Direct Tax
No tax deduction shall be made in respect of specified payments made to a person being a unit of international financial services center.
Notification S.O. 2768(E) [NO. 67 /2025/ F. NO. 275/38/2025- IT(B)], dated 20 June 2025
The Central Government hereby notifies that no tax shall be deducted by any ‘payer’ on the payments specified in this notification if such payments are made to the notified units in an International Financial Services Centre (‘payee’).
Relaxation in the processing time for delayed Income Tax Returns (ITRs)
Circular NO. 7/2025 [F. NO.225/30/2025/IT A-II] and Order F. NO. 225/205/2024/ITA-II, dated 25 June 2025 and 9 June 2025
Second proviso to sub-section (1) of Section 143 of the Act, prescribes that intimation u/s 143(1) should be sent to assessee within nine months from the end of financial year in which the return was filed.
CBDT has decided to relax the time frame for sending the intimation u/s 143(1) in following cases where the returns could not be processed within the prescribed time i.e., due to technical reasons:
| Type of electronically filled Return of Income | Extended time limit to send intimation u/s 143(1) | Non-applicability of relaxation |
|---|---|---|
| Return filled on or before 31 March 2024, in pursuant to order u/s 119(2)(b) | 31 March 2026 | Assessment/reassessment completed subsequent to filing of return u/s 119(2) (b). |
| Returns of income filed u/s 139 of the Act for Assessment Year 2023-24 | 30 November 2025 | Return selected for scrutiny or unprocessed due to reason attributable to assessee. |
In cases where PAN-Aadhaar is not linked, refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made.
Protocol amending agreement between the governments of India and Oman on avoidance of double taxation and prevention of fiscal evasion regarding income taxes.
Notification S.O. 2858(E) [NO. 69/2025/F. NO. 501/6/1991-FTD-II], dated 25 June 2025
The Indian Ministry of Finance has officially announced a protocol amending the DTAA between the Republic of India and the Sultanate of Oman.
The protocol became effective on 28 May 2025, however the amended provisions will apply to income derived in any fiscal year beginning on or after 1 April following the protocol’s entry into force in India i.e. 1 April 2026.
Some of the key changes are:
- Reduction in withholding tax rates on royalties and technical fees from 15% to 10%
- Introduction of new articles on non-discrimination, enhanced exchange of information, and assistance in the collection of taxes.
- Updated definition for ‘competent authority’ and ‘tax year.’
- Revised rules for determining residency for nonindividuals.
Indirect Tax
Customs
Government implements Integrated Customs Electronic Tablets (ICETABs) for streamlined export examination and clearance
Circular No.17/2025- Customs dated 19 June 2025
Effective 19 June 2025, the digital platform allows officers to access shipping bill details, RMS instructions, examination orders, and supporting documents, thereby eliminating the need for physical paperwork. Officers shall upload examination reports along with cargo images, which will be securely stored in the e-Sanchit system for audit and reference. The Directorate General (DG) of Systems will issue a comprehensive advisory outlining operational procedures.
In case ICETAB is non-functional, examination reports may be submitted through alternate means with prior approval of the Assistant Commissioner. The jurisdictional Commissioner of Customs will conduct periodic reviews to monitor implementation and coordinate with DG Systems to resolve any issues.
Government imposes definitive anti-dumping duty on import of specified aluminum foils, plastic processing machinery, and herbicides from China PR
Notification No 15/2025-Customs (ADD), Notification No 17/2025-Customs (ADD) dated 19 June 2025, Notification No 21/2025-Customs (ADD) dated 26 June 2025
The Government of India has imposed definitive anti-dumping duty at varied rates on imports of following items from PR China, for a period of 5 years.
- Aluminum foils up to 80 Micron (Chapter 76)
- Herbicides namely Pretilachlor (Chapter 29)
- Plastic Processing Machinery (Chapter 84) manufactured by specified manufacturers based out of China and Taiwan
Foreign Trade Policy
Rollout of ‘Source from India’ on Trade Connect e-Platform for all Status Holders
Trade Notice No. 05/2025-26 dated 13 June 2025
‘Source from India’ on the Trade Connect portal is a dedicated platform for international buyers to discover verified Indian exporters. Indian exporters can create micro pages with product and company details, visible publicly upon approval at https://www.trade.gov.in/pages/source-from-india. Initially piloted with Three, Four, and Five-Star Manufacturer Exporters, the service is now extended to all Status Holders (with valid Importer Exporter Code not under Denied Entity List).