN with Aadhaar? — CBDT Guidelines

The Central Board of Direct Taxes (CBDT) has clearly stated:

Any individual who has been allotted both PAN and Aadhaar on or before 1 October 2025 must link the two by 31 December 2025.

Failure to do so will make the PAN inoperative from 1 January 2026.

Consequences of an Inoperative PAN

An inoperative PAN is not cancelled, but in practice, it functions as if you don’t have a PAN at all. This leads to several disruptions in routine tax and financial operations:

❌ 1. Cannot file Income Tax Returns

The e-filing portal will not permit filing of ITRs using an inoperative PAN.

❌ 2. Refunds will be withheld

Any refund due will remain pending until the PAN is reactivated.

❌ 3. Pending return proceedings will be impacted

Processes such as defective returns (u/s 139(9)), updated returns (u/s 139(8A)), and assessments requiring PAN authentication will not progress.

❌ 4. Higher TDS/TCS rates

You will be considered a taxpayer “without PAN” under Sections 206AA and 206CC, resulting in deduction/collection of tax at higher rates.

❌ 5. Problems in high-value transactions

Banks, mutual funds, and other financial institutions may reject or hold transactions where PAN verification is mandatory.

In essence, allowing your PAN to become inoperative can lead to compliance setbacks, financial delays, and unnecessary complications.

Step 1: Visit the Income Tax e-Filing Website

Open the official portal: www.incometax.gov.in
On the homepage, look for the Quick Links section.

Step 2: Select ‘Link Aadhaar’

Clicking this option will open a form where you must provide:

• Your 10-digit PAN

• Your 12-digit Aadhaar number

• Name exactly as it appears on Aadhaar

Tick the declaration confirming that the details are correct, then press Validate.

Step 3: Pay the Linking Fee (If Applicable)

A late fee of ₹1,000 is required if the linking is done after the previous deadline.

If your payment is not already registered, the system will show:
“Payment details not found.”

Click Continue to Pay Through e-Pay Tax, and complete the payment using the following path:

Payment Procedure

1. Enter your PAN and mobile number, then verify via OTP.

2. On the e-Pay Tax dashboard, choose:

   • Assessment Year: 2025–26

   • Type of Payment: Other Receipts (500)

   • Sub-type: Fee for delay in linking PAN with Aadhaar

3. The portal will automatically fill the amount as ₹1,000.

4. Select your payment method and finish the transaction.

A Challan will be generated — keep this for future reference.

Step 4: Complete the Aadhaar–PAN Linking Request

Return to the Link Aadhaar page and:

• Enter PAN, Aadhaar, and Name again

• Submit the OTP sent to your Aadhaar-linked mobile number

• Click Validate

Your linking request will now be submitted.

How to Check Your Aadhaar–PAN Linking Status

You can verify the status in a few seconds:

1. Visit www.incometax.gov.in

2. Under Quick Links, click Link Aadhaar Status

3. Enter your PAN and Aadhaar

4. Select View Link Aadhaar Status

You will see one of the following responses:

✔ Linked

“Your PAN is already linked with Aadhaar.”

❌ Not Linked

You will be asked to complete the linking process.

⏳ Pending Verification

Your request has been forwarded to UIDAI for confirmation.

With 31 December 2025 being the final deadline, taxpayers are strongly advised to finish the Aadhaar–PAN linking process at the earliest.
An inoperative PAN can lead to a cascade of compliance problems — including stalled refunds, higher TDS rates, and delays in processing income-tax matters.
The entire procedure requires only a few minutes and ensures seamless tax compliance going forward.

GSTR-3B Data Access to Be Blocked from December 2025, Says GSTN

Table 3.2 in GSTR-3B – Reporting Framework and New Restrictions

Table 3.2 of Form GSTR-3B captures details of inter-state outward supplies made to the following categories:

• Unregistered persons

• Composition taxpayers

• UIN holders

The values reported in this table are system-generated based on the aggregate outward supplies declared in Table 3.1 and Table 3.1.1 of GSTR-3B. They are auto-populated using data furnished in GSTR-1, GSTR-1A, and IFF.

Key Update – Effective for the November 2025 Tax Period

1. Table 3.2 Will Become Non-Editable

Starting from the November 2025 return period, taxpayers will no longer be able to manually modify the numbers appearing in Table 3.2.

The system-generated figures must be used as-is while filing GSTR-3B.

This measure aims to strengthen consistency between the outward supply returns (GSTR-1 / IFF) and the tax liability reported in GSTR-3B.

Making Corrections to Auto-Populated Table 3.2 Values

In case the values shown in Table 3.2 are incorrect due to mistakes made in GSTR-1 or IFF:

2. Revisions Can Be Made Only Through GSTR-1A

Taxpayers may:

• Rectify or amend the relevant entries in GSTR-1A for the same tax period.

• Once GSTR-1A is submitted, Table 3.2 is updated instantly, allowing filing of GSTR-3B with the corrected figures.

Further amendments, if required, may still be made in the GSTR-1/IFF of subsequent tax periods in accordance with standard amendment provisions.

Recommended Compliance Practices

3. Ensure Accurate Reporting in GSTR-1 / GSTR-1A / IFF

To avoid mismatches and repeated amendments, taxpayers should:

• Carefully verify the draft GSTR-1 or GSTR-1A before submission.

• Ensure correct classification of inter-state supplies.

• Review B2C inter-state reporting thoroughly.

• File GSTR-1/GSTR-1A only after confirming accuracy, since GSTR-3B will rely entirely on system-populated values.

Proper reporting ensures seamless auto-population of Table 3.2 without discrepancies.

Frequently Asked Questions (FAQs)

Q1. What is the new rule regarding Table 3.2?

From the November 2025 tax period onward, Table 3.2 of GSTR-3B will be non-editable. Taxpayers must file GSTR-3B using the auto-populated values sourced from GSTR-1/GSTR-1A/IFF.

Q2. How can incorrect values be corrected?

If errors arise due to incorrect GSTR-1 reporting:

• Make necessary amendments in GSTR-1A for that specific tax period.

• GSTR-1A instantly updates Table 3.2.

• File GSTR-3B thereafter with the corrected figures.

Additional corrections may later be made in GSTR-1/IFF of following periods.

Q3. How can taxpayers ensure accuracy in Table 3.2?

• Cross-verify all outward supply details before filing GSTR-1/GSTR-1A/IFF.

• Immediately correct mistakes using GSTR-1A.

• Accurately report inter-state B2C supplies.

• Maintain consistency between outward supply returns and tax payment returns to avoid issues.

Q4. What is the deadline for filing GSTR-1A for Table 3.2 corrections?

GSTR-1A can be filed anytime after GSTR-1 is filed and up to the moment GSTR-3B is filed for the same tax period.

Therefore, corrections to Table 3.2 can be made using GSTR-1A right until GSTR-3B filing.

Income Tax Refunds: 31st December 2025 Is the Cut-off Date

Every year, many taxpayers either miss or postpone filing their Income Tax Return (ITR). However, the Income-tax Act allows you to claim a refund only if your ITR is filed within the prescribed time limit.

For Assessment Year (AY) 2025–26, the absolute last date to file a belated or revised ITR and secure any pending refund is:

➡️ 31 December 2025

Missing this deadline means your refund lapses — you permanently lose the right to claim the amount due to you.

📌 Why 31 December 2025 Is the Final Deadline

As per Sections 139(4) and 139(5) of the Income-tax Act:

• A belated return (late ITR), and

• A revised return (corrected ITR)

…can be filed only up to 31 December of the relevant assessment year.

For AY 2025–26:

• The assessment year begins on 1 April 2025, and

• The last permissible date to file a belated or revised ITR is 31 December 2025.

After this date, the income tax portal will not accept your return unless:

• The government announces an extension (which is uncommon), or

• You apply for Condonation of Delay under Section 119(2)(b) — a time-consuming process with no assurance of approval.

  What happens if you miss the 31 December 2025 ITR deadline?

  1️⃣ You forfeit any income-tax refund
  All types of refundable tax will become unclaimable if you don’t file on time: TDS on salary, TDS on fixed-deposit interest, TDS on professional fees, or any excess tax paid as advance/self-assessment tax.

  2️⃣ No chance to correct past mistakes
  You can only submit a revised return up to 31 Dec 2025. After that the law won’t let you fix errors in earlier returns.

  3️⃣ You lose the ability to carry forward losses
  Certain losses are allowed to be carried forward only if the ITR is filed within the due period. These include: business losses, speculative losses, capital-gains losses, and losses from racehorse ownership. Miss the deadline → you forfeit carry-forward claims.

  4️⃣ Penalties, interest and compliance notices
  Failing to file may invite:

  • Late-filing fee under Section 234F,

  • Interest under Sections 234A/234B/234C,

  • Automated compliance flags for AIS/TIS mismatches, and

  • System-generated notices where TDS doesn’t match the ITR.

  ---

  Who should definitely file by 31 Dec 2025?

  • ✅ Anyone expecting a refund (TDS deducted)

  • ✅ Individuals with taxable income after deductions

  • ✅ Salaried employees where employer TDS appears excessive

  • ✅ Freelancers, professionals and business owners (or anyone with books of account)

  • ✅ Senior citizens with TDS on bank FD interest

  • ✅ Students/interns/part-timers who had TDS deducted

  • ✅ Anyone who must revise a previously filed incorrect ITR

  Even if your taxable income is below the threshold, file if TDS was deducted or you maintain books — it preserves refund rights and documentation.

  ---

  Missed the deadline — any rescue options?

  Only limited, uncertain remedies:

  • Condonation of Delay (Section 119(2)(b)) — you can apply, but the CBDT may take 6–12 months to decide and may refuse the request. It’s not a reliable plan.

  • Updated ITR (ITR-U) can be filed later for corrections, but it does not allow claiming refunds.

  Don’t rely on these — they’re slow and uncertain.

  ---

  Practical tax-expert advice (short and actionable)

  • File your ITR before 31 Dec 2025 if a refund is due — even when income is below taxable limit.

  • Reconcile AIS, TIS, Form 26AS and bank interest entries before you file.

  • If you filed incorrectly earlier, revise the return before the 31 Dec deadline.

  • Remind family members (especially salaried employees and senior citizens) — many refund losses happen because people simply don’t know the deadline.

ITR Refund Delays: CBDT Chairman Explains the Reasons Behind the Hold-Up

The chairman of the Central Board of Direct Taxes (CBDT) on Monday issued a key update on the ongoing delays in processing income tax refunds for FY 2024–25. He noted that the department is currently reviewing cases where incorrect or questionable deductions may have been claimed.

According to the CBDT chief, several refund requests have been categorized as “high-value” or have been “red-flagged” by the system because of certain deduction-related claims.

Although the ITR filing deadline for this year was September 16, many taxpayers across the country are still awaiting their refunds.

The Chairman of the Central Board of Direct Taxes (CBDT) on Monday issued a key update on the ongoing delays in issuing income tax refunds for the financial year 2024–25. He noted that the department is currently reviewing instances where taxpayers may have incorrectly claimed certain deductions.

According to the chairman, several refund requests have been flagged by the system as either “high-value” or “suspicious” due to questionable deduction claims. Although the deadline for filing ITRs this year was September 16, many taxpayers across the country are still awaiting their refunds.

When can taxpayers expect their ITR refund?

CBDT Chairman Ravi Agrawal clarified that smaller-value refunds are already being processed, as reported by PTI. He added that all remaining refunds are expected to be issued either within this month or by December.

Agrawal explained that the department has detected several cases involving incorrect refund or deduction claims. These are currently under verification, he said, after inaugurating a taxpayer lounge at the ongoing India International Trade Fair (IITF).

Why are refunds getting delayed?

Agrawal said the delay is primarily due to a detailed review of wrongful or inaccurate deduction claims submitted by some taxpayers. Several refund requests have been categorised as “high-value” or have been red-flagged by the system because of discrepancies in the deductions claimed.

“We have also written to some taxpayers advising them to file a revised return if they have missed declaring any information,” he noted.

The chairman added that there is currently negative growth in refund volumes, which may be linked to a fall in refund claims even though TDS rates were rationalised.

According to PTI, refund issuances have dropped by around 18%, standing at over ₹2.42 lakh crore between April 1 and November 10.

Other Updates

Agrawal also mentioned that the department is working to reduce litigation in direct tax matters. Appellate authorities are making significant progress, with over 40% more appeals disposed of this year compared to last year. He expects the total number of resolved cases to be substantially higher by the end of the year.

Additionally, the Income Tax Department will soon release the new ITR forms and rules under the simplified Income Tax Act, 2025, which will take effect from the next financial year.