The Central Board of Direct Taxes issued Notification No. 42/2025 on May 1, 2025, which introduces the Income-tax (Fourteenth Amendment) Rules, 2025. These rules, effective from April 1, 2025, further amend the Income-tax Rules, 1962. The notification specifically states that in Appendix-II of the existing rules, FORM ITR-5 will be replaced with a new form. This change is made in exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961. The amendment pertains to the form used for filing income tax returns by certain entities as specified in ITR-5.
Key updates:
- Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024)
- Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024)
- Reference of sec 44BBC (cruise biz) added
- TDS section code to be reported in Schedule-TDS
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 42/2025 – Income Tax | Dated: 1st May, 2025
G.S.R 286(E).—In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Fourteenth Amendment) Rules, 2025.
(2) They shall come into force with effect from the 1st day of April, 2025.
2. In the Income-tax Rules, 1962, in Appendix-II, for FORM ITR-5, the following FORM shall be substituted, namely: —
[F. No. 370142/17/2025-TPL]
SURBENDU THAKUR, Under Secy., Tax Policy and Legislation
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section(ii) vide number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification GSR 279(E), dated the 30th April, 2025.
Explanatory Memorandum- It is hereby certified that no person shall be adversely affected by giving retrospective effect to these rules.
