The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued a fresh notification [G.S.R. 553(E)] to amend the Income-tax Rules, 1962. The changes, notified on August 14, 2025, will come into effect from September 1, 2025.
According to the notification, the Income-tax (Twenty-First Amendment) Rules, 2025 introduce a modification in Form No. 7 under Appendix-II of the Income-tax Rules. The amendment replaces the earlier wording "assessment year…….a sum" with the updated phrase "assessment year……… or the block period………., as the case may be, a sum."
This change aligns Form No. 7 with provisions under the Income-tax Act, 1961, ensuring clarity in cases where assessments are made not just for a single assessment year but also for a block period, as applicable.
The Income-tax Rules, 1962, originally published in the Gazette of India on March 26, 1962, have undergone several amendments over time, with the most recent amendment prior to this being G.S.R. 503(E) dated July 28, 2025.
Key Highlights of the Notification:
- Rule Name: Income-tax (Twenty-First Amendment) Rules, 2025
- Effective Date: September 1, 2025
- Change Made: Substitution in Form No. 7, Appendix-II
- Purpose: To incorporate the term "block period" alongside "assessment year" for wider applicability.
Tax experts believe this update will streamline compliance for taxpayers and tax authorities, especially in cases involving block assessments.
Official copy of the notification has been attached
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