Analysis of Notifications and Circulars for Week ending 15th June 2025

Notifications & Circulars issued during week (9^th – 15^th June 2025)

A. Income Tax

Exemptions to Greater Noida Industrial Development Authority: Greater Noida Industrial Development Authority, an authority constituted under the U.P. Industrial Area Development Act, 1976 has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Income-tax Act.

(Link: Income Tax Notification 55/2025 Dated 10/06/2025)

National Bank for Agriculture and Rural Development (NABARD)  Zero Coupon Bond notified under section 2(48): The Central Government specifies the Ten year Zero Coupon Bond of NABARD as zero coupon bond under section 2(48) Income Tax Act. The duration of the bond is ten years eleven months thirteen days, to be issued on or before the 31^st day of March, 2027, the amount to be paid on maturity or redemption of the bond is Rs.1,00,000/- for each bond,  the number of bonds to be issued is 19.50 lakhs, for Rs 19500 Crores.

— A Zero Coupon Bond (ZCB) is a financial instrument that does not pay periodic interest (coupon) during its tenure. Instead, it is issued at a discount and redeemed at its face value upon maturity. The difference between the issue price and face value represents the return for investors. If held beyond 12 months, the long term capital gainswill attract a 12.5% tax rate. If sold before 12 months, the short term capital gains will be taxed as per the bondholder’s income tax slab. 

(Link: Income Tax Notification 56/2025 Dated 12/06/2025)

Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2025-26: The guidelines specify the parameters and procedures for selection of cases. Returns will be compulsorily scrutinized in cases involving surveys conducted under Section 133A of the Income-tax Act on or after 1^st April 2023. Similarly, cases where search operations under Section 132 or requisitions under Section 132A were initiated between 1^st April 2023, and 31^st March 2025, will also face mandatory scrutiny. For search and survey cases, returns will generally be transferred to Central Charges within 15 days of notice issuance.

— Moreover, returns filed in ITR-7 by assessees claiming tax exemption/deduction will be subject to compulsory scrutiny if their registration or approval under various sections (e.g., 12A, 12AB, 10(23C)) was not granted, cancelled, or withdrawn by March 31, 2024, unless reversed on appeal. Cases with recurring additions from earlier assessment years exceeding Rs. 50 lakh in eight major metro cities or Rs. 20 lakh elsewhere, where such additions have become final or upheld by appellate authorities, will also be selected. Additionally, returns will be scrutinized if specific information pointing to tax evasion for the relevant assessment year is provided by any law-enforcement or regulatory agency and the return has been filed.

(Link: Income Tax CBDT Guidelines Dated 13/06/2025)

CBDT extends processing deadline for AY 2023-24 ITR filed under section 139 to 30^th November 2025:  Using its powers under Section 119(2)(a), the Board has relaxed the time limit specified in Section 143(1), allowing valid ITRs, where the intimation period has lapsed, to be processed by 30^th November 2025. However, this extension excludes returns selected for scrutiny or those unprocessed due to issues attributable to the assessee.

(Link: Income Tax CBDT Order Dated 09/06/2025)

Guide to Filing of ITR after Condonation of Delay in Return Filing:  The Income Tax has released  user manual titled ‘Filing of ITR after Condonation of Delay’. It guides taxpayers who, due to genuine hardship, failed to file their income tax returns on time and wish to claim refunds or carry forward losses. Taxpayers in such situations have two options:

1.file ITR-U under Section 139(8A) with additional taxes and within a limited time window, or

2. file ITR under Section 139(9A) after getting condonation approval under Section 119(2)(b), which exempts them from additional penalties and interest.

It provides practical support for taxpayers navigating delayed ITR filings due to reasonable cause.

(Link: Income Tax Use Manual Guide Dated 09/06/2025)

SC, Combined deductions under sections 80-IA & 80-HHC cannot exceed profits: Case of Shital Fibres Limited vs CIT, SC Judgement Dated 20th May 2025. The apex Court held that if a deduction of profits and gains under Section 80-IA of Income Tax Act is claimed and allowed, the deduction to the extent of such profits and gains in any other provision under the heading ‘C’ is not allowed. Thus combined deductions under sections 80-IA & 80-HHC cannot exceed profits.

HC, TRACES data gap, directs TDS credit processing on company provided cheque & bank details: Case of KJP and Associates vs DCIT, HC Delhi Judgement Dated 9th May 2025. The Court, after reviewing the submissions and the internal communications of the tax department, found the AO’s inaction to be problematic. The court observed that while TRACES data might be unavailable for the specified period, the comprehensive details provided by the petitioner including cheque numbers, bank accounts, and deposit dates, offered a verifiable alternative. The court noted that no attempt had been made to verify these details directly from the concerned banks. It directed the AO to consider the response as correct, unless it determines otherwise, and process the petitioner’s request on the aforesaid basis as expeditiously as possible and preferably within a period of eight weeks.

HC excludes prior year losses from Tax Effect calculation for CBDT circular threshold: Case of CIT vs Sis Live, HC Delhi Judgement Dated 7^th May 2025. HC has clarified that losses from previous assessment years are not to be included when computing the “tax effect” for determining whether an appeal falls within the monetary limits set by CBDT circulars. The court’s refusal to allow the Revenue to expand the definition of “tax effect” beyond what is explicitly provided in the circular is consistent with the notion that the department is bound by its own instructions.

(Link: HC Delhi Judgement Dated 07/05/2025)

HC, AWS Cloud Computing Service receipt not taxable as equipment royalty: Case of CIT vs Amazon Web Services, HC Delhi Judgement Dated 29th May 2025. HC held that amount received by assessee from Indian entities for rendering cloud computing services are not taxable as equipment royalty thus the payments received cannot be considered as royalties within the meaning of Article 12(3) of the India-US DTAA.

B. GST

Generation and quoting of Document Identification Number (DIN) on communication by the CBIC officers to tax payers and other persons:  The communications generated via the GST common portal already include a Reference Number (RFN), which is verifiable online and provides essential document details such as issuance date, type, and originating office. As per Section 169 of the CGST, serving documents electronically through the common portal fulfills statutory requirements, rendering additional DIN quoting redundant. It emphasizes that RFN- bearing communications are valid without DIN, streamlining the process while maintaining traceability.

(Link: GST Circular 249/2025 Dated 09/06/2025)

Advisory, System validation for filing of refund applications on GST portal for QRMP: GSTN had implemented a system validation on the GST Portal in May 2025, mandating that all due GSTR-1 and GSTR-3B returns (or other specific returns for certain taxpayer types) must be filed before a refund application can be submitted. This new validation caused issues for Quarterly Return Monthly Payment (QRMP) scheme taxpayers, as the system did not correctly recognize invoices furnished through the Invoice Furnishing Facility (IFF) for the initial two months of a quarter (M1 and M2). This oversight prevented QRMP taxpayers from filing their refund applications, particularly when attempting to do so between quarters. GSTN has since resolved this technical problem. However, invoices furnished via IFF that do not yet have a filed GSTR-3B should not be included in the refund claim.

(Link: GSTN Advisory Dated 10/06/2025)

Advisory on filing of Amnesty applications under Section 128A of the CGST: it has come to notice that certain taxpayers are facing difficulties in filing amnesty applications under Section 128A on the GST portal. taxpayers who are facing technical issue which is restricting them to file waiver application are advised to adopt the steps outlined in the given link, whereby the applicants are advised to adopt the alternative route of manual entry of order details on the portal.

(Link: GSTN Advisory Dated 11/06/2025)

Advisory, Filing of SPL-01/ SPL-02 where payment made through GSTR 3B and other: While filing amnesty applications in Form SPL-01 or SPL-02 under Section 128A of the CGST Act, 2017, some taxpayers are facing technical issues related to auto population of payment details in Table 4 of the forms, in cases of, amount paid through “payment towards demand order” functionality, pre-deposit amount details, or payment made through GSTR 3B. Taxpayers are advised to proceed with filing of waiver application as GST portal doesn’t stop the taxpayers from filing the application in case wherever the payment details and demand amount are not matching. It is advised to upload the relevant payment information as attachments.

(Link: GSTN Advisory Dated 12/06/2025)

AAR, Liquidated damages & forfeited deposits for MSETCL not ‘Supply’ under GST: Case of Maharashtra State Electricity Transmission Co Ltd (MSETCL), AAR Maharashtra Ruling Dated 28th April 2025. AAR ruled that following is not supply under GST.

• Liquidated Damages (LD)/Penalty recovered from contractors/suppliers for breach of contract.
• Liquidated Damages (LD)/Penalty recovered from contractors/suppliers on Deposit Works/ Outright Contribution Works (ORC).
• Forfeiture of Security Deposit or Earnest Money Deposit in care of refusal to accept the work order despite of being Lowest one (L1) or failure of performance by the supplier or contractor.

–       Old and unclaimed Creditors balance written back to income A/c after Three (03) Years from the date of completion of the contract.

–       Write back of Old and unclaimed Earnest Money Deposit (EMD) / Security Deposit (SD) to income A/c after Three (03) Years from the date of the completion of the guarantee period as per contract.

–      Penalty or charges applied for violation of conditions of contract.

Shot Blasting on customer castings classified as Job Work, attracting 12% GST: Case of Amruta Fettlers, AAR Maharashtra Ruling Dated 28^th April 2025. The shot blasting activity carried out by the applicant on the castings of his customer within his premises by using his own shot blasting machine/steel shots as well as labourers is classifiable as job work service falling under SAC 9988.  The said activity will attract 12% GST in terms of clause (id) of serial number 26 of notification No.11/2017 dated 28^th June 2017.

AAR, Gantrex’s service for ISRO is Pure Service, not Works Contract, attracts 18% GST: Case of Gantrex India Crane Ralls Private Ltd, AAR Maharashtra Ruling Dated 28th April 2025. The provision of testing and commissioning service of Rail Track is classifiable under Heading 9954 and more specifically under Sr.No.3(xii) of notification  number 11/2017 dated 28^th June 2017 and the rate of tax will be 18%.

AAR, Infantometer taxable at 12% GST, Stadiometer taxable at 18% GST: Case of Nitiraj Engineers Limited,  AAR Maharashtra Ruling Dated 28th April 2025. The Infantometer, being a diagnostic medical equipment, is covered under Tariff Heading 9018 and liable to GST at rate 12%. The would be correctly classified under tariff Heading 9017 and liable to GST at rate 18%.

AAR, Fruit protection bags classified under 48194000, attract 18% GST: Case of KR Innovation, AAR Maharashtra Ruling Dated 28^th April 2025. The product i.e. Fruit Protection bags, made out of kraft paper would be classifiable under 48194000. It shall be the taxable at rate 18%.

AAR, Baby car seats classified as ‘Other Seats’, not vehicle accessories: Case of Artsana India Private Limited, AAR Maharashtra Ruling Dated 28th April 2025. The product namely baby car seat is classified under 94018000. The said goods are classified under 94018000 and therefore, the notification number 5/2024 dated 8^th October 2024 would not be applicable to the subject goods.

AAR, Interest on deferred payments in Road Projects taxable under GST: Case of Shenwa Infrastructure Private Limited, AAR Maharashtra Ruling Dated 28th April 2025. The interest receivable on deferred payment in Equated Yearly Instalment as per tender terms under Annuity Model is liable for payment of GST. The service is classified same as that of original taxable supply of ‘services of construction of road and maintenance’ and applicable rate of GST shall be the same as that of original taxable supply.

AAR denied GST exemption for PMAY sub-contracted labour: Case of Build Layer Constructions, AAR Rajasthan Ruling Dated 23rd May 2025. The applicant has entered into agreement to provide pure labour construction services to M/s BCM Builder, who has entered into contract with Rajasthan Govt to construst 380 flats under Affordable Housing Scheme under PMAY. As per agreement, it is noted that applicant is under obligation to provide machine and other materials, thus not a pure labour contract. The labour services provided by applicant fall under HSN 9954 attracting GST rate of 18%.

AAR, GST rule 86B exemption denied as neither Firm nor Individual Partners paid Rs 1 Lakh Income Tax: Case of Aadinath Agro Industries, AAR Rajasthan Ruling Dated 23rd May 2025. The total income tax paid by the firm and its partners can not be considered for exemption under CGST Rule 86B.

C. Central Excise

No Notifications/ Circular during the week.

D. Custom Duty

CBIC Appoints Common Adjudicating Authority for Bando (India): The notification appoints a common adjudicating authority for specific show cause notices involving M/s Bando (India) Pvt Ltd. For these cases, the Commissioner of Customs, Chennai II, Import, has been appointed as the common adjudicating authority.

(Link: Custom Notification 41/2025 (NT) Dated 11/06/2025)

Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 12^th June 2025. The tariff value for crude palm oil is set at USD 965 per metric ton, while gold and silver have tariff values of USD 1067 per 10 grams and USD 1189 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 6970 per metric ton.

(Link: Custom Notification 42/2025 (NT) Dated 11/06/2025)

Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 14^th June 2025. The tariff value for crude palm oil is set at USD 981 per metric ton, while gold and silver have tariff values of USD 1092 per 10 grams and USD 1171 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 6970 per metric ton.

(Link: Custom Notification 43/2025 (NT) Dated 13/06/2025)

Applicability of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies)- Consolidated Repository: It highlights that DGFT regularly provides clarifications regarding SCOMET applicability on various goods through Office Memoranda. CBIC has compiled a consolidated repository of these DGFT clarifications. This repository is now accessible on the CBIC website at a specified link. However, it emphasizes that these clarifications are solely for reference purposes. It is crucial for each item to be individually assessed for SCOMET coverage based on its specific characteristics, intended use, and other relevant specifications.

(Link: Custom Instructions 15/2025 (NT) Dated 12/06/2025)

E. Directorate General of Foreign Trade (DGFT)

Fixation of one new Standard Input Output Norms (SIONs) for export of Sodium Citrate: It introduces new SION A-3686 under the ‘Chemical and Allied Product’ group (Product Code ‘A’), for the export product “Sodium Citrate.” As per the newly fixed norms, for every 1 kg of Sodium Citrate exported, up to 0.740 kg of Citric Acid Monohydrate is allowed to be imported duty free.

(Link: DGFT Public Notice 09/2025 Dated 10/06/2025)

Sports Goods Export Promotion Council renamed for issuing Non-Preferential Certificates: It amends Appendix 2E of the Foreign Trade Policy (FTP). ‘The Sports Goods Export Promotion Council’ has been renamed to ‘Sports Goods & Toys Export Promotion Council’. This pertains its role for issuing Non-Preferential Certificates of Origin.

(Link:DGFT Public Notice 10/2025 Dated 12/06/2025)

Sports Goods Export Promotion Council’ renamed for issuance of RCMC: It amends Appendix 2T of the Foreign Trade Policy (FTP). ‘The Sports Goods Export Promotion Council’ has been renamed to ‘Sports Goods & Toys Export Promotion Council’. This pertains to its role in issuing Registration-cum-Membership Certificates (RCMC) for specified export items.

(Link:DGFT Public Notice 11/2025 Dated 12/06/2025)

Rollout of ‘Source from India’ on Trade Connect ePlatform for all Status Holders: It informs all exporters, trade associations, and stakeholders that the ‘Source from India’ micro-page hosting service, initially piloted with Three, Four, and Five star Manufacturer exporters, is now available to all Status Holder exporters holding valid Importer Exporter Codes (IECs) that are not on the Denied Entities List (DEL). Exporters can create individual micro-pages to detail their products and entity credentials, which become publicly visible on the ‘Source from India’ page upon approval.

(Link: DGFT Trade Notice 05/2025 Dated 13/06/2025)

F. Securities and Exchange Board of India (SEBI)

Adoption of Standardised, Validated and Exclusive UPI IDs for payment collection by SEBI Registered Intermediaries from Investors: SEBI has mandated a structured Unified Payment Interface (UPI) address mechanism for its registered investor-intermediaries. While investors retain the option to use this new UPI mechanism, it is compulsory for all SEBI-registered intermediaries to obtain and offer these standardized UPI IDs. The core of this new framework is a dedicated UPI address structure.

(Link: SEBI Circular Dated 11/06/2025)

Review of provisions relating to Commodity Derivatives Product Advisory Committee (PAC): It revises the provisions concerning the Product Advisory Committee (PAC), which stock exchanges are mandated to constitute for various commodity groups. It state that while PACs for non- agricultural commodities shall continue to meet at least twice a year, PACs for agricultural commodities are now required to meet at least once a year.

(Link: SEBI Circular Dated 12/06/2025)

Investor Charter for Real Estate Investment Trusts (REITs): SEBI has introduced an Investor Charter for REITs, with aim to bolster financial consumer protection, inclusion, and literacy, aligning with recent market developments such as the Online Dispute Resolution (ODR) platform and SCORES 2.0. It outlines the vision, mission, activities, services, investor rights, and responsibilities concerning REITs.

(Link: SEBI Circular Dated 12/06/2025)

Investor Charter for Infrastructure Investment Trusts (InvITs): SEBI introduced an Investor Charter for InvITs, building upon earlier regulations. It outlines the vision and mission of the InvIT Investor Charter, detailing activities, services for unitholders, and timelines for various financial transactions, complaint resolutions, and periodic disclosures like financial reports, valuation reports, and unitholding patterns. In order to ensure transparency in grievance redressal, all registered InvITs must now disclose data on complaints, on their respective websites by the 7th of the succeeding month.

(Link: SEBI Circular Dated 12/06/2025)

Draft Circular on Frequently Asked Questions (FAQs) related to regulatory provisions for Research Analysts: It addresses various aspects of RA regulation, including registration requirements, qualifications, trading limitations, disclosures, and compliance obligations. The key proposed changes include mandatory NISM certification for persons associated with research services within one year. It also clarifies that while an RA can distribute certain products, client-level segregation of research and distribution activities remains crucial for products where research services are also provided. The comments/ suggestions are invited from stakeholders.

(Link: SEBI Consultation Paper Dated 09/06/2025)

SEBI to Introduce ‘Validated UPI Handles’ and ‘SEBI Check’ for secured payments by investors: The initiative introduces “Validated UPI Handles” for SEBI-registered intermediaries, featuring a mandatory ‘@valid’ handle and a visual “Thumbs-Up inside a green triangle” icon for easy identification of legitimate transactions. Intermediaries will also be required to generate QR codes with this logo. Also, SEBI is developing a ‘SEBI Check’ tool, enabling investors to verify UPI IDs and bank details of registered intermediaries.

(Link: SEBI Press Release Dated 11/06/2025)

G. Ministry of Corporate Affairs (MCA)

MCA Amends XBRL Filing Rules from 14^th July 2025: MCA has amended Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules. As per the amended provisions, companies that file their financial statements in XBRL format, are now required to additionally attach a signed copy of the financial statements in PDF format. This attachment must include the Board’s Report, Auditor’s Report, and any other related documents duly authenticated in accordance with Section 134 of the Companies Act, 2013. Also, changes have also been made to Annexure-I, which relates to the format of e-Form AOC-4 XBRL.

(Link: MCA Notification Dated 06/06/2025)

H. Insolvency and Bankruptcy Board of India (IBBI)

NCLAT, Resolution plan rejection on valuation grounds unjustified without stakeholder objection: Case of Vashisth Builders and Engineers vs Trishul Dream Homes, NCLAT Delhi Judgement Dated 20th May 2025.The appellant authority held that rejection of resolution plan on the ground of valuation of assets of Corporate Debtor not sustainable since no objection to the valuation conducted of the Corporate Debtor was raised by any stakeholders.

NCLAT, Majority consent on restructuring doesn’t bar IBC section 7 filing by lender: Case of Apresh Garg vs Indian Bank, NCLAT Delhi Judgement Dated 15th May 2025. The appellant authority held that filing of application by lender under section 7 of the IBC even after agreeing on restructuring of loan by majority of lenders is justifiable since all Lenders have their independent rights to take such measures as per their Bank’s policy. Accordingly, order admitting application under section 7 is upheld.

NCLAT, State Tax Department is secured creditor under section 53 of IBC: Case of  State Tax Officer vs Premmraj Ramratan Laddha, NCLAT Judgement Dated 16th May 2025. The appellate tribunnal held that State Tax Department is secured creditor under section 53 of the Insolvency and Bankruptcy Code [IBC] hence resolution plan approved without considering the same is in violation of statutory provision.

IBBI suspends Mr Arvind Kumar, IP over non-cooperation and contraventions in CIRP:  The Disciplinary Committee concluded his contraventions regarding admission of excessive amount of claims, delegating authority to suspended director without CoC prior approval, and non-cooperation with investigating authority, and suspended him for a period of two years.

(Link: IBBI Order Dated 11/06/2025)

I. Reserve Bank of India (RBI)

Large Exposures Framework (LEF)- Amendment in the list of exempted exposures: Previously, the LEF circular exempted “deposits maintained with NABARD on account of shortfall in achievement of targets for priority sector lending” from being considered for exposure limits. The new amendment extends this exemption to include contributions made by scheduled commercial banks to funds with NHB (National Housing Bank), SIDBI (Small Industries Development Bank of India), MUDRA Ltd., or any other entity specified by the RBI, when these contributions are made due to a shortfall in meeting priority sector lending targets.

(Link: RBI Notification 48/2025 Dated 09/06/2025)

Non-achievement of PSL targets- Prudential treatment of contribution towards eligible funds with NABARD, NHB, SIDBI and MUDRA: It relates to Primary (Urban) Co- operative Banks (excluding Salary Earners’ Banks) regarding their contributions to eligible funds due to shortfalls in Priority Sector Lending (PSL) targets. The contributions to entities like NABARD, NHB, SIDBI, and MUDRA Ltd will no longer be counted when calculating a UCB’s aggregate exposure to these counterparties. It means that these contributions will not impact the prudential exposure limits, which are set at 15% of Tier-I capital for a single borrower and 25% for a group of connected borrowers.

(Link: RBI Notification 49/2025 Dated 09/06/2025)

Basel III Capital Regulations- External Credit Assessment Institution (ECAI): Upon review, the RBI has decided to remove the restrictions and limits on the use of Brickwork Ratings India Private Limited (BRIPL) ratings. All other provisions related to external credit ratings, as stipulated in the Master Circular on Basel III Capital Regulations, remain unchanged.

(Link: RBI Notification 50/2025 Dated 09/06/2025)

RBI (Know Your Customer (KYC)) Directions: For low-risk individual customers, the deadline for KYC updation has been extended, they are now permitted to complete this within one year of its due date or by 30^th June 2026, whichever is later, though their accounts will remain under regular monitoring. RBI has authorized banks to utilize their Business Correspondents (BCs) for the periodic updation of KYC. Also, all Regulated Entities (REs) are now mandated to issue at least three advance intimations (including one by letter) to customers before their KYC is due for updation, and three reminders (including one by letter) if non-compliant after the due date.

(Link: RBI Notification 51/2025 Dated 12/06/2025)

Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions: It clarifies and updates the procedures for managing funds that have remained unoperated or unclaimed for ten years or more, which are ultimately transferred to the Depositor Education and Awareness (DEA) Fund. Banks are now required to offer KYC updation services at all branches, including non- home branches. Also, banks are encouraged to utilize the Video-Customer Identification Process (V-CIP) for KYC updates. The banks are also to use their authorized Business Correspondents to facilitate the activation of these inoperative accounts and unclaimed deposits.

(Link: RBI Notification 52/2025 Dated 12/06/2025)

Updation/ Periodic Updation of KYC– Revised Instructions: The instructions are aimed at simplifying and expediting the process of Know Your Customer (KYC) updation, particularly in accounts linked to government benefit transfers and the Pradhan Mantri Jan-Dhan Yojana (PMJDY). The key amendments, now permit Business Correspondents (BCs) to assist in the KYC updation process. It outlines simplified procedures for both initial customer onboarding, including Aadhaar biometric e-KYC, Digital KYC, Video-based Customer Identification Process (V-CIP), and subsequent periodic updates, allowing self-declarations for minor changes and leveraging digital channels.

(Link: RBI Notification 53/2025 Dated 12/06/2025)

Stripping/Reconstitution in State Government Securities: RBI has introduced a facility for the Separate Trading of Registered Interest and Principal of Securities (STRIPS) for State Government Securities (SGS). Eligible SGS for stripping or reconstitution must have a residual maturity of up to 14 years, a minimum outstanding value of ₹1,000 crore as of the stripping date, be eligible for Statutory Liquidity Ratio (SLR) requirements, and be transferable. Market participants holding SGL accounts with the RBI can submit requests directly through the e-Kuber system, while Gilt Account Holders will process requests via their custodians.

(Link: RBI Notification 54/2025 Dated 12/06/2025)

Import of Shipping Vessel- Relaxation: It permits Authorised Dealer Category-I banks to allow importers to make advance remittances for shipping vessel imports. The key change is that these remittances, up to a limit of USD 50 million, can now be made without requiring a bank guarantee or an unconditional, irrevocable standby Letter of Credit.

(Link: RBI Notification 55/2025 Dated 13/06/2025)

J. Miscellaneous

SC, Unregistered sale agreement can’t confer title via subsequent registration: Case of Mahnoor Fatima Imran vs Visweswara Infrastructure Pvt Ltd, SC Judgement Dated 7th may 2025. The apex court held that If Original Sale Agreement Is Unregistered, Registration of Subsequent Instrument Won’t Confer Title.  It held that the registration of a document gives notice to the world about its execution but does not confer an unimpeachable validity.

SC, Plea to treat Heart as ‘Plant’ for tax deduction rejected by SC as Infructuous: Case of Shanti Bhushan vs CIT, SC Judgement Dated 8th May 2025. A prolonged legal battle initiated by eminent late lawyer Shanti Bhushan, who sought to claim the expenses for his coronary bypass surgery as a tax deductible business expenditure, concluded in the apex court after his demise. His legal heirs communicated their decision not to pursue the litigation further, leading the apex court to declare the appeal as having become infructuous.

*****

“Compiled by CMA Yash Paul Bhola, MBA, FCMA, former Director (Finance), National Fertilizers Limited.

Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)