Direct Tax
Cost Inflation Index (CII) for FY 2025-26 to compute long-term capital gains u/s 48 of the Income-Tax Act (the Act), notified.
Notification S.O. 2954(E) [No. 70/2025/F.No.370142/24/2025-TPL], dated 1 July 2025
The Central Government has notified the CII for FY 2025-26 as 376 for the purposes of computation of capital gains u/s 48 of the Act arising in AY 2026-27 and subsequent years.
IREDA bonds notified under section 54EC of the act.
Notification S.O. 3060(E) [No. 73/2025/F. No. 225/192/2023, dated 9 July 2025
As per section 54EC of the Act, an assessee can claim exemption of up to INR 50 lakh on long-term capital gains arising from the transfer of land, building, or both by investing in certain long-term specified assets. CBDT notifies certain bonds on a time-to-time basis as long-term specified assets.
The CBDT has now notified that bonds issued by the Indian Renewable Energy Development Agency (IREDA) on or after 9 July 2025, which are redeemable after 5 years, are classified as 'long-term specified assets' for claiming exemption under section 54EC of the Act.
Clarification issued on waiver of interest u/s 201(1A)(ii)/206C(7) of the act.
Circular No. 8/2025 [F. No. 275/92/2024-IT(B), dated 1 July 2025
CBDT had issued directive by issuing Circular No. 5/2025 dated 28 March 2025, providing relief to taxpayers facing technical issues while making TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) payments, stating that, if taxpayer initiates payment and the amounts is debited from its bank accounts on or before the due date but face delays in the actual crediting to the government due to technical glitches, the prescribed authority (i.e. (i.e. CCIT/ DG1T/ Pr.CCIT) may pass an order to waive the interest charged under sections 201(1A)(ii) and 206C(7) of the Act.
The CBDT has now clarified that an application can be filed for waiver of interest which was charged even before issuance of said circular if the application is filed within the timeframe of one year from the end of the financial year for which the interest is charged.
Relief from higher TDS/TCS rates where PAN was inoperative but made operative by 30 September 2025
Circular No. 9/2025 [F. No. 275/04/2024-IT(B)], dated 21 July 2025
As per section 206AA or 206CC of the Act, the deductor or collector is required to deduct tax or collect tax at a higher rate in case of PAN of the deductee is inoperative (as a result of non-linkage with Aadhaar).
Taxpayers filed grievances on receiving notices for short deduction/collection of TDS/TCS due to inoperative PANs, resulting in demands raised by the Department. To address this issue, the board notifies that, no liability on the deductor/collector to deduct/collect tax at higher rates provided under sections 206AA/206CC in the following cases:
- For payments/credits from 1 April 2024 to 31 July 2025, if PAN is made operative by 30 September 2025.
- For payments/credits on or after 1 August 2025, if PAN is made operative within two months from the end of the month of payment/credit.
In all such cases, standard TDS/TCS rates will still apply.
Indirect Tax
Customs
India extends anti-dumping duty on Chinese Aniline imports for five years, with rates up to USD 121.79 per metric ton.
Notification No. 25/2025-Customs (ADD) dated 18 July 2025
The Ministry of Finance has issued a notification continuing the anti-dumping duty on Aniline imports from China for five years. The notification imposes varying duty rates: USD 36.90 per metric ton for one specific producer and USD 121.79 per metric ton for other combinations. The duty applies to goods under tariff subheading 2921 41, originating from or exported through China. This supersedes the previous 2021 notification and remains effective for five years unless amended earlier. Payment must be made in Indian currency using applicable exchange rates.
Countervailing duties imposed on copper wire rods from four Asian countries under tariff heading 7408
Notification No. 06/2025-Customs (CVD) dated 3 July 2025
The Ministry of Finance imposed countervailing duties on continuous cast copper wire rods imported from Indonesia, Malaysia, Thailand, and Vietnam under customs tariff heading 7408. Duty rates vary by country and producer, ranging from nil to 10.27% of landed value. The duties apply for five years from the publication date and supersede previous notifications from January 2020.
Foreign Trade Policy
DGFT eases import process: Warehousing not mandatory if authorization is issued before Customs clearance
Policy Circular No. 02/2025-26-DGFT dated 22 July 2025
The DGFT has clarified the interpretation of Para 2.12 of FTP 2023, which permits clearance of goods shipped or arrived before the issuance of an import authorization, provided they are not yet cleared by customs. Previously, such goods were required to be warehoused before clearance.
However, the new clarification states that warehousing is not mandatory if the import authorization is obtained after shipment (as per Bill of Lading) but before customs clearance. This change addresses practical difficulties faced by importers and aligns with the policy’s intent to facilitate trade and reduce costs.
This relaxation does not apply to 'Restricted' items or those under State Trading Enterprises (STEs) unless specifically allowed by DGFT.