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1 Income-tax (Fifth Amendment) Rules, 2025
1.1 Key Changes
1.2 Legal Authority
1.2.1 Implementation
1.2.2 Related

Income-tax (Fifth Amendment) Rules, 2025

The Central Board of Direct Taxes, via Notification No. 17/2025 dated February 24, 2025, has announced the Income-tax (Fifth Amendment) Rules, 2025, which modifies the Income-tax Rules of 1962. Below are the key changes introduced by these amendments:

Key Changes

  1. Amendment of Rule 12CA

    The previous Rule 12CA has been replaced with new provisions specifically for business trusts. Business trusts are now required to submit income distribution statements to both tax authorities and unit holders by specified deadlines using Forms 64A and 64B, respectively.
    • The income distribution statement must be submitted to the Principal Commissioner or Commissioner of Income-tax by June 15 of the financial year following the distribution and to the unit holders by June 30.
  2. Amendment of Rule 12CC

    Rule 12CC has also been updated to cater to securitisation trusts, which must submit their income statements to tax authorities and investors by specified dates using Forms 64E and 64F, respectively.
    • Similar to business trusts, the income statement must be submitted by June 15 to the tax authorities and by June 30 to the investors.
  3. Form No. 10IH Amendments

    In Appendix-II, certain tax rate references have been omitted from Form No. 10IH.
  4. Introduction of New Forms

    The amendment also introduces new forms, replacing the existing Forms 64A, 64B, 64C, 64D, 64E, and 64F.

These rules have been enacted under the powers conferred by various sections of the Income-tax Act, 1961, including sub-sections (1A) of section 115AD, (4) of section 115TCA, (4) of section 115UA, and (7) of section 115UB, in conjunction with section 295 of the Act.

Implementation

  1. Enforcement Date

    The provisions of the Income-tax (Fifth Amendment) Rules, 2025, will come into effect on the date of their publication in the Official Gazette.
  2. Procedures for Filing Forms

    The Principal Director General of Income-tax (Systems) is tasked with detailing the procedures for filing Forms 64A and 64E. This includes implementing appropriate security, archival, and retrieval policies regarding the statements of income filed. The administration of the generation and download of certificates from the web portal is also under his purview.
  3. Form Specifications

    All affected forms (64A to 64F) will also be revised to accommodate these new requirements.

This amendment serves to streamline and clarify the obligations of business and securitisation trusts concerning income distribution, enhancing compliance with the Income-tax Act.