Direct Tax
Twenty-Second Amendment to Income-Tax Rules, 2025 – Insertion of Rules 3C And 3D
Notification G.S.R. 555(E) [NO. 133/2025/F. NO. 370142/27/2025-TPL] dated 18 August 2025
CBDT has notified the Income-tax (Twenty-Second Amendment) Rules, 2025, inserting Rule 3C and Rule 3D to the Income-tax Rules, 1962.
- As per Section 17(2)(iii), perquisites include the value of any benefit or amenity provided to an employee (other than a director or an employee having substantial interest in a company) by employer, where the employee’s salary excluding non-monetary benefits exceeds prescribed amount during the relevant financial year. Rule 3C is inserted to prescribe the salary as INR 400,000 for the purpose of the said sub-.
- As per clause (vi) of proviso to Section 17(2), expenditure incurred by employer on medical treatment of employee or family of employee, travel and stay abroad for such treatment shall not be taxable as perquisite provided the gross total income of employee excluding such expenditure does not exceed specified limits. Rule 3D is inserted to prescribe the gross total income limit as INR 800,000 for the purpose of the said clause.
Indirect Tax
Customs
No import duty on import of cotton till 31 December 2025
Notification No. 35/2025-Customs (Tariff) dated 18 August 2025 and Notification No. 36/2025-Customs (Tariff) dated 28 August 2025
The Ministry of Finance has granted exemption from Basic Customs Duty (BCD) and Agriculture Infrastructure & Development Cess (AIDC) on imports of all forms of raw cotton falling under CTH 5201. The said relief has come into force w.e.f. 19 August 2025 and will remain valid up to and inclusive of 31 December 2025.
Government revises duty drawback rates for gold and silver jewelry/articles
Notification No. 51/2025-Customs (NT) dated 25 August 2025 r/w Notification No. 77/2023-Customs (NT) dated 20 October 2023
| Tariff Item | Earlier DBK Rate | Revised DBK Rate |
|---|---|---|
| 711301 – Articles of jewelry (Gold) | INR 335.50 | INR 466.76 |
| 711302 – Articles of jewelry (Silver) | INR 4468.10 | INR 5234.00 |
| 711401 – Articles of silver | INR 4468.10 | INR 5234.00 |
Note: The above rates are prescribed on a per 10-gram basis.
Government extends anti-dumping duty levy on certain products
| Notification No. | Date | Tariff item | Country | Extension upto |
|---|---|---|---|---|
| 26/2025-Cus (ADD) | 4 August 2025 | Black Toner (Powder) | China PR, Malaysia, and Taiwan | 5 years |
| 27/2025-Cus (ADD) | 6 August 2025 | Flax Fabric | China PR and Hong Kong | 9 February 2026 |
| 28/2025-Cus (ADD) | 19 August 2025 | Toluene Di-lsocyanate (TDI) | European Union and Saudi Arabia | 1 March 2026 |
| 29/2025-Cus (ADD) | 19 August 2025 | Fluoroelastomers (FKM) | China PR | 26 February 2026 |
CBIC updates Authorized Officers for additional 6 Entry Points for food imports
Instruction No. 25/2025-26-Customs dated 6 August 2025
CBIC has updated the list of Authorized Officers (FSSAI officials and Customs officials) at 6 points of entry for food imports, taking the total to 165. The new entry points are included in the states of Assam, Tamil Nadu, Chhattisgarh, Gujarat, and Orissa. Accordingly, importers must ensure that food consignments are routed only through these notified points, where FSSAI-authorized officers are available. Shipments at non-notified locations risk delays, non-clearance, or rejection.
CBIC issues guidelines for export of items suspected to be covered under SCOMET
Instruction No. 26/2025-26-Customs dated 14 August 2025
CBIC has clarified that the Directorate General of Foreign Trade (DGFT) remains the ultimate authority on the issue of classification of SCOMET items. An Inter-Ministerial Working Group (IMWG) under the DGFT is specifically tasked with providing final determination on SCOMET classifications.
To make the process more transparent and efficient, CBIC has established an online repository of SCOMET classification clarifications. Customs officers have been directed to first consult this repository before escalating any matter. If the classification remains unresolved, the case should be referred (with the prior approval of Commissioner) to the Single Nodal Point for Strategic Controls in CBIC i.e., Customs-III Section in Customs Policy Wing.
It has also been reiterated that there is no requirement for a Chartered Engineer certificate for SCOMET classification and export clearance.
Foreign Trade Policy
DGFT revises norms for Diamond Imprest Authorizations to Two Star Export Houses
Notification No. 25/2025-26-DGFT dated 19 August 2025
DGFT has amended the norms for issuance of Diamond Imprest Authorization to Two Star Export Houses. Now, such exporters can submit a Chartered Accountant certificate in place of the latest Income Tax Return (ITR), if it is not yet filed, with the condition that proof of filing the ITR must be furnished by 31 December of the application year.
Moreover, the imports under Diamond Imprest Authorizations are no longer exempted from whole of IGST and Compensation Cess. On the other hand, the exemption from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-Dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable, continues.
India imposes port restrictions on import of certain goods from Bangladesh
Notification No. 24/2025-26-DGFT dated 11 August 2025
DGFT has restricted with immediate effect import of certain jute-related products, including bleached and unbleached woven fabrics, twine, cordage, ropes, and sacks from Bangladesh. Such goods are no longer allowed from any land port on the India-Bangladesh border. On the other hand, they are allowed only through Nhava Sheva Seaport.
DGFT relaxes Export Obligation period under Advance Authorizations for chemical products
Notification No. 28/2025-26 dated 28 August 2025
DGFT has removed the 180-day export obligation limit for Advance Authorization holders importing products that are subjected to mandatory QCOs by the Department of Chemicals and Petrochemicals. Henceforth, the export obligation must be fulfilled within 18 months, as prescribed under Para 4.40 of Handbook of Procedures.
DGFT suspends SIONs for food products
Public Notice No. 20/2025-26 dated 26 August 2025
DGFT has suspended the Standard Input Output Norms (SIONs) for several food products, including confectionery, biscuits, rice, refined mustard oil, starches, and other ingredients. Exporters of these items can no longer rely on the suspended SIONs to claim duty-free imports. Instead, they must apply under the Advance Authorization scheme using self-declaration or norms fixed by the Norms Committee.