Executive Summary
Income Tax
- Government notifies revised INDIA-QATAR DTAA
- CBDI authorizes ‘CPC Bengaluru’ to rectify mistakes and issue notice of demand u/s 156 of the Income-Tax Act, 1961
- CBDT extends due date for furnishing return of income for AY 2025-26 under the Income-Tax Act, 1961
Goods And Service Tax (GST)
- Instruction no. 06/2025 – GST [F. No. CBIC – 20006/4/2025 – GST], Section 54 of the Central Goods and Services Tax Act, 2017 – Refund of tax – provisional sanction of refund claims because of identification and evaluation of risk by the system, dated 03-10-2025
- Press release, CBIC introduces system-based auto-approval for IFSC code registration to enhance ease of doing business, dated 07-10-2025
Companies Act 2013/ Other Laws
- MCA Amends IEPF Refund Rules for Unclaimed Securities
- MCA extended the deadline for filing the directors’ KYC forms
- MCA extends last date for filing Financial Statements and Annual Return
- SEBI Rationalizes RPT Disclosure for Listed Entities
- Draft Regulations on Establishment of Branch/Office in India by Overseas Entities
- IBBI (Liquidation Process) (Second Amendment) Regulations, 2025
A. GOVERNMENT NOTIFIES REVISED INDIA-QATAR DTAA [24-10-2025]
- The Government of the Republic of India and the Government of the State of Qatar, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation between the two countries. The Agreement and Protocol between the Republic of India and the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, was signed at New Delhi on the 18th day of February, 2025. And whereas, the said Agreement and Protocol entered into force on the 10th day of September, 2025 in accordance with paragraph 2 of Article 30 of the said Agreement and Protocol.
B. CBDT AUTHORIZES ‘CPC BENGALURU’ TO RECTIFY MISTAKES AND ISSSUE NOTICE OF DEMAND U/S 156 OF THE INCOME-TAX ACT, 1961 [27-10-2025]
- In exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby directs that the Commissioner of Income-tax, shall exercise the concurrent powers –(a) to rectify u/s 154 of the IT Act 1961, the mistakes which are apparent from records including any refund issued earlier under the provisions of the Act and/or non-consideration of any pre-paid tax credit and/or non-consideration of any relief eligible and/or calculation of interest u/s 244A of the IT Act 1961, in passing any order under the Income-tax Act resulting in error in computation of the tax and/or refund determined and/or demand;(b) to issue notice of demand under section 156 of the Income-tax Act, 1961 in such cases covered under (a) above.
C. CBDT EXTENDS DUE DATE FOR FURNISHING RETURN OF INCOME FOR AY 2025-26 UNDER THE INCOME-TAX ACT, 1961 [29-10-2025]
- The CBDT has decided to extend the due date of furnishing of return of income u/s 139 of the Act for AY 2025-26, which is October 31, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-section (1) of Section 139 of the Act, to December 10, 2025.The ‘specified date’ of furnishing of the report of audit under the provisions of the Income Tax Act, 1961 for Previous Year 2024-25 (AY 2025-26), originally due on September 30, 2025 was extended to October 31, 2025. The CBDT has decided to further extend the said ‘specified date’ from October 31, 2025 to November 10, 2025.
A. INSTRUCTION NO. 06/2025 – GST [F. NO. CBIC – 20006/4/2025 – GST], SECTION 54 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 – REFUND OF TAX – PROVISIONAL SANCTION OF REFUND CLAIMS BECAUSE OF IDENTIFICATION AND EVALUATION OF RISK BY THE SYSTEM, DATED 03-10-2025
Summary of Key Instructions on Risk-Based Provisional Refund Processing
The 56th GST Council Meeting (3rd Sept 2025) recommended amendment to Rule 91(2) of the CGST Rules, 2017, allowing 90% provisional refund based on system-generated risk evaluation. The amendment (effective 1st Oct 2025, via Notification No. 13/2025–CT, dated 17-09-2025) introduces a proviso empowering officers to withhold provisional refunds on a case-by-case basis, with recorded reasons.
Notification No. 14/2025–CT (17-09-2025) also specifies categories of taxpayers not eligible for provisional refund for zero-rated supplies under Section 54(6).
Key Guidelines:
- Low-risk applications (as per system score) – 90% refund to be sanctioned provisionally.
- High-risk applications – no provisional refund; detailed scrutiny required.
- Provisional refund denial only in justified cases (e.g., pending appeal, SCN issued, prosecution, or notified category).
- Proper officer may issue SCN (RFD-08) if excess refund is later detected.
- Timelines for issuing RFD-02/RFD-03 must be strictly followed.
Refunds under Inverted Duty Structure (IDS):
Pending formal amendment to Section 54(6), 90% provisional refund may also be sanctioned for IDS claims filed on or after 1-10-2025, following the same risk-based process.
Monitoring:
Jurisdictional Commissioners to ensure implementation and report compliance. Any operational difficulties to be reported to the Board.
B. PRESS RELEASE, CBIC INTRODUCES SYSTEM-BASED AUTO-APPROVAL FOR IFSC CODE REGISTRATION TO ENHANCE EASE OF DOING BUSINESS, DATED 07-10-2025
CBIC Introduces System-Based Auto-Approval for IFSC Code Registration
In a major step toward trade facilitation and ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) has implemented system-based auto-approval for IFSC code registration under the Customs Automated System.
Under the new mechanism, once a particular bank account–IFSC code combination is approved for an Importer Exporter Code (IEC) at one Customs location, the same combination will be auto-approved at other locations—eliminating manual approval by Port officers.
Key Benefits:
- Faster processing of bank account and IFSC code approvals.
- Simplified registration across multiple Customs ports.
- Quicker and seamless credit of export incentives to exporters’ bank accounts.
- Enhanced overall trade efficiency and transparency.
Previously, exporters had to seek approval at each port separately, leading to delays and duplication. This initiative reduces manual intervention and supports CBIC’s ongoing commitment to leveraging technology for simplified, paperless, and efficient Customs operations.
A. MCA AMENDS IEPF REFUND RULES FOR UNCLAIMED SECURITIES
The Ministry of Corporate Affairs (MCA) published amendment rules for the Investor Education and Protection Fund Authority (IEPF) — though not strictly an amendment of the Act itself, this touches companies’ obligations regarding unclaimed dividends, investor protection and transfers to IEPF, and should be treated as a compliance-adjacent update.
B. MCA EXTENDED THE DEADLINE FOR FILING THE DIRECTORS’ KYC FORMS
The MCA extended the deadline for filing directors’ KYC (forms DIR-3 KYC and DIR-3 KYC-WEB) by directors from 15 October to 31 October 2025, giving companies and their company secretaries additional time to ensure all director KYC compliance is in place.
C. MCA EXTENDS LAST DATE FOR FILING FINANCIAL STATEMENTS AND ANNUAL RETURNS
The MCA granted a further extension for the filing of annual returns (for FY 2024-25) by companies, allowing filings without additional late fees until 31 December 2025. This provides operational relief and should prompt companies to update their internal compliance calendars.
D. SEBI RATIONALIZES RPT DISCLOSURE FOR LISTED ENTITIES
On 13 October 2025, SEBI issued a circular on disclosures by listed entities in respect of transactions with related parties. The circular introduces a tiered-disclosure framework: for listed companies, related‐party transactions up to ₹1 crore are exempt from detailed disclosures, whereas larger transactions will still require full disclosures.
E. DRAFT REGULATIONS ON ESTABLISHMENT OF BRANCH/OFFICE IN INDIA BY OVERSEAS ENTITIES
On 3 October 2025, the RBI released the draft Foreign Exchange Management (Establishment in India of a Branch or Office) Regulations, 2025, proposing to replace the existing regulations for branch/liaison/project offices of foreign entities in India. Major proposals include:
- Simplifying the framework: consolidating different categories (Branch, Liaison Office, Project Office) into fewer categories and moving from prescriptive eligibility criteria (net worth, profit track record) to a principle-based approach.
- Delegation of more powers to authorised dealer (AD) banks for approvals, thereby reducing direct regulatory approval burdens.
The draft aims to enhance ease of doing business for overseas entities wanting to establish presence in India, subject to FDI policy compliance.
Implication: For corporates with foreign parent/affiliate entities wanting to set up branches/offices in India, this signals an anticipated easing of formalities—review structures and be prepared for transition once final regulations are notified.
F. IBBI (LIQUIDATION PROCESS) (SECOND AMENDMENT) REGULATIONS, 2025
In October 2025, the IBBI issued two significant sets of amendments that impact the insolvency resolution and liquidation processes under the Insolvency and Bankruptcy Code, 2016 (IBC). On 14 October, it notified the “IBBI (Liquidation Process) (Second Amendment) Regulations, 2025”, which remove the provisions in the Liquidation Process Regulations, 2016 for sale of the corporate debtor as a going‐concern (Regulation 32A and related clauses). On the same date, it also notified the “IBBI (Insolvency Resolution Process for Corporate Persons) (Sixth Amendment) Regulations, 2025”, which amend the CIRP Regulations, 2016, notably omitting Regulation 39C (relating to sale of the corporate debtor as a going concern) and modifying Form H and other related provisions. These changes are effective prospectively and reflect IBBI’s push to streamline insolvency and liquidation procedures, aligning them more closely with the resolution-first mandate of the IBC and limiting the ability to shift into liquidation via going concern sales as a standard path.
MONTHLY COMPLIANCE CALENDAR
- 7th November – Deposit of TDS/TCS for October 2025
- 10th November – Extended due date for Tax audit
- 10th November – GSTR-8/ GSTR-7 for month of October
- 11th November – GSTR-1 for month of October 2025
- 15th November – ESI/PF Contribution for month of October 2025
- 15th November – Quarterly TDS certificate for the quarter ending September 30, 2025
- 20th November – GSTR-3B for month of October 2025
- 29th November – File Form MGT-7/7A for companies and OPCs for FY 2024-25
- 30th November – File Form No. 3CEAA by a constituent entity of an international group for FY 2024-25
- 30th November – Due Date for ITR filing ( TP Cases)
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 30.10.2025
