Latest news with #FinanceAct2025
India.com
02-06-2025
- Business
- India.com
No DA Hike, Pay Commission Benefits For Retired Govt Employees? Claims Vs Facts DECODED
photoDetails english 2909870 Updated:Jun 02, 2025, 12:51 PM IST Decoding Rules Of New Finance Act 2025 On DA, Pay Commission Benefits: Claims Vs Facts 1 / 9 Has the Center has decided to eliminate important post-retirement perks for retired government employees? Reports circulating in several media assert that under the new rules, pensioners will no longer get dearness allowance hikes or benefits from future pay commissions, including the 8th Pay Commission. According to the reports, the regulation changes are being brought due to the Finance Act 2025. What is amendment to Rule 37 of the CCS (Pension) Rules, 2021? 2 / 9 There is an amendment to Rule 37 of the CCS (Pension) Rules, 2021. The Department of Pension and Pensioners' Welfare has introduced an amendment to Rule 37(29)(c). The amended Rule 37(29)(c) states, "… the dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also and in the event of his dismissal or removal or retrenchment the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking.' Decoding the Rule 37 of the CCS (Pension) Rules, 2021 3 / 9 According to the amended Rule 37(29)(c) if a PSU employee who previously worked for the government is fired for wrongdoing, all of his retirement benefits may be forfeited. A pension from his prior government service is one of these benefits. This represents a significant change from the previous regulation, rule stated that pension payments from past government employment should not be impacted by termination from a PSU. Will Govt employees cease to get DA hikes and Pay Commission benefits? 4 / 9 Examining the allegations of the reports that the new rules in the Finance Act 2025 are depriving retirees of their pension and other retirement benefits, it becomes clear that the modification of Rule 37 has nothing to do with pay commission benefits or dearness allowance. Will Govt employees be deprived of DA, Pay Commission Hikes? 5 / 9 Therefore, the claims that say that dearness allowance hikes and Pay Commission benefits have been removed for retired government employees and linking this amendment to the Finance Act are NOT TRUE. The only pertinent rule change concerns PSU employees who were dismissed for misconduct and absorbed from the government service. Finance Bill 2025: What has the govt said? 6 / 9 It is important to note that the government has not issued any official notification or confirmation about any such changes. Finance Bill 2025: FM Clarification 7 / 9 When the Finance Bill 2025 was passed in Parliament a controversy was sparked regarding a clause about pensions. The clause, according to employees' unions, was detrimental to retirees and led to a gap between old and new pensioners. To resolve the issue, Finance Minister Nirmala Sitharaman then provided clarification in Parliament. According to her, the clause did not change civil or defense pensions. It only restated rules that have been in place since June 1, 1972. The Department of Pension & Pensioners' Welfare also stated that the pension parity introduced by the 7th Central Pay Commission would continue to exist. Govt announced a 2 percent increase in DA 8 / 9 The central government had in March announced a 2 percent increase in Dearness Allowance and Dearness Relief for central employees and pensioners. Central government employees were given the hiked salary for March along with arrears for January and February. DA For July-December 2025 Due 9 / 9 The central government employees and pensioners are waiting for the next DA hike update for the July to December 2025 period. The revision is expected to be announced around October or November.
Mint
21-05-2025
- Business
- Mint
Income Tax: After ITR-1 to ITR-7, CBDT notifies ITR-U. All you need to know about the latest changes
After notifying all income tax forms from ITR-1 to ITR-7, Central Board of Direct Taxes (CBDT) has now notified ITR-U (updated) as well via notification dated May 19, 2025. To encourage voluntary compliance, the Government of India, via Finance Act 2025, extended the time limit to file the updated return from 24 months to 48 months from the end of the relevant assessment year. Notably, filing an updated return leads to additional tax payable. From the additional 24 months to 36 months -- additional tax payable is 60 percent of the aggregate of tax and interest payable. And the additional tax payable will be 70 percent of the aggregate of tax and interest during the period of 36 to 48 months. Those who are not aware, the provision of income tax return (updated) was first introduced in Finance Act 2022 to allow the taxpayers to rectify the errors of omission and commission they may have made while estimating their income for tax payment. That time, the maximum time period that was given for filing an updated return was two years from the end of the relevant assessment year. Unlike the regular deadline of July 31, the updated return's deadline is March 31. For instance, March 31 2025 was the last date to file updated returns for FY 2021-2022. Read this Livemint article for further details on this. First of all, the time limit has been extended from current two to four years per the Finance Bill 2025. The latest notification also incorporates the following changes aside from extending the time limit from two years to four: 1. Show cause notice: An updated return can not be filed if show cause notice under section 148A has been issued after 36 months from the end of the relevant assessment year. However, later if 148A(3) order is passed saying that it is not a valid case for notice under section 148, then an updated return can be filed within 48 months from the end of relevant assessment year. 2. Additional income tax: As explained above, the updated return entails payment of additional income tax for the extended timelines. As a result, section 140B has been amended accordingly. 3. CBDT notification also highlighted that rule 12AC has also been amended to reflect these changes. There are a number of cases when taxpayers are not permitted to file an updated ITR. These include the following: I. When after the ITR -U (updated), total income leads to smaller tax liability. II. When it is being filed to claim tax refund. III. When a survey has already been conducted, or search has already been initiated against the taxpayer IV. Additionally, when the tax department has seized taxpayer's documents. For all personal finance updates, visit here.
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Business Standard
20-05-2025
- Business
- Business Standard
India's new import policy for gold, silver, platinum: What it means for you
India has announced changes to its import policy for precious metals, tightening restrictions and standardising names and codes for international trade. The Directorate General of Foreign Trade (DGFT) notified the new policy on May 19, aligning rules with the Finance Act 2025. The policy has stricter restrictions and a revised harmonised system (HS) codes for importing gold, silver, and platinum, impacting both individual investors and the bullion trade. New Indian Rules for Gold Import The import of gold, particularly in unwrought and semi-manufactured forms, will now be allowed only through authorised channels. According to DGFT's notification: Gold containing 99.5 per cent or more purity by weight (HS code 71081210 and 71081310) has been classified as Restricted. Import will be permitted only through: Nominated agencies notified by the Reserve Bank of India (RBI) or DGFT 'Qualified jewelers' approved by the International Financial Services Centres Authority (IFSCA), importing via the India International Bullion Exchange (IIBX) India-UAE TRQ holders under CEPA who can import gold through IIBX and receive delivery via IFSCA-registered vaults in SEZs Gold dore which refer to a bar or a mixture of gold and silver which is usually produced during mining and refining process or scrap gold, can be imported by refineries under a valid licence with actual user condition Certain codes such as 71081200 and 71081300 for 'non-monetary' gold have been deleted, with new, more specific entries created for clarity and control. New Indian rules for Silver imports Access will be only through authorised agencies Silver bars containing 99.9 per cent or more purity (HS code 71069120) are now under the restricted category. Imports can only be carried out through: RBI-notified banks DGFT-nominated agencies IFSCA-qualified jewellers via IIBX However, semi-manufactured silver bars under codes 71069221 and 71069229 will remain under free import, subject to RBI regulations. Platinum import rules Codes for unwrought platinum have been revised. While highly pure platinum (99 per cent or more) under HS 711011111 and 71101121 is marked Free, other categories fall under the Restricted bracket. Several earlier codes like 71101110 and 71101910 have been deleted to streamline the structure. What This Means for Investors and Jewellers The notification makes it clear that the government is pushing for more traceable and secure bullion imports. This will:
Mint
07-05-2025
- Business
- Mint
Block assessment 2.0: A sharper, fairer tax enforcement framework
The reintroduction of block assessment regime in Finance Act (No 2) 2024 marked a significant evolution in tax enforcement framework. The regime, applicable to search and requisition proceedings initiated on or after 1 September, 2024, was aimed at reinforcing the government's efforts to curb tax evasion and bring greater focus to taxation of undisclosed income. The initial structure of tax provisions raised concerns among taxpayers, particularly due to interpretational ambiguities and risk of additional taxation on already disclosed income. These concerns necessitated a timely recalibration of tax law and corresponding compliance filings. Under Section 158BC(1) of the Income-tax Act, taxpayers subjected to search proceedings were previously required to disclose their "total income", including both undisclosed and previously disclosed components in tax return filed pursuant to block assessment notices. Application of a flat 60% tax rate on the entire reported income resulted in undue hardship, particularly for those whose previously disclosed income was subjected to the same penal treatment as freshly unearthed undisclosed income. This approach not only created inequitable tax outcomes but also contravened the broader principles of fair and proportionate taxation. Recognising the need for corrective action, the Finance Act 2025 introduced a significant amendment by substituting the term "total income" with "total undisclosed income" in Sections 113 and 158 of the Income Tax Act. Although seemingly a minor semantic change, this amendment fundamentally altered the scope of block assessments. It clarified that only income unearthed during search proceedings would be subject to an elevated tax rate, thereby safeguarding bonafide earlier disclosures from disproportionate penal consequences. Importantly, while the 60% tax rate remains unchanged, its retrospective application from September reinforces the government's commitment to legislative clarity and equitable treatment of taxpayers. Also Read: ITR filing for FY 2024-25: What has changed and what you need to know Complementing these legislative changes, the Central Board of Direct Taxes, through a notification on 7 April, 2025, introduced Rule 12AE in the Income-tax Rules, along with Form ITR-B. This new form, tailored specifically for block assessments, is designed to streamline compliance and enhance transparency. By focusing solely on income pertaining to block period, Form ITR-B simplifies taxpayer reporting obligations while providing a structured framework for accurate reporting. It requires detailed disclosure of undisclosed income, classified by heads of income, assessment year-wise, and assets segregated into specific categories such as money, bullion, jewellery, virtual digital assets, etc. This granular level of reporting facilitates more efficient examination and assessment of unexplained assets and undisclosed income. Additionally, the form permits taxpayers to claim credit for TDS and TCS on such undisclosed income, subject to verification by the tax department. Also Read: Faceless tax assessments are a game changer. But there is scope for improvement. Unlike ITR-U, ITR-B is a paragon of precision, requiring only pertinent disclosures. This focused design ensures simplicity for taxpayers and enhances scrutiny efficiency for the Revenue Authorities. Yet few procedural inconsistencies could be seen in the verification section of Form ITR-B. Despite being mandated for electronic filing for all category of taxpayers, the form still references manual signatures, receipt stamp number, and receiving official's seal – seemingly outdated requirements, that runs counter to broader objective of digital compliance. These discrepancies should be promptly addressed to avoid confusion and ensure consistency in procedural norms. Collectively, the legislative and procedural reforms introduced regarding block assessments reflect a constructive effort by the government to enhance fairness and transparency in tax administration. By distinguishing undisclosed and previously reported income and establishing a streamlined compliance mechanism, the new reporting framework strikes a measured balance between deterrence and fairness. Moving forward, addressing residual anomalies, particularly in relation to the verification section of Form ITR-B, would be crucial in fostering taxpayers' confidence and ensuring effective implementation of the revised reporting regime. Sandeep Jhunjhunwala is partner, Nangia Andersen LLP. Inputs from Sanjay Kumar, director, Nangia Andersen LLP. Views are personal. Also Read: After the Budget, updating ITR may cost you more than a reassessment
News18
22-04-2025
- Business
- News18
Income Tax: Your ITR This Year Will Be Compared With Last Year; Know How You Can Avoid Trouble
Last Updated: The government has amended Section 143 of the Income Tax Act to allow comparison of a taxpayer's current ITR with their previous year's return. As the income tax filing 2025 is expected to be rolled out soon, there is a new rule this year that every income tax return (ITR) filer must know. According to the Finance Act 2025, your this year's ITR will be compared with the ITR you filed last year. This change is aimed at tightening tax compliance, reducing under-reporting, and enabling better scrutiny of income and deduction patterns. 'In a move aimed at tightening tax compliance, the government has amended Section 143 of the Income Tax Act to allow comparison of a taxpayer's current ITR with their previous year's return. This change enables the income tax department to flag discrepancies or sudden changes in income, deductions, or tax liability at the preliminary processing stage itself," said Rajarshi Dasgupta, executive director (tax) of AQUILAW. Section 143 of the Income Tax Act provides for a summary assessment of the ITR filed wherein the primary aspect of verification pertains to arithmetical accuracies and consistencies in the information shared within the return itself. 'After summary assessment, the ITR could be subject to detailed scrutiny. Earlier, such comparisons were typically reserved for detailed scrutiny cases. With this amendment, the department can now assess inconsistencies right at the time of routine return processing under Section 143(1)," Dasgupta added. He added that such verification at the early stages will definitely boost the correctness of returns filed wherein the information furnished in returns having a bearing or reference from a previous year's return will be checked expeditiously. This shall help the department as well as the taxpayers wherein notices can be avoided with penal implications in case bonafide errors are corrected on the basis of such comparison. 1. Ensure income from all heads is accurately reported and supported by documents such as Form 16, bank statements, rent agreements, or capital gain statements. 2. If you're claiming new deductions or a higher deduction amount, ensure that it's well-documented and legitimate. A sudden spike in deductions could invite further inquiry. 3. Reconcile your TDS details before filing the return to avoid discrepancies. 4. If high-value transactions such as cash deposits, mutual fund purchases, and property deals are absent in your previous ITR but present this year, ensure that they are disclosed and justified, especially if they contribute to a significant increase in income or asset holdings. 5. If you have capital or business losses from the previous year and wish to carry them forward, ensure that they were properly reported in last year's ITR. 6. Any inconsistency — like claiming deductions under the old regime after opting for the new one — can lead to the return being marked defective. 8. If your income has drastically dropped or risen — due to job loss, career switch, inheritance, or any other reason — attach relevant disclosures or explanations in the ITR form or in response to queries raised post-filing.
