Executive Summary
Income Tax
- Section 37(1)- Enforcement of Section 152 And 153.
- Section 139- Extension of Due Date to file Return of Income to 15th September, 2025.
- Income Tax Amendments Rules- Substitution of ITR Forms.
Goods And Services Tax (GST)
- Grievance redressal mechanism for processing of application for GST registration, Instruction no. 4/2025 – GST [F.No. CBIC – 20016/24/2025 – GST], dated 02-05-2025
- Timely production of records/information for audit Instruction no. 5/2025 – GST [F. No. Ccb-20015/2/2025 – GST], dated 02-05-2025
Companies Act 2013/ Other Laws
- MCA issued Companies (Indian Accounting Standards) Amendment Rules, 2025
- MCA issued Companies (Cost Records and Audit) Amendment Rules, 2025
- Ministry of Corporate Affairs amends Annual Filing Forms MGT-7, MGT-7A, and MGT-15
- Insolvency and Bankruptcy Board of India amends The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
- Reporting on Firms Portal – Issuance of Partly Paid Units by Investment Vehicles
- Process for appointment, Re-appointment, termination, or acceptance of resignation of specific Key Management
- Personnel (KMPs) of a Market Infrastructure Institution (MII) – Cooling-Off Period for KMPs of an MII joining a Competing MII – Provision relating to re-appointment of Public Interest Directors (PIDs)
A. Section 37(1) of the Income Tax Act, 1961- Enforcement of Section 152 and 153, Dated 06-05-2025
In exercise of the powers conferred by section 151 of the Finance Act, 2017 (7 of 2017), the Central Government hereby appoints the 9th day of May, 2025 as the date on which sections 152 and 153 of the said Act, relating to amendments in the Payment and Settlement Systems Act, 2007 (51 of 2007), shall come into force.
B. Section 139 of the Income Tax Act, 1961 – Extension of Due Date for furnishing Return of Income for A.Y. 2026-27, Dated 27-05-2025
The Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Income-tax Act, 1961 (‘the Act\ extends the due date of furnishing of Return of Income under sub-section (1) of section 139 of the Act for the Assessment Year 2025-26 in the case of assessees referred in clause (c) of Explanation 2 to sub-section (1) of section 139 of the Act, which is 31st July, 2025 to 15th September, 2025.
C. Income Tax Amendment Rules, 2025 – Substitution of ITR Forms
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:
- Income-Tax Twelfth Amendment Rules, 2025- Substitution of Forms- ITR 1 and ITR 4
- Income-Tax Thirteenth Amendment Rules, 2025- Substitution of Forms- ITR 3
- Income-Tax Fourteenth Amendment Rules, 2025- Substitution of Forms- ITR 5
- Income-Tax Fifteenth Amendment Rules, 2025- Substitution of Forms- ITR 2
- Income-Tax Sixteenth Amendment Rules, 2025- Substitution of Forms- ITR 6
- Income-Tax Seventeenth Amendment Rules, 2025- Substitution of Forms- ITR V
- Income-Tax Eighteenth Amendment Rules, 2025- Substitution of Forms- ITR 7
- Income-Tax Nineteenth Amendment Rules, 2025- Substitution of Forms- ITR U
A. Grievance redressal mechanism for processing of application for GST registration, Instruction no. 4/2025 – GST [F.No. CBIC – 20016/24/2025 – GST], dated 02-05-2025
Grievance Redressal for GST Registration – Central Jurisdiction
As per CBIC Instruction No. 3/2025 dated 17.04.2025:
- Applicants under Central Jurisdiction facing issues with queries or rejection of GST registration can contact the Zonal Principal Chief Commissioner/Chief Commissioner.
- For faster grievance redressal:
- Zones must share a dedicated email ID for grievance submission.
- Applicants should email ARN, jurisdiction (Centre/State), and the issue briefly.
- If it concerns State jurisdiction, it will be forwarded to the State authority and the GST Council Secretariat.
- Chief Commissioners must:
- Ensure timely resolution and inform applicants.
- Advise applicants if queries are valid.
- Send a monthly report to DGGST for Board review.
- Any implementation issues should be reported to the Board.
B. Timely production of records/information for audit Instruction no. 5/2025 – GST [F. No. CCB-20015/2/2025 – GST], dated 02-05-2025
Submission of Records to the Comptroller and Auditor General of India, Audit Teams
- Report 7 of 2024 flagged non/partial sharing of records with audit teams.
- As per Article 149, the Comptroller and Auditor General of India has the authority to audit the government. accounts and entities.
- Field officers must provide all required records/information to the Comptroller and Auditor General of India’s audit teams without delay.
- If records are with the taxpayer, send them a request letter and follow up to ensure timely submission. These issues are with the approval of the Chairman, CBIC.
A. MCA Issued Companies (Indian Accounting Standards) Amendment Rules, 2025
The Ministry of Corporate Affairs (MCA) issued a notification on May 7, 2025, enacting the Companies (Indian Accounting Standards) Amendment Rules, 2025. These rules amend the Companies (Indian Accounting Standards) Rules, 2015, primarily focusing on Indian Accounting Standard (Ind AS) 21, which deals with the effects of changes in foreign exchange rates. The amendments introduce detailed guidance on assessing whether a currency is exchangeable into another currency, estimating the spot exchange rate when a currency is not exchangeable, and the required disclosures in such circumstances. Definitions and application guidance are added to clarify terms and processes related to exchangeability for different purposes, such as reporting foreign currency transactions or translating foreign operations. Corresponding amendments are also made to Ind AS 101 regarding first-time adoption of Ind AS in the context of severe hyperinflation and non-exchangeable currencies. These amendments are applicable for annual reporting periods beginning on or after April 1, 2025, with specific transitional provisions outlined.
Effective April 1, 2025, companies delaying payments to Micro and Small Enterprises (MSEs) beyond 45 days will face.
B. MCA issued Companies (Cost Records and Audit) Amendment Rules, 2025.
The Ministry of Corporate Affairs (MCA) has issued a new notification, G.S.R. 361(E), bringing important changes to how companies manage and report their cost audits. These changes are part of the Companies (Cost Records and Audit) Amendment Rules, 2025, and will come into effect from July 14, 2025. The focus of this amendment is to replace and modernize two key forms used by companies: Form CRA-2 and Form CRA-4. These forms are used to appoint cost auditors and to file cost audit reports with the Central Government.
C. Ministry of Corporate Affairs amends Annual Filing Forms MGT-7, MGT-7A, And MGT-15
The Ministry of Corporate Affairs (MCA) has recently released an official notification dated 30th May, 2025, regarding some rules further added to amend the Companies (Management and Administration) Rules, 2014, by the Central Government of India, in exercise of its powers granted under sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), specifically:
- These amended rules may now be called the Companies (Management and Administration) Amendment Rules, 2025.
- These amendments will be made effective from the 14th day of July, 2025.
- In the Companies (Management and Administration) Rules, 2014, the forms MGT-7, MGT-7A, and MGT-15 are being replaced with new e-forms.
- Insolvency and Bankruptcy Board of India amends The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
The Insolvency and Bankruptcy Board of India (IBBI/Board) has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2025 (Amendment Regulations) on 26th May, 2025. The amendments, which come into immediate effect, aim to further streamline and strengthen the corporate insolvency resolution process.
Key highlights of the Amendment Regulations are as follows:—
| (i) | Facilitating part-wise resolution of Corporate Debtor: The resolution professional, with the approval of the CoC, can invite expression of interest for submission of resolution plans for the corporate debtor as a whole, or sale of one or more of the assets of the corporate debtor, or for both. By enabling concurrent invitations, the resolution process can reduce timelines, prevent value erosion in viable segments, and encourage broader investor participation. | |
| (ii) | Harmonizing timelines for payment under the resolution plan: Where a resolution plan provides for payment in stages, the financial creditors who did not vote in favour of the resolution plan shall be paid at least pro rata and in priority over financial creditors who voted in favour of the plan, in each stage. This approach balances the legitimate rights of dissenting creditors with the practical constraints of phased implementations. | |
| (iii) | Facilitating the providers of interim finance: CoC has been empowered to direct the resolution professional to invite the providers of interim finance to attend CoC meetings as observers without voting rights. This measure is intended to provide interim finance providers with a better understanding of the corporate debtor’s operational status, thereby enabling them to make well-informed decisions regarding funding requirements. | |
| (iv) | Presentation of all plans before the Committee of Creditors (CoC): Resolution professionals are now required to present all resolution plans received, including those that are non-compliant, to the CoC along with relevant details. This provision ensures that the CoC has access to comprehensive information for decision-making, which may lead to more informed choices and ultimately contribute to a more transparent and effective resolution process. |
FEMA
- Reporting on Firms Portal – Issuance of Partly Paid Units by Investment Vehicles
Investment vehicles issuing partly paid units to non-residents must report these transactions on the FIRMS (Foreign Investment Reporting and Management System) portal using Form InVI. A special one-time window allows for reporting within 180 days from the date of the circular for issuances before May 23, 2025, without late submission fees. Issuances made on or after May 23, 2025, must be reported within 30 days, as per existing regulations.
A. Process for appointment, Re-appointment, termination, or acceptance of resignation of specific Key Management Personnel (KMPs) of a Market Infrastructure Institution (MII) – Cooling-Off Period For KMPs of an MII joining a Competing MII – Provision relating to re-appointment of Public Interest Directors (PIDs)
Market Infrastructure Institutions (MIIs) such as stock exchanges, clearing corporations, and depositories. Here’s an overview of the key provisions concerning the appointment, reappointment, termination, and cooling-off periods for Key Management Personnel (KMPs) and Public Interest Directors (PIDs
- Appointment, Reappointment, and Termination of Specific KMPs
SEBI has mandated that the appointment, reappointment, or termination of specific KMPs—including the Compliance Officer (CO), Chief Risk Officer (CRO), Chief Technology Officer (CTO), and Chief Information Security Officer (CISO)—must receive approval from the Governing Board of the MII. Previously, these decisions were within the purview of the Nomination and Remuneration Committee (NRC) of the MII.
- Cooling-Off Period for KMPs and Directors Joining Competing MIIs
The Governing Board of an MII may prescribe a minimum cooling-off period for its KMPs and Directors—including the Managing Director (MD) and PIDs—before they can join a competing MII. However, SEBI will no longer prescribe a mandatory cooling-off period for PIDs transitioning from one MII to another.
- Reappointment of Public Interest Directors (PIDs)
The existing process for the appointment of PIDs, which requires prior approval from SEBI but does not mandate shareholder approval, will continue. If the Governing Board of an MII decides not to reappoint an existing PID after their first term, it must record the rationale for this decision and communicate it to SEBI.
Disclaimer Information in this note is intended to provide only a general update of the subjects covered. It is not intended to be a substitute for detailed research or the exercise of professional judgment. KNM accepts no responsibility for loss arising from any action taken or not taken by anyone using this publication. Updates for the period 31.05.2025
