In April 2025, there were several important updates to India’s income tax rules. The Central Board of Direct Taxes (CBDT) issued many notifications and made changes to the Income-tax Rules, 1962. These covered areas like linking PAN with Aadhaar, new reporting rules, tax benefits for research organizations, exemptions for public bodies, and expanded rules for collecting tax at source (TCS).
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Here’s a complete round-up of all official circulars and notifications released during the month:
Notification No. 25 & 26/2025 | Date: April 3, 2025 Relevant Section: 139AA
Individuals who were allotted a Permanent Account Number (PAN) using only the Aadhaar Enrolment ID prior to October 1, 2024, must link their Aadhaar number to the Income Tax Department’s database by December 31, 2025, or a date as may be specified by CBDT. Failure to comply may lead to PAN becoming inoperative.
This compliance is to be reported to the Principal Director General of Income-tax (Systems) or an authorised person through notified channels.
Notification No. 27/2025 | Date: April 4, 2025 Sections: 80CCA, 194EE
Withdrawals made by individuals from accounts under the National Savings Scheme [as per Section 80CCA(2)(a)] shall not attract tax deduction at source (TDS) under Section 194EE. This move offers relief to small savers and pensioners reliant on long-term savings schemes.
Notification No. 30/2025 | Date: April 7, 2025 Relevant Section: 158BC(a)
CBDT has launched a new form, Form ITR-B, for filing block assessment returns in cases where search and seizure operations were initiated under Sections 132 or 132A on or after September 1, 2024.
Key features:
Section 10(46A) Exemptions:
All four institutions are now exempt from income tax under Section 10(46A) for incomes derived from public service functions, including rentals, grants, user fees, and bank interest, subject to conditions specified by CBDT.
Notification No. 33/2025 | Date: April 17, 2025 Relevant Section: 35(1)(ii)
The KIMS Foundation and Research Centre, Hyderabad (PAN: AABTK7589F) has been notified as a recognized institution for scientific research, eligible for weighted deduction under Section 35(1)(ii) for Assessment Years 2026–27 to 2030–31.
This move incentivizes scientific innovation by offering tax benefits to donors and stakeholders involved in recognized research institutions.
1. Notification No. 31/2025 | Date: April 7, 2025 Relevant Section: 54EC
HUDCO’s bonds issued on or after April 1, 2025, and redeemable after five years are notified as long-term specified assets, eligible for capital gains tax exemption if invested within six months of transfer under Section 54EC. Proceeds must be used for revenue-generating infrastructure.
2. Notification No. 34/2025 | Date: April 17, 2025 Relevant Section: 2(48)
HUDCO’s Ten-Year Zero Coupon Bonds, maturing after 10 years and one month, issued at a significant discount, are notified as zero coupon bonds. Total issue: Rs. 5,000 crores. Usage: Infrastructure projects financed through project revenues, not state subsidies.
1. Notification No. 35/2025 | Date: April 22, 2025
2. Notification No. 36/2025 | Date: April 22, 2025 Relevant Section: 206C
CBDT has introduced Tax Collection at Source (TCS) on luxury and lifestyle items when their transaction value exceeds Rs. 10 lakhs:
Notification No. 32/2025 | Date: April 8, 2025 Relevant Section: 90
CBDT has set April 30, 2025, as the final deadline for filing declarations under the Direct Tax Vivad se Vishwas Scheme, 2024, aimed at resolving outstanding tax disputes by paying reduced or waived penalties and interest.
Notification No. 38/2025 | Date: April 23, 2025 Relevant Section: 37
Expenses incurred for settling penalties, fines, or violations under the following laws are now non-deductible:
Applies from the date of notification, April 23, 2025.
Notification No. 40/2025 | Date: April 29, 2025 Relevant Sections: 112A, 44AD, 44ADA, 44AE
Key changes:
| Notification | Date | Key Change/Subject | Section(s) |
| 25, 26 | Apr 3 | Aadhaar–PAN linkage deadline | 139AA |
| 27 | Apr 4 | No TDS on NSS withdrawals | 80CCA, 194EE |
| 30 | Apr 7 | ITR-B introduced for search/seizure cases | 158BC(a) |
| 28–29, 37, 39 | Apr 7–24 | Tax exemptions to public bodies | 10(46A) |
| 31, 34 | Apr 7, 17 | Capital gains exemption via HUDCO bonds | 54EC, 2(48) |
| 33 | Apr 17 | KIMS Research Centre is approved for scientific research | 35(1)(ii) |
| 32 | Apr 8 | Last date under Vivad se Vishwas Scheme | 90 |
| 35, 36 | Apr 22 | TCS on luxury goods above Rs. 10 lakh | 206C |
| 38 | Apr 23 | No deduction for legal contravention expenses | 37 |
| 40 | Apr 29 | ITR-1/4 eligibility expanded; Rule 12 and ITR forms amended | 112A, 44AD etc. |
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