To streamline compliance and improve the accuracy of GST returns, the Goods and Services Tax Network (GSTN) has introduced significant changes in the reporting mechanism of Table 3.2 of GSTR-3B, applicable from the April 2025 tax period onwards.
Table 3.2 deals with inter-state supplies made to unregistered persons, composition taxpayers, and UIN holders. This table plays a crucial role in capturing tax liabilities on such supplies accurately, based on the outward supplies reported in GSTR-1, GSTR-1A, or IFF.
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Key Highlights of the Advisory
1. Auto-population of Table 3.2
Table 3.2 of GSTR-3B captures values from inter-state supplies declared in GSTR-1, GSTR-1A, and IFF.
These values are auto-populated based on the corresponding supply details already reported in Table 3.1 & 3.1.1 of GSTR-3B.
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2. Table 3.2 to Become Non-editable
From the April 2025 tax period, the auto-populated data in Table 3.2 of GSTR-3B will be non-editable.
Taxpayers will no longer be able to manually change or correct these values in GSTR-3B.
This means GSTR-3B must be filed with system-generated values only in Table 3.2.
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3. Rectifying Incorrect Auto-populated Data
If any discrepancy is found in the auto-populated values of Table 3.2 after April 2025, taxpayers can make corrections only through the following methods:
By amending relevant entries via Form GSTR-1A, or
By filing amended or corrected data in Form GSTR-1 or IFF for subsequent tax periods.
There will be no provision to rectify errors directly in GSTR-3B after the auto-population process.
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4. Ensuring Accuracy in GSTR-3B
To ensure that GSTR-3B reflects accurate tax liabilities:
Taxpayers must ensure correct and consistent reporting in GSTR-1, GSTR-1A, or IFF.
These filings form the basis of the auto-populated values in Table 3.2 of GSTR-3B.
Accuracy in these forms will lead to compliance-ready, auto-generated values without the need for post-filing amendments.
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Frequently Asked Questions (FAQs)
Q1. What changes are introduced in Table 3.2 of GSTR-3B from April 2025?
From April 2025, values in Table 3.2, related to inter-state supplies to unregistered persons, composition taxpayers, and UIN holders, will be auto-populated and non-editable in GSTR-3B.
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Q2. How can I rectify errors in Table 3.2 of GSTR-3B after April 2025?
If incorrect values are auto-populated, amendments must be made through Form GSTR-1A or in GSTR-1/IFF filed in subsequent tax periods.
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Q3. What should I do to ensure correct values in Table 3.2?
Ensure accurate reporting of inter-state outward supplies in GSTR-1, GSTR-1A, or IFF. The system uses these forms to derive auto-populated values in Table 3.2.
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Q4. Until when can I make amendments using GSTR-1A?
Form GSTR-1A can be filed after GSTR-1 and till the time of filing GSTR-3B. Thus, amendments to Table 3.2 can be made up to the moment of filing GSTR-3B.
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This update is part of GSTN’s broader initiative to improve automation, transparency, and accuracy in return filings. Taxpayers are encouraged to verify data in GSTR-1/IFF carefully before filing and utilize GSTR-1A promptly if corrections are needed. Staying aligned with these changes will ensure compliance and prevent delays in return submissions.
For more details and official notifications, please visit the GST Portal.
The Goods and Services Tax Network (GSTN) has been progressively enhancing the compliance framework to improve accuracy, standardization, and reporting under GST returns. A significant part of this endeavor is the systematic revision of Table-12 in GSTR-1 and GSTR-1A, which deals with HSN (Harmonized System of Nomenclature) code-wise summary of outward supplies.
GSTN has implemented the changes in a phased manner and has regularly issued advisories on each phase through the GST Portal. As per the latest update, Phase-III of this initiative will be rolled out from the April 2025 tax period onward.
Key Changes in Table-12 under Phase-III
Effective from the April 2025 tax period, the following two major changes will be enforced in Table-12 of GSTR-1 and GSTR-1A:
1. Bifurcation of Table-12 into B2B and B2C Sections
The original Table-12, which required taxpayers to furnish HSN-wise summaries of outward supplies, will now be divided into two distinct parts:
B2B (Business-to-Business) Supplies
B2C (Business-to-Consumer) Supplies
This bifurcation aims to provide clear segregation of transaction types and better analytics for tax authorities and businesses.
Taxpayers will now be required to report HSN-wise summary of B2B and B2C supplies separately, in their respective tables within the return.
2. Restriction on Manual Entry of HSN Codes
Another major change is the discontinuation of manual input of HSN codes in Table-12.
Instead, taxpayers will have to select the appropriate HSN codes from a drop-down menu provided on the GST portal interface.
This change will:
Minimize errors arising from incorrect or invalid HSN entries
Ensure standardization of reported HSN codes
Streamline the return filing process through system-aided data entry
Reference to Earlier Advisory
For a comprehensive understanding of the transition and functionality under Phase-III, taxpayers are encouraged to refer to the detailed advisory issued on January 22, 2025, which is available at the GST portal.
Timely compliance with tax deadlines is essential for individuals, businesses, and professionals to avoid interest, penalties, and legal issues. April marks the beginning of the new financial year, and it’s crucial to start it right with all key tax and GST filings. Below is a complete compliance calendar covering Income Tax and Goods & Services Tax (GST)due dates for April 2025.
✅ Income Tax Compliance Calendar – April 2025
📌 April 7, 2025
TDS/TCS Deposit by Government Offices:
Last date for deposit of TDS/TCS by a government office for March 2025.
Note: If paid without an Income-tax Challan, it must be deposited on the same day.
Form 27C Upload:
Upload declarations received in Form 27C from buyers for March 2025 transactions.
📌 April 14, 2025
TDS Certificate Issuance (for February 2025 deductions):
Under Section 194-IA: On transfer of immovable property.
Under Section 194-IB: Rent payments by individuals/HUFs not under tax audit.
Under Section 194M: Payments to contractors/professionals by non-audit individuals.
Under Section 194S: Transfer of virtual digital assets (by specified persons).
📌 April 15, 2025
Form 15CC:
Quarterly submission by Authorized Dealers regarding foreign remittances made during Jan–Mar 2025.
Form 3BB by Stock Exchanges:
Statement of client code modifications in March 2025.
Statement by Recognized Association:
On client code modifications during March 2025.
📌 April 30, 2025
Form 24G Submission:
For government offices that deposited TDS/TCS for March 2025 without challan.
Challan-Cum-Statement Filing (for March 2025 TDS under the following sections):
194-IA – Property transfer
194-IB – Rent
194M – Contractors/professionals
194S – Virtual digital assets (by specified persons)
TDS Deposit (Non-Government Deductors):
Last date to deposit TDS by non-government deductors for March 2025.
Form 61 Filing:
E-filing of declarations received in Form 60 from October 1, 2024 to March 31, 2025.
Form 15G/15H Upload:
Upload declarations received from recipients for quarter ending March 2025.
Quarterly TDS Deposit (If Allowed by AO):
Under Sections 192 (Salaries), 194A (Interest), 194D (Insurance Commission), and 194H (Brokerage).
Applicable where AO has permitted quarterly payment – deposit for Jan–Mar 2025.
Pension Fund Reporting:
Intimation by a pension fund on investments made in India for Jan–Mar 2025.
Sovereign Wealth Fund Reporting:
Intimation by Sovereign Wealth Funds on Indian investments during Jan–Mar 2025.
✅ GST Compliance Dates – April 2025
📌 April 10, 2025
GSTR-7 Filing:
Due date for persons required to deduct TDS under GST for the month of March 2025.
📌 April 11, 2025
GSTR-1 Filing (Monthly):
For taxpayers with annual turnover > ₹1.5 crore or who have opted for monthly filing.
📌 April 13, 2025
GSTR-6:
For Input Service Distributors (ISD) for March 2025.
GSTR-5:
For non-resident taxable persons.
Invoice Furnishing Facility (IFF):
For taxpayers under the QRMP scheme to upload B2B invoices for March 2025.
Quarterly GSTR-1 (QRMP scheme):
Filing for Jan–Mar 2025 quarter.
📌 April 20, 2025
GSTR-3B (Monthly):
For taxpayers with:
Annual turnover > ₹5 crore, or
Opted for monthly filing, for March 2025.
GSTR-5A:
For OIDAR service providers (Online Information & Database Access/Retrieval).
📌 April 22, 2025
Quarterly GSTR-3B (Group 1 States/UTs):
For Jan–Mar 2025 quarter under the QRMP scheme.
📌 April 24, 2025
Quarterly GSTR-3B (Group 2 States/UTs):
For Jan–Mar 2025 quarter under the QRMP scheme.
🔄 Other Key Tax Compliance Deadlines
🔹 Advance Tax Payments (FY 2025-26):
1st Installment – June 15, 2025: 15% of estimated annual tax.
2nd Installment – September 15, 2025: 45% of estimated tax (cumulative).
3rd Installment – December 15, 2025: 75% of estimated tax (cumulative).
Final Installment – March 15, 2026: 100% of estimated tax.
🔹 TDS Return Filing:
May 31, 2025:
Due date for filing TDS returns for Q4 of FY 2024-25 (January to March 2025).
🔹 MCA (Company) Filings:
June 30, 2025: Form DPT-3 (Return of Deposits).
September 30, 2025: DIR-3 KYC (Director KYC compliance).
October 14, 2025: ADT-1 (Auditor appointment details, if AGM held on Sept 30).
Several financial rule changes are going to come into effect from April 1, 2025 onwards, impacting UPI users, credit card holders, and pensioners across the country.
A customer holds hundred rupees Indian currency notes near a roadside currency exchange stall in New Delhi, India, May 24, 2024.(Priyanshu Singh/Reuters)
1) New income tax slabs
A prominent rule change that will take place is related to the new income tax slabs which were introduced in the Union Budget 2025 , wherein individuals earning up to ₹12 lakh per annum are exempt from paying income taxes.
On top of this, the standard deduction of ₹75,000 makes annual incomes up to ₹12.75 lakh tax-free.
2) New UPI rule for inactive numbers
Apart from this, the National Payments Corporation of India (NPCI) has now mandated that Unified Payments Interface (UPI) transactions from inactive numbers will not happen anymore.This is to reduce the possibility of transactions taking place wrongly from numbers the telecom providers reallocated due to inactivity.
3) New credit card rules
Credit card holders will also experience new changes to reward points and benefits.
For instance, SBI SimplyCLICK and Air India SBI Platinum Credit Card users will see adjustments in reward structures while Axis Bank will revise the benefits of its Vistara Credit Card after the merger with Air India.
4) Unified Pension Scheme (UPS)
The Unified Pension Scheme (UPS), originally introduced in August 2024 will also be implemented, replacing the old pension system and impacting roughly 23 lakh central government employees, with those having at least 25 years of service receiving a pension equivalent to 50 percent of their last 12 months’ average basic salary.
5) New GST security feature
Meanwhile, the Goods and Services Tax (GST) framework will also see new modifications, with a new security feature called Multi-Factor Authentication (MFA) becoming mandatory for taxpayers accessing the GST portal.
On top of this, E-Way Bills (EWB) can only be generated for base documents which are not older than 180 days.
6) Minimum balance changes
Also major lenders such as SBI, Punjab National Bank, and Canara Bank will update their minimum balance requirements with customers who fail to maintain the revised balance facing penalties.
The Central Board of Indirect Taxes and Customs (CBIC) has announced that any hotel which charges room rent above ₹7,500 per day at any point during a financial year will be classified as a ‘specified premises’ for the following year. As a result, restaurant services offered within such hotels will attract 18% GST, with the benefit of input tax credit (ITC) available.
From April 1, 2025, the taxability of such restaurants which operate inside hotels will be on the basis of value of supply (transactional value). This would replace the concept of ‘declared tariff’ which included charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.
“For the period starting from 01.04.2025, the value of supply of hotel accommodation in the previous FY, i.e., the transaction value charged for the said supply, would be the basis for determining whether the premises providing hotel accommodation service mandatorily falls under the category of ‘specified premises’ or not in the current FY,” the CBIC said in a FAQ issued on the topic of ‘Restaurant Service’ supplied at ‘Specified Premises’.
The CBIC has defined ‘specified premises’ as those premises from where the supplier has provided in the preceding financial year, ‘hotel accommodation’ service having the value of supply of any unit of accommodation above Rs 7,500 per unit per day or equivalent.
Restaurant services inside such hotel units would automatically attract 18 per cent GST, with input tax credit (ITC).
Restaurant services inside hotels whose room rent has not crossed Rs 7,500/unit/day in the preceding financial year will continue to attract 5 per cent GST, without ITC.
Also, those hotels which intend to charge over Rs 7,500 room rent from the next fiscal can file an ‘opt in’ declaration with GST authorities between January 1 and March 31 of the ongoing fiscal. Also, hotels seeking new registration will have to fill in opt in declaration with 15 days of obtaining it declaring the said premises as ‘specified premises’.
The CBIC said the notion of ‘declared tariff’ was being replaced with ‘value of supply’ (i.e. transaction value) in the definition of specified premises, as the hotel industry has largely moved to a dynamic pricing model.
Making the ‘specified premises’ status of a premises providing hotel accommodation service, in the current FY, dependent upon the ‘value of supply’ of units of accommodation provided by the hotel in the previous financial year, will give certainty regarding the ‘specified premises’ status of a hotel for any financial year.
It will also “give an option to the supplier of hotel accommodation service to declare the premises as ‘specified premises’ so that the restaurants located in the said premises can avail the rate of 18 per cent with ITC on the supply of restaurant service”, the CBIC said.
The Government of India, through the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), has introduced a GST Amnesty Scheme 2025. This scheme provides relief to taxpayers by waiving penalties and interest for certain past GST liabilities. The changes have been incorporated through Section 128A of the CGST Act, 2017, along with Rule 164 of the CGST Rules, 2017. The scheme applies to tax demands for the period from 1st July 2017 to 31st March 2020.
This article provides a detailed breakdown of the scheme, its eligibility criteria, benefits, procedural aspects, and clarifications issued by the CBIC through Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax.
New Section 128A inserted into the CGST Act, 2017, allowing waiver of interest, penalty, or both for past tax demands.
Rule 164 added to the CGST Rules, 2017, to provide procedural guidance for availing benefits.
Applicable for tax demands raised under Section 73 of the CGST Act for the period 1st July 2017 to 31st March 2020.
Taxpayers need to make payments using FORM GST DRC-03 or other prescribed methods.
The scheme is effective from 1st November 2024.
Eligibility for Amnesty Benefits
As per Circular No. 248/05/2025-GST, the following categories of taxpayers can avail of the GST amnesty scheme:
Taxpayers who have already paid tax through FORM GSTR-3B
If the payment was made before 1st November 2024, it will be considered valid for amnesty.
However, payments made after this date must be through FORM GST DRC-03.
Taxpayers who have pending tax liabilities under Section 73
They must pay their due tax to avail of interest and penalty waiver.
Taxpayers who have filed appeals against consolidated adjudication orders
If an appeal covers periods both inside and outside the amnesty period, the taxpayer can withdraw only the portion related to the amnesty period (FY 2017-18 to 2019-20).
Procedural Requirements
The scheme specifies clear steps for taxpayers to follow in order to claim amnesty benefits:
A. Payment of Tax Liability
If the taxpayer already paid tax before 1st November 2024 via GSTR-3B, it will be considered valid.
If payment is made on or after 1st November 2024, it must be done using FORM GST DRC-03.
B. Withdrawal of Appeals
If a taxpayer has filed an appeal covering multiple financial years, they can partially withdraw the appeal for the period covered under Section 128A (FY 2017-18 to 2019-20).
The appellate authority will continue proceedings for the periods beyond the amnesty coverage.
Key Clarifications from CBIC
The CBIC issued Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax to clarify various issues faced by taxpayers:
A. Treatment of Past Payments (FORM GSTR-3B)
Taxpayers who paid tax via FORM GSTR-3B before 1st November 2024 are eligible for amnesty.
Post 1st November 2024, payments must be made through FORM GST DRC-03.
B. Appeal Withdrawal Process
If an appeal covers both eligible (FY 2017-18 to 2019-20) and non-eligible periods, the taxpayer needs to:
Withdraw the appeal for the eligible period.
Continue the appeal for the non-eligible period.
C. No Refund for Taxes Already Paid
No refund will be granted for taxes, interest, or penalties already paid before the introduction of Rule 164.
If a demand notice covered both amnesty and non-amnesty periods, only the eligible period gets relief.
Changes Introduced in Rule 164 (via Notification No. 11/2025)
Modification in Rule 164(4):
Taxpayers must pay tax only for the period covered under Section 128A.
Partial appeal withdrawal is allowed.
Insertion of Explanation in Rule 164(4):
If a demand covers both eligible and non-eligible periods, the taxpayer will not receive a refund for taxes already paid.
Addition to Rule 164(7):
Instead of withdrawing a full appeal, taxpayers can notify the appellate authority that they wish to withdraw only for the amnesty period.
The Government of India, through the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), has introduced a GST Amnesty Scheme 2025. This scheme provides relief to taxpayers by waiving penalties and interest for certain past GST liabilities. The changes have been incorporated through Section 128A of the CGST Act, 2017, along with Rule 164 of the CGST Rules, 2017. The scheme applies to tax demands for the period from 1st July 2017 to 31st March 2020.
This article provides a detailed breakdown of the scheme, its eligibility criteria, benefits, procedural aspects, and clarifications issued by the CBIC through Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax.
Circular No. 248/05/2025-GST
Notification No. 11/2025-Central Tax
Key Highlights of the GST Amnesty Scheme 2025
New Section 128A inserted into the CGST Act, 2017, allowing waiver of interest, penalty, or both for past tax demands.
Rule 164 added to the CGST Rules, 2017, to provide procedural guidance for availing benefits.
Applicable for tax demands raised under Section 73 of the CGST Act for the period 1st July 2017 to 31st March 2020.
Taxpayers need to make payments using FORM GST DRC-03 or other prescribed methods.
The scheme is effective from 1st November 2024.
Eligibility for Amnesty Benefits
As per Circular No. 248/05/2025-GST, the following categories of taxpayers can avail of the GST amnesty scheme:
Taxpayers who have already paid tax through FORM GSTR-3B
If the payment was made before 1st November 2024, it will be considered valid for amnesty.
However, payments made after this date must be through FORM GST DRC-03.
Taxpayers who have pending tax liabilities under Section 73
They must pay their due tax to avail of interest and penalty waiver.
Taxpayers who have filed appeals against consolidated adjudication orders
If an appeal covers periods both inside and outside the amnesty period, the taxpayer can withdraw only the portion related to the amnesty period (FY 2017-18 to 2019-20).
Procedural Requirements
The scheme specifies clear steps for taxpayers to follow in order to claim amnesty benefits:
A. Payment of Tax Liability
If the taxpayer already paid tax before 1st November 2024 via GSTR-3B, it will be considered valid.
If payment is made on or after 1st November 2024, it must be done using FORM GST DRC-03.
B. Withdrawal of Appeals
If a taxpayer has filed an appeal covering multiple financial years, they can partially withdraw the appeal for the period covered under Section 128A (FY 2017-18 to 2019-20).
The appellate authority will continue proceedings for the periods beyond the amnesty coverage.
Key Clarifications from CBIC
The CBIC issued Circular No. 248/05/2025-GST and Notification No. 11/2025-Central Tax to clarify various issues faced by taxpayers:
A. Treatment of Past Payments (FORM GSTR-3B)
Taxpayers who paid tax via FORM GSTR-3B before 1st November 2024 are eligible for amnesty.
Post 1st November 2024, payments must be made through FORM GST DRC-03.
B. Appeal Withdrawal Process
If an appeal covers both eligible (FY 2017-18 to 2019-20) and non-eligible periods, the taxpayer needs to:
Withdraw the appeal for the eligible period.
Continue the appeal for the non-eligible period.
C. No Refund for Taxes Already Paid
No refund will be granted for taxes, interest, or penalties already paid before the introduction of Rule 164.
If a demand notice covered both amnesty and non-amnesty periods, only the eligible period gets relief.
Changes Introduced in Rule 164 (via Notification No. 11/2025)
Modification in Rule 164(4):
Taxpayers must pay tax only for the period covered under Section 128A.
Partial appeal withdrawal is allowed.
Insertion of Explanation in Rule 164(4):
If a demand covers both eligible and non-eligible periods, the taxpayer will not receive a refund for taxes already paid.
Addition to Rule 164(7):
Instead of withdrawing a full appeal, taxpayers can notify the appellate authority that they wish to withdraw only for the amnesty period.
The Budget 2025 introduced major amendments to the Income Tax Act, 1961, aimed at simplifying India’s tax structure. These changes take effect from 1st April 2025 and will be applicable for FY 2025-26 (AY 2026-27).
1. Income Tax Slabs for FY 2025-26 (AY 2026-27)
The Budget 2025 introduced revised tax slabs under Section 115BAC (New Tax Regime) to enhance savings and boost spending capacity. These new slab rates apply to income earned in FY 2025-26 onwards.
Income Tax Slabs
Income Tax Rates
Up to ₹4 lakh
NIL
₹4 lakh – ₹8 lakh
5%
₹8 lakh – ₹12 lakh
10%
₹12 lakh – ₹16 lakh
15%
₹16 lakh – ₹20 lakh
20%
₹20 lakh – ₹24 lakh
25%
Above ₹24 lakh
30%
Note: Old Tax Regime (Optional) slab rates remain unchanged.
2. Increased Rebate Under Section 87A
The rebate under Section 87A has been increased to ₹60,000 from the previous limit of ₹25,000. This means taxpayers with income up to ₹12 lakh will have zero tax liability under the New Tax Regime.
3. Tax Deduction at Source (TDS) Changes
Effective April 2025, the TDS threshold limits for various sections have been increased as follows:
Section
Before 1st April 2025
From 1st April 2025
193 – Interest on securities
NIL
₹10,000
194A – Interest other than Interest on securities
(i) ₹50,000 for senior citizens (ii) ₹40,000 for others (banks, co-op societies, post offices) (iii) ₹5,000 in other cases
(i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases
194 – Dividend for individual shareholder
₹5,000
₹10,000
194K – Income from mutual fund units
₹5,000
₹10,000
194B & 194BB – Winnings from lottery, crossword, horse race
Aggregate exceeding ₹10,000 annually
₹10,000 per transaction
194D – Insurance commission
₹15,000
₹20,000
194G – Commission/prizes on lottery tickets
₹15,000
₹20,000
194H – Commission or brokerage
₹15,000
₹20,000
194I – Rent
₹2,40,000 annually
₹50,000 per month
194J – Professional/technical services fees
₹30,000
₹50,000
194LA – Compensation on land acquisition
₹2,50,000
₹5,00,000
194T – Remuneration/interest/commission to partners
NIL
₹20,000
The following changes in TDS Rates will apply from 1st April 2025:
S. No.
Section of the Act
Existing TDS/TCS Rate
Proposed TDS/TCS Rate
1.
Section 194LBC – Income in respect of investment in securitization trust
25% (if payee is an Individual or HUF) and 20% (otherwise)
10%
Note: Other TDS provisions remain unchanged.
4. Omission of TCS on Sale:
Existing Provision (Section 206C(1H))
TCS at 0.1% is collected on the sale of goods (except exports and certain specified goods). Applicable if the sale value exceeds ₹50 lakh in a financial year.
Issue with Existing Provision
TDS under Section 194Q also applies at 0.1% on the same transaction. Uncertainty for sellers, as they are often unaware if the buyer has deducted TDS, leading to double compliance(both TDS & TCS).
Key Change:
TCS on the sale of goods (Section 206C(1H)) is removed from 01.04.2025. TDS under Section 194Q will continue.
4. Benefits to Taxpayers
No double compliance (TCS & TDS confusion removed). Reduced compliance burden for sellers. Avoids unnecessary liquidity blockage.
5. Effective Date
From 01.04.2025, sellers are NOT required to collect TCS on the sale of goods.
5. Tax Collected At Source (TCS) Changes
The following TCS changes will be effective from April 2025:
Section
Before 1st April 2025
From 1st April 2025
206C(1G) – Remittance under LRS & Overseas Tour Packages
₹7 lakh
₹10 lakh
206C(1G) – Remittance for education through loans
₹7 lakh
NIL (No TCS)
Definition of “Forest Produce” Rationalized
Q1. What are the major provisions of Section 206C(1) (TCS on Sale of Specified Goods)? Section 206C(1) mandates TCS collection on the sale of specific goods like alcohol, timber, tendu leaves, and other forest produce.
Q2. What changes were made in Finance Bill 2025?
Three major amendments:
“Forest produce” has been formally defined.
Scope clarification: Now, only “forest produce under a forest lease” is liable for TCS.
TCS Rate Reduction:
TCS on timber and other forest produce (excluding tendu leaves) under a forest lease is reduced from 2.5% to 2%.
Q3. How has “forest produce” been defined? It follows the meaning provided under State Forest Acts or the Indian Forest Act, 1927.
Q4. What are the key changes in TCS applicability on forest produce? Earlier: TCS was applicable to all forest produce sales. Now: Only forest produce obtained under a forest lease is liable for TCS.
Q5. What is the new TCS rate for forest produce (excluding timber and tendu leaves) under a forest lease? The TCS rate is reduced from 2.5% to 2%.
Exemption from Prosecution for Delayed Payment of TCS (Section 276BB)
Q1. What is Section 276BB of the Income-tax Act, 1961? Section 276BB provides for prosecution in case of failure to pay the tax collected at source (TCS) to the credit of the Central Government.
Q2. What amendment has been made in Section 276BB in Finance Bill 2025? The amendment states that prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government on or before the prescribed time for filing the TCS statement under proviso to Section 206C(3).
Q3. What happens if the person does not pay TCS even after the due date? The present provisions of Section 276BB shall continue to apply, meaning prosecution can be initiated.
Q4. How does this amendment benefit taxpayers? Taxpayers who miss the TCS payment deadline but pay before filing the TCS statement will now be exempt from prosecution, reducing litigation risks.
6. Removal of Higher TDS/TCS for Non-Filers of Income Tax Return
Q1. What are Sections 206AB and 206CCA of the Act? Section 206AB mandates higher TDS rates for non-filers of income tax returns. Section 206CCA mandates higher TCS rates for non-filers of income tax returns.
Q2. What changes were made in Finance Bill 2025? Both sections are proposed to be omitted from 01.04.2025 onwards.
Q3. How does this benefit taxpayers? Deductors and collectors no longer need to verify whether the deductee/collectee has filed an income tax return, reducing compliance burdens. However, higher TDS/TCS rates for invalid PAN or no-PAN cases will continue to apply.
Q4. From when will these sections be omitted? From 1st April 2025, these provisions will no longer be applicable.
7. Updated Tax Return (ITR-U) Deadline Extended
The deadline for filing an Updated Tax Return (ITR-U) has been extended from 12 months to 48 months (4 years). Additional tax liability depends on when the ITR-U is filed:
If ITR-U filed within
Additional Tax
12 months from relevant AY
25% of additional tax (tax + interest)
24 months from relevant AY
50% of additional tax (tax + interest)
36 months from relevant AY
60% of additional tax (tax + interest)
48 months from relevant AY
70% of additional tax (tax + interest)
8. Benefits for IFSC Units
Sunset date extended: IFSC units can now commence operations until 31st March 2030 to claim tax benefits.
Life insurance policies issued by IFSC offices to non-residents are fully exempt under Section 10(10D), with no limit on premium amount.
9. Tax Exemptions for Start-ups
Start-ups incorporated before 1st April 2030 can avail 100% tax exemption on profits for three consecutive years out of ten years under Section 80-IAC, subject to conditions.
10. Tax Deduction for NPS Vatsalya
1. What is NPS Vatsalya?
A pension scheme launched on 18.09.2024, allowing parents/guardians to maintain an NPS account for minor children.
2. Existing 80CCD Provisions
Deduction available for contributions to NPS by employees, employers, or any assessee.
Withdrawals are taxable, subject to certain conditions.
3. Key Amendments in Finance Bill 2025
Tax Deduction Extended: Parents/guardians can now claim deduction for contributions to NPS Vatsalya (for up to 2 minor children) under the old tax regime. Allowed under Section 80CCD(1B) with an overall cap of ₹50,000 (including self & children’s contributions). Partial withdrawal (up to 25%) is tax-exempt under Section 10(12BA). Final withdrawal is taxable if a deduction was claimed earlier.
4. Effective Date
Applicable from AY 2026-27 (PY 2025-26).
11. Tax Exemption for Withdrawals from National Savings Scheme (NSS):
1. Previous NSS Provisions
Section 80CCA allowed deduction for deposits in National Savings Scheme (NSS).
Withdrawals (with interest) were taxable if a deduction was claimed earlier.
No deduction was allowed under Section 80CCA since AY 1992-93.
No tax on withdrawals after the depositor’s demise.
2. Key Change in NSS (DEA Notification – 29.08.2024)
No interest will be credited to NSS accounts from 01.10.2024.
3. Benefits under Finance Bill 2025
Tax exemption granted on withdrawals made on or after 29.08.2024. Exemption applies only to deposits for which deduction under Section 80CCA was claimed earlier. Allows depositors to withdraw funds without tax liability.
4. Effective Date
Applicable for withdrawals made on or after 29.08.2024.
12. Deduction on Remuneration Paid to Partners
The maximum deduction available for partners’ remuneration will be:
Book Profit
Deduction Limit
First ₹6,00,000 of book profit or loss
₹3,00,000 or 90% of book profit, whichever is higher
Remaining book profit
60% of book profit
13. Clarity in Taxation of Income on Redemption of Unit Linked Insurance Policy (ULIP)
Q1. What are the provisions relating to amounts received under a life insurance policy?
Ans. Section 10(10D) provides income-tax exemption on the sum received under a life insurance policy, including any bonus, subject to certain conditions.
Q2. What conditions must be fulfilled to claim exemption under Section 10(10D)?
Ans. To claim the exemption, the following conditions must be met:
The annual premium for any year during the policy term should not exceed 10% of the actual sum assured (for policies issued on or after 01.04.2012).
For policies issued after 01.02.2021, the total premium must not exceed ₹2,50,000 (for ULIPs) or ₹5,00,000 (for other life insurance policies) to qualify for exemption.
Q3. What happens if the conditions under Section 10(10D) are not fulfilled?
Ans. If the above conditions are not met, then:
For ULIP policies, the amount received will be taxed as capital gains under Section 45(1B).
For other life insurance policies, the income will be taxed under “Income from Other Sources”.
Q4. What changes have been introduced through the Finance Bill 2025?
Ans.
Previously, even if the ULIP premium exceeded 10% of the sum assured, the redemption amount was not explicitly taxed under “Capital Gains.” This led to ambiguity regarding its tax treatment.
Finance Bill 2025 clarifies that any sum received from a non-exempt ULIP policy will be taxed as capital gains.
This ensures uniform tax treatment for all ULIP policies, eliminating any confusion.
Thus, if the exemption under Section 10(10D) does not apply, the income received will be taxed as:
Capital Gains (for ULIP policies)
Income from Other Sources (for non-ULIP life insurance policies)
14. Changes for Charitable Trusts & Institutions
1. Extended Registration Validity
Trusts with income below ₹5 crores now get 10-year registration validity instead of 5 years.
2. Flexibility for Incomplete Applications
Incomplete registration applications will no longer lead to automatic cancellation. Trusts can now rectify mistakes before rejection.
3. Changes in ‘Specified Persons’ Definition
Higher contribution threshold:
A person is considered a “specified person” if they contribute ₹1 lakh in a financial year (earlier ₹50,000) OR ₹10 lakh in total (earlier no such limit).
‘Relatives’ and ‘concerns’ of specified persons are excluded from the definition.
Founders, trustees, and managers remain fully covered under existing restrictions.
15.Obligation to Furnish Information on Crypto Assets
1. Definition of Crypto Asset
Crypto assets are defined under Section 2(47A) as part of the Virtual Digital Asset (VDA) definition in the Income Tax Act.
2. Key Amendments in Finance Act 2025
Reporting entities must furnish prescribed information on crypto transactions. Information must be reported within the prescribed time and manner to the Income Tax Authority.
3. Reporting Obligations
Who must report? A prescribed reporting entity under Section 285BAA (to be defined in Income Tax Rules).
What information? Details of crypto transactions (as specified in Income Tax Rules).
To whom? The Income Tax Authority (as prescribed).
4. Why is this Reporting Necessary?
India is among 52 jurisdictions adopting the Crypto-Asset Reporting Framework (CARF). CARF mandates Automatic Exchange of Tax-Relevant Information (AEOI) on crypto assets. The G20 Leaders’ New Delhi Declaration called for swift CARF implementation.
5. Implementation Date
Reporting entities must start providing information from the prescribed date (to be notified in rules).
16. Annual Value of Self-Occupied Property : Deemed Let out property
The taxation of self-occupied property has been simplified. Relaxation in conditions under Section 23(2) for determining annual value as nil.
Previous Conditions
The annual value of a self-occupied house was considered nil if: The owner resided in it. The owner could not reside due to business, profession, or employment reasons.
New Relaxations in Finance Act 2025
Now, the annual value will be nil if the property is self-occupied, regardless of the reason for not residing in it. No longer necessary to prove that the owner couldn’t reside due to work-related reasons.
4. How Many Properties Can Be Considered as Nil?
Up to two self-occupied properties, at the owner’s option, can have nil annual value (if no rent or benefit is derived).
5. Example Scenario
House 1 (Bangalore) – Mother resides.
House 2 (Mumbai) – Owner resides.
House 3 (Delhi) – Vacant.
The owner can choose two houses to be treated as self-occupied with nil annual value for tax purposes.
6. Effective Date
Applies fromPrevious Year 2024-25 (Assessment Year 2025-26 onwards).
Investing money wisely is crucial for financial security, and individuals choose from various options like mutual funds, stocks, real estate, gold, government schemes, and fixed deposits (FDs). While mutual funds and stocks offer higher returns, they come with market risks. Gold and real estate provide stability but require significant capital and have liquidity constraints. On the other hand, fixed deposits (FDs) remain a preferred investment choice for many due to their safety, assured returns, and ease of access. However, interest earned on FDs is subject to Tax Deducted at Source (TDS), which can reduce your returns
Fixed Deposit (FD) interest is subject to Tax Deducted at Source (TDS) if it exceeds a certain threshold. The Finance Act 2025 has introduced key changes in TDS rules, including increase in the TDS threshold for interest under Section 194A. These changes will be effective from April 1, 2025.
Important Change from 1st April 2025: Increase in TDS Threshold on FD Interest (Section 194A)
Current Rule (Before April 1, 2025):
TDS is deducted at 10% if interest on FD exceeds:
₹40,000 for regular individuals
₹50,000 for senior citizens
New Rule (Effective April 1, 2025):
The threshold for TDS deduction is increased to ₹50,000 for regular individuals.
For senior citizens, the Increased to ₹1,00,000.
This means fewer people will have TDS deducted on their FD interest.
2. How to Save TDS on FD Interest?
If your total income is below the taxable limit, you can submit Form 15G or Form 15H to your bank to avoid TDS deduction on FD interest.
You can download the form from your bank’s website or submit it online via net banking.
Submit the form at the beginning of the financial year to avoid unnecessary TDS deductions.
The form needs to be submitted every financial year.
(C) Example on How Form 15G/15H Helps
Case 1: Rohan (aged 45) earns ₹45,000 as FD interest but has no other taxable income.
Without Form 15G, the bank will deduct 10% TDS on ₹5,000 (₹45,000 – ₹40,000 threshold).
If he submits Form 15G, no TDS will be deducted.
Case 2: Meera (aged 65) earns ₹1,10,000 as FD interest, but her total taxable income is ₹3,80,000 (below ₹4 lakh).
Without Form 15H, the bank will deduct 10% TDS on ₹10,000 (₹1,10,000 – ₹1,00,000 threshold).
If she submits Form 15H, no TDS will be deducted.
Fixed deposits remain a reliable investment choice for those seeking safety and steady returns. However, TDS on FD interest can reduce your earnings, especially if your total income is below the taxable limit. With the Finance Act 2025increasing the TDS threshold under Section 194A from ₹40,000 to ₹50,000 for individuals (₹50,000 to ₹1,00,000 for senior citizens), fewer taxpayers will be affected by automatic TDS deductions. Additionally, submitting Form 15G (for individuals below 60) and Form 15H (for senior citizens) can help eligible investors avoid unnecessary tax deductions. By understanding these rules and using tax-saving strategies wisely, you can maximize your FD returns and improve your financial planning.
The GST Network (GSTN) has issued a new advisory on March 21, 2025, highlighting technical issues and important deadlines related to the GST Waiver Scheme. Many taxpayers have reported difficulties in filing applications under SPL-01 and SPL-02. The GSTN team is working on resolving these problems at the earliest.
This article covers:
✅ Common Issues in Filing SPL-01/SPL-02
✅ Correct Deadline for Filing Waiver Applications
✅ Last Date for Payment under the Waiver Scheme
✅ Alternative Payment Methods & Next Steps
1. Common Issues in Filing SPL-01 and SPL-02 Applications
Taxpayers have raised multiple technical grievances while filing waiver applications under the scheme. The following key problems have been identified:
🔹 Order number not available in dropdown (SPL-02) – Taxpayers are unable to select the relevant order while filing SPL-02.
🔹 Order details not auto-populating – Even after selecting an order in SPL-02, the details are not appearing automatically.
🔹 Payment details missing in Table 4 of SPL-02 – Taxpayers are unable to see their payment details auto-filled in the form.
🔹 Unable to make payments using “Payment Towards Demand” – Even after filing SPL-02, taxpayers are unable to make the required payment for the demand order. Similarly, payments made through DRC-03 are not getting adjustedusing DRC-03A.
🔹 Withdrawal of Appeal (APL-01) not working – Taxpayers who filed an appeal (APL-01) before the First Appellate Authority are unable to withdraw their applications as required under the waiver scheme.
📌 Action by GSTN: These issues are being actively worked on, and taxpayers are advised to raise grievance tickets for resolution.
2. Correct Deadline for Filing GST Waiver Applications
There is a misconception among taxpayers that the last date for filing waiver applications is March 31, 2025. However, this is incorrect.
As per Rule 164(6) of the CGST Rules, 2017, taxpayers can file waiver applications (SPL-01/SPL-02) within three months from the notified date.
✅ Final Date to File Waiver Applications:June 30, 2025
🚨 What You Need to Do: If you are eligible under the waiver scheme, you have time until June 30, 2025, to file your SPL-01 or SPL-02 applications.
3. Last Date for Payment Under the Waiver Scheme
📢 Deadline for Making Payment:March 31, 2025
As per Notification 21/2024-CT dated October 8, 2024, the due date for making the tax payment to avail the waiver scheme benefits is March 31, 2025.
✅ Taxpayers should use the “Payment Towards Demand” functionality on the GST portal to complete the payment before the deadline.
🚨 Important: If payment is not made before March 31, 2025, you will lose the benefits of the waiver scheme.
4. Alternative Payment Methods If Facing Issues
If taxpayers face technical difficulties in making payments under the waiver scheme, they can follow these steps:
🔹 Step 1: Make a Voluntary Payment using Form DRC-03 under the category ‘Others’.
🔹 Step 2: After making the payment, submit Form DRC-03A to link the payment made in DRC-03 with the relevant demand order.
🔹 Step 3: Verify payment details in the Electronic Liability Ledger before proceeding with the waiver application.
📌 How to Check Payment in the Electronic Liability Ledger?
➡️ Login to the GST portal
➡️ Navigate to Services > Ledgers > Electronic Liability Register
5. Key Takeaways for Taxpayers
✔️ Make payment by March 31, 2025 – Use “Payment Towards Demand” or DRC-03 + DRC-03A if facing issues.
✔️ File waiver applications (SPL-01/SPL-02) by June 30, 2025 – Do not rely on the March 31, 2025, date for filing applications.
✔️ Check the GST portal for auto-populated payment details before proceeding with filing.
✔️ Raise grievance tickets for any unresolved issues to ensure timely resolution.
📢 Final Reminder: The GST Waiver Scheme offers relief to businesses and taxpayers facing demand orders. Ensure you complete your payments by March 31, 2025, and file applications by June 30, 2025, to avail of the benefits. 🚀
TCS at 0.1% is collected on the sale of goods (except exports and certain specified goods).
TDS under Section 194Q also applies at 0.1% on the same transaction.
No double compliance (TCS & TDS confusion removed).
From 01.04.2025, sellers are NOT required to collect TCS on the sale of goods.
Section 206C(1) mandates TCS collection on the sale of specific goods like alcohol, timber, tendu leaves, and other forest produce.
The owner resided in it.
The owner could not reside due to business, profession, or employment reasons.
Up to two self-occupied properties, at the owner’s option, can have nil annual value (if no rent or benefit is derived).
The owner can choose two houses to be treated as self-occupied with nil annual value for tax purposes.
