Direct Tax
Capital Gains Account Scheme Updates – Amendment and Authorization of Banks
Notification No.161/2025 F. No. 370142/23/2024-TPL] /S.O. 5293(E) Dated – 19 November 2025
The Ministry of Finance has issued the Capital Gains Accounts (Second Amendment) Scheme, 2025, updating the Capital Gains Accounts Scheme, 1988. The amendment incorporates Section 54GA (Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone) across various paragraphs and expands the definition of “Deposit Office” to include authorized branches of SBI, subsidiary banks, corresponding new banks, and any notified banking company. A separate notification no. 162/2025 is also issued specifying the banking companies which are to be considered as deposit office for this purpose.
A key reform introduces “electronic mode” as a valid method for deposits, covering credit/debit cards, net banking, IMPS, UPI, RTGS, NEFT, and BHIM Aadhaar Pay. The amendment clarifies that the effective date of deposit, whether made through cheque, draft, or electronic mode, shall be the date of receipt by the deposit office. Passbooks and statements may now be furnished electronically. Further, from 1 April 2027, option of closure of accounts shall be furnished electronically using digital signatures or electronic verification codes.
India Enforce Amended DTAA with Belgium from June 2025 to avoid tax evasion
Notification S.O. 5074(E) [NO. 160/2025/F. No. 505/2/1989-FTD-I] Dated – 10 November 2025
The Protocol, amending the Double Taxation Avoidance Agreement (DTAA) between the Governments of India Belgium was signed on 9 March 2017, in New Delhi and was entered into force on 26 June 2025. The Ministry of Finance, through Notification No. 160/2025 dated 10 November 2025, has announced the enforcement of the Protocol formally giving effect under Section Section 90 of Income tax Act, 1961.
Key modification made to the original DTAA through this amendment protocol is in Article 26 on “Exchange of Information”. Now the authorities of both countries shall exchange such information, including documents, as is foreseeably relevant concerning taxes of every kind and description imposed on behalf of contracting states. Earlier the scope was limited to only information necessary concerning taxes covered by the agreement. Further, the clauses below are added in Article 26:
4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
The above has led to broadening the scope of information exchange for tax enforcement and administration, including access to information held by banks, financial institutions, etc.
CBDT Launches Second NUDGE Initiative to Strengthen Voluntary Compliance on Foreign Assets
Press Release Dated – 27 November 2025
CBDT launched its first Nonintrusive Usage of Data to Guide and Enable (NUDGE) campaign in November 2024 which was a successful campaign as many taxpayers had filed revised returns to ensure accurate reporting of foreign assets (Schedule FA) and foreign-source income (Schedule FSI). Considering the same, CBDT has started its second NUDGE campaign to enhance voluntary compliance for disclosure of foreign assets. The government using data received under the Automatic Exchange of Information (AEOI), Common Reporting Standards (CRS), and FATCA, started sending SMS and emails from 28 November 2025, requesting taxpayers to review and revise returns on or before 31 December 2025 to avoid penal consequences. Hence, all taxpayers should revisit their foreign assets and their disclosures in filed ITR and take appropriate action for disclosure to comply fully with statutory obligations.
Indirect Tax
Customs
CBIC’s upgraded SWIFT 2.0 platform to offer seamless NOCs from over 60 Partner Government Agencies
Circular No. 29/2025-Customs Dated 21 November 2025
The CBIC is proposing to rollout an upgraded, unified, and fully digital Single Window Interface for Facilitating Trade platform (SWIFT 2.0) that will provide a single touch point for importers, exporters, other stakeholders and all Partner Government Agencies (PGAs) like Food Safety and Standards Authority of India (FSSAI), Plant Quarantine (PQ), Animal Quarantine and Certification Services (AQCS), Central Drugs Standards Control Organization (CDSCO), Wildlife Crime Control Bureau (WCCB), and Textile Committee (TC). Under SWIFT 2.0, it is proposed to onboard over 60 PGAs in a phased manner. Features include online submission, tracking, payments, scheduling of visual inspections and issuance of digital No Objection Certificates (NOCs) by the PGAs.
Online module for MOOWR and MOOSWR permissions operationalized on ICEGATE 2.0
Circular No. 28/2025-Customs dated 15 November 2025
An online module to process applications for permissions under Section 65 of Customs Act for warehoused licenses under MOOWR (warehouses licensed under Section 58) and MOOSWR (special warehouses licensed under Section 58A) schemes has been operationalized. Detailed user manuals have been made available for both trade and departmental officers.
litis Vaccine (inactivated and live) and Monocomponent Insulins has been removed.Foreign Trade Policy
DGFT clarifies on redemption of Advance Authorizations affected by pre-import litigation & erstwhile refund restriction
Policy Circular No. 07/2025-26 Dated 11 November 2025
The DGFT has clarified that Export Obligation Discharge Certificates (EODC) should not be withheld for Advance Authorizations affected by the erstwhile Rule 96(10) of the CGST Rules for imports between 13 October 2017 and 9 January 2019, provided all other requirements are duly fulfilled in the following cases - (i) IGST was paid in cash at the time of import clearance, (ii) the applicant did not avail exemptions from IGST, Compensation Cess or other levies (except Basic Customs Duty), or (iii) the applicant has complied with the prescribed pre-import and other procedural requirements.
The clarification has been issued pursuant to difficulties faced by exporters in obtaining redemption of Advance Authorizations that were subjected to pre-import conditions and the consequent Supreme Court decision in UOI vs. Cosmo films Limited [2023-VIL-47-SC].