The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued a notification introducing the Income-tax (Twenty-Third Amendment) Rules, 2025, bringing significant changes to reporting requirements under Section 80LA of the Income-tax Act, 1961.
According to Notification No. 135/2025, published in the Official Gazette on August 20, 2025, amendments have been made to Form No. 10CCF (Annexure A) of the Income-tax Rules, 1962. These revisions specifically address the computation and reporting of income for International Financial Services Centre (IFSC) Insurance Offices undertaking insurance business.
Key Highlights of the Amendment
Clarification on Gross Income
- For IFSC Insurance Offices, the term "gross income" will now mean profits and gains calculated under the provisions of Section 44 and the First Schedule of the Income-tax Act.
Reporting of Eligible Income
- In cases where IFSC Insurance Offices compute profits under Section 44 and the First Schedule, the field relating to "gross eligible income" in Form 10CCF may be submitted as Nil.
The changes are aimed at aligning tax compliance requirements for IFSC-based insurance businesses with the specific provisions applicable to the insurance sector, thereby ensuring clarity in reporting and reducing compliance ambiguities.
The notification comes as part of CBDT's broader effort to streamline income-tax rules in line with evolving financial services and to support India's growing IFSC ecosystem, especially in Gujarat International Finance Tec-City (GIFT City).
The amended rules come into immediate effect from the date of their publication in the Official Gazette.
Official copy of the notification has been attached
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