The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has released a corrigendum to its earlier notification G.S.R. 290(E) dated May 6, 2025, introducing key amendments related to income tax return forms and deductions under Section 80-IE of the Income Tax Act, 1961.
According to the corrigendum (G.S.R. 356(E)) published in the Gazette of India, two important changes have been made:
Correction in Schedule CG: On page 154 of the earlier notification, in Schedule CG, the reference "(4ca -biva)" has been corrected to "(4a-biva)". This correction ensures consistency in the computation of capital gains, particularly in relation to the specific clause and sub-items listed in the schedule.
Update to Schedule 80-IE - Inclusion of Sikkim: A new row item "ah" has been inserted after item "ag" in Schedule 80IE. This amendment officially includes Sikkim among the North-Eastern states eligible for tax deductions under Section 80-IE. The updated schedule now allows for tax deduction entries for:
- Undertaking No. 1 and No. 2 located in Sikkim (reflected as ah1 and ah2), as per Form 10CCB.
- The total deductions for undertakings in the North-East now aggregate from Assam to Sikkim (aa1 to ah2), giving a comprehensive view under item "ai".
Section 80-IE: Promoting Industrial Development in the North-East
Section 80-IE of the Income Tax Act provides for a 100% tax deduction to eligible undertakings in specified North-Eastern states for a period of 10 consecutive assessment years. This incentive is aimed at encouraging industrial growth and economic development in these strategically important but often underserved regions.
With Sikkim now explicitly added to the deduction schedule, eligible businesses operating in the state will be able to claim tax benefits under this section, effective immediately.
Implication for Taxpayers and Practitioners
Taxpayers filing their Income Tax Returns (ITR) for Assessment Year 2025-26 should take note of these amendments. Chartered Accountants, tax professionals, and software providers must update ITR utilities and ensure the accurate application of the corrected clauses and revised deduction fields.
Official copy of the notification has been attached
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