Company secretaries' apex body ICSI on Thursday continued to pitch for recognising its members as accountants and urged the government to undertake a comprehensive overhaul of taxation laws.

The comments from the Institute of Company Secretaries of India (ICSI), set up under an Act of Parliament, come against the backdrop of the Parliamentary Select Committee not considering the body's submission to be included in the definition of 'accountant' in the Income Tax Bill.

In a statement, ICSI said it will continue to advocate recognition of the company secretary profession within the definition of 'accountant', and ensure that the roles and opportunities for company secretaries are effectively incorporated into policy-making processes.

To realise the vision of Viksit Bharat, there is a need for a holistic policy review and the government should undertake a comprehensive overhaul of taxation Laws, with a clear focus on inclusive and future-ready reforms, it noted.

Sudhir Kaushik Co-founder & CEO, TaxSpanner: Switching between mutual funds—whether within the same AMC or to a different one—is not tax-free. It is treated as a redemption followed by a fresh investment, thus attracting capital gains tax. If the original investment was in equity-orient ed mutual funds held for over a year, gains are subject to Long-Term Capital Gains (LTCG) tax. LTCG exceeding Rs 1.25 lakh in a financial year is taxed at 12.5% with indexation. To reduce tax impact, consider redeeming in phases over 3-5 years to utilise the annual exemption.

I want to transfer all the mutual funds I have been investing in for the past 10 years to my father. Currently, he is a nominee in most of them. How do I transfer these without any tax implications as the gains for these would be substantial?

Amit Maheshwari Tax Partner, AKM Global: As per Section 47 of the Income-tax Act, 1961, any capital asset transferred as a gift shall not be considered a transfer.

Amid spiralling gold prices, some of the jewellers have played around with accounting rules to suppress profits and pay lower tax.

The income tax (I-T) department has spotted a few units which violated regulations by changing the way they value their inventories-a trick that let them record lower profits, sources told ET. This, they said, has been going on for the past five to six years. Indeed, one of the jewellery houses has forked out close to Rs 100 crore tax on the suppressed earnings.

These jewellers are found to have switched the valuation strategy from FIFO (first-in-first-out) to LIFO (last-in-first-out) to lower the valuation of closing stock, comprising unused gold purchased as raw material, semi-finished products and unsold, finished jewellery. A closing stock value directly impacts profits-lower stock means lower profits and therefore lower tax.

The Income Tax Department has now enabled utilities for filing updated income tax returns (ITR-U) in ITR-1 and ITR-2 for the assessment years (AY) 2021-22 and 2022-23 as per Finance Act, 2025.

Union Budget 2025 announced that taxpayers will now have up to 48 months from the end of the relevant assessment year to file an updated return under Section 139 (8A) of the Income Tax Act. This extended time allows individuals to fix errors or omissions in their previous filings by paying more taxes, even if they did not submit a return or filed it incorrectly. However, there are some limits and restrictions on who can file an updated income tax return and when.

What is an Updated Income Tax Return (ITR-U)?
ITR-U provides an opportunity for voluntary compliance to taxpayers in order to rectify errors/ omissions with an objective to reduce litigation.

Finally, after 121 days into the new financial year, the Income Tax Department has enabled online filing of Income Tax Return form number 3 (ITR-3).

Excel utility of ITR Form 3 for AY 2025-26 was released on July 11, after 100 days had passed since the start of the ITR filing season.

Now that both online and offline utilities have been released by the tax department for ITR-3, taxpayers with business income, income from share trading (such as futures and options), or those who even have investments in unlisted shares can now file their income tax returns online on the e-filing portal of the Income Tax Department.

Who is eligible to file ITR-3
Individuals and Hindu Undivided Family (HUFs) are eligible to file ITR-3 if income is earned from business or profession. ITR-3 filing is applicable when there is income from business or profession (both tax audit and non-tax audit cases presumptive taxation is not opted).

The Central Board of Direct Taxes (CBDT) has relaxed the time limit for processing income tax returns filed electronically that were incorrectly invalidated by the CPC-Bengaluru due to technical reasons.

The CBDT, in circular issued Monday, directed that returns of income filed electronically up to March 31, 2024, which were erroneously invalidated, shall now be processed and intimations of these returns shall be sent to the assessees by March 31, 2026.

The decision will enable assessees to receive refunds along with applicable interest. However, refunds will not be made if PAN-Aadhaar linkage is not found, as per existing guidelines.

It seems that long waits and weeks of uncertainty after filing income tax returns (ITRs) have become the thing of the past, at least for many individual taxpayers. This year, many taxpayers are receiving their income tax refunds within mere hours of e-filing their income tax returns.

This is a major shift from past years, where refunds used to take more than 90 days. In the current assessment year (AY 2025-26), some taxpayers have received their tax refunds in their bank accounts within 4 hours of filing their return. One might recall the time some 12-13 years ago when this refund used to take more than 90 days to come. Now, thanks to fast digital processes, this time is getting reduced to hours.

Refund came in a few hours! Taxpayers’ experience
One media professional, Arun Prakash from Noida, received his tax refund within 4 hours of submitting ITR on the e-filing portal of the Income Tax Department. He says, “I filed my return using ITR Form 1 at around 5.03 pm, and by 9.02 pm on the same day, the refund came in my bank account.” He shared with us timestamped proof of both the ITR submission and the refund credit to back his claim. Below are screenshots of the confirmation messages showing the exact filing and refund times.

Filing your income tax return (ITR) may soon become more easier. The Select Committee submitted a report to Parliament, recommending major changes that may improve the annual tax filing experience.

The committee submitted its report to Parliament on 21 July. It’s over 4,500 pages long and includes 285 suggestions to improve the draft New Income Tax Bill, 2025, which is meant to replace the old 1961 Act. Among the many proposals, a few stand out that could directly benefit ordinary taxpayers. Here are three major changes being considered:
NO PENALTY IF YOU’RE FILING JUST FOR REFUND
At present, if you miss the ITR deadline, even if you’re filing just to get a refund, you may be charged a penalty of up to Rs 1,000.

But the committee has recommended a welcome change. If your total income is below the taxable limit and you're filing only to claim a refund, you should not be penalised for missing the deadline.

This move is aimed at small taxpayers and salaried individuals who often file returns just to claim a refund but end up paying fines. It could offer relief to lakhs of people and make the system fairer.

Why you need to claim Form 10E when you receive salary arrears
If you have received a salary hike or promotion with arrears—salary that should have been paid in the previous years—it can inflate your taxable income in the year you receive it. Unless you can claim tax relief, you may end up paying more tax than necessary. Enter Form 10E. It assists you in reducing your taxation by allowing you to claim relief under Section 89(1) of the Income Tax Act for advance or excess income.

How it reduces your tax burden
Tax in India is calculated through a slab system that is progressive in nature. If you are getting arrears for one year, your total income will go up—maybe pushing you into a higher tax slab than usual. But you did not earn the whole income in the said year. Form 10E allows the Income Tax Department to adjust the arrears to the years it was actually due in. This helps you to get relief from the additional tax due to bunching of income.

The central government is continuously working to simplify and streamline the tax system, aiming to reduce disputes. In this direction, Union Finance Minister Nirmala Sitharaman has reportedly given strict instructions to the Central Board of Direct Taxes (CBDT) to identify all departmental tax appeals involving amounts less than the “revised monetary limit announced by the Central Government in Budget 2024-25” and withdraw them within three months.

This move is part of a comprehensive initiative to enhance the efficiency of tax administration, reduce the legal burden on taxpayers, and alleviate the judicial system of unnecessary disputes.

“Good policies are not enough in themselves, the real meaning lies in their timely implementation,” the Finance Minister said while addressing senior tax officials during the 166th Income Tax Day celebrations on July 24.

The new Income-Tax Bill aims to simplify the language and structure of India’s tax law without altering its core policy framework, according to Lok Sabha MP Baijayant Panda. He noted that the existing Income Tax Act, 1961—now over six decades old and amended thousands of times—had become overly complex, even for experts, leading to frequent disputes and confusion.

The new Income-Tax Bill seeks to simplify language and structure without changing existing tax policies, said Lok Sabha MP Baijayant Panda, who chaired the 31-member select committee that reviewed the draft. In an interview with Business Standard, he clarified that the proposed legislation does not override the intent of the Income Tax Act, 1961, but modernises it to reduce complexity, litigation, and confusion for taxpayers.

Finance minister Nirmala Sitharaman on Wednesday said delays in the issuance of ‘order giving effect or OGE’ to taxpayers by the income tax department for execution of grievance disposal orders are ‘unpardonable’ and may risk losing taxpayers’ trust.

Finance Minister
Addressing the Income Tax Day here, she commended the work done by the department to draft the simplified, concise and easy-to-understand ‘Income Tax Bill 2025’, which will replace the complex Income Tax Act 1961. The minister appreciated the suggestions made by the Lok Sabha Select Committee and said those will be considered. She said the Bill will likely be approved by the Parliament in the current year.

She highlighted five key operational priorities from a 2025 meeting that the department has to execute: accelerating tax demand disposal, withdrawing appeals below a threshold, timely tax refunds, analysing grievances and region-wise performance reviews.

The Income Tax department is working to give shape to the rules, forms and procedures for the new Income Tax Bill, 2025, which aims to simplify the six-decade old direct tax law.

Speaking at the 166th Income Tax Day event here, Central Board of Direct Taxes (CBDT) Chief Ravi Agarwal also said the department is following the principle of 'enforcement with empathy', wherein it is enabling taxpayers to review and voluntarily update their finances.

Agarwal said "work is already underway to give shape to its rules, forms, and procedures, a critical next step... These will define how the law functions and practice. And I am confident that just like the bill, these too would reflect our shared commitment to clarity, simplicity, and taxpayer convenience".


The new Income Tax Bill, 2025, was introduced in Parliament on February 13, 2025, and was referred to a parliamentary panel. The panel was submitted its report to Parliament on July 21 suggesting some changes to the I-T bill.

The Income Tax Department has stepped up its monitoring and compliance efforts by harnessing the power of artificial intelligence (AI) to track online taxpayer behaviour and identify inconsistencies in returns, reports Indian Express. According to Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal, the department is analysing online activity, financial transactions, and return-filing patterns to nudge taxpayers towards better compliance.

AIS portal
One of the key behavioural insights comes from how often users access the Annual Information Statement (AIS) online. On average, taxpayers visited the portal 3.5 times, amounting to 24 crore visits in total. However, only 9 crore tax returns were filed last year, despite 40 crore AIS documents being generated from over 650 crore financial transactions.

A man hoped marriage would bring small comforts -- like someone to make him morning tea. Months later, he sighs and says to a friend: "Earlier I made one cup, now I make two." So much for simplifying life.

I apologise for starting the column with a politically incorrect joke. But it sums up the situation well: Things meant to ease life sometimes cause double the effort.

The digital tax era promised ease -- pre-filled returns, real-time data, and seamless reporting.

Instead, it has created a Kafkaesque mess, especially for taxpayers who added a spouse or parent as joint holder to simplify succession.

Despite more than 500,000 appeals pending at the Commissioner of Income Tax (Appeals), or CIT (A), level, the finance ministry (FinMin) has not favoured mandating statutory deadlines for disposal of such income tax (I-T) appeals.

Experts and stakeholders had made submissions before the Select Committee on the Income Tax Bill, seeking time limits for disposal of appeals.

'In the Income Tax Bill, 2025, no time limit is prescribed for hearing of the appeal as well as for passing of the order.

'Even under the Income Tax Act, 1961, no time limit was prescribed.

'The huge and heavy pendency of appeals before the First Appellate Authorities, viz. the CIT (Appeals) and Jt CIT (Appeals), needs no introduction...

'Further, the significance and importance of timely disposal of appeals by such a crucial authority as the First Appellate Authority cannot be overemphasised,' the Select Committee summarised the suggestions by stakeholders on the issue.

The Lok Sabha Select Committee has recommended two key amendments regarding tax deductions on income from house property. One of the key amendments proposed by the Committee is to allow a standard deduction of 30% from the gross annual value (GAV) of a house property after deducting municipal taxes. The second significant amendment they recommended is to allow a deduction of home loan interest when calculating income from rented (let-out) house properties.

What did the Select Committee recommend?
According to the press release dated July 21, 2025, the Select Committee of the Lok Sabha recommended:

Deductions from income from house property (Clause 22, 22(1), and 22(2)):
The Committee, after deliberations on Clause 22, identified the need to clarify the computation of deductions to enhance fairness and transparency for property owners. The Committee, therefore, recommended two key amendments:

The government has raised tax and penalty demands of over Rs 35,105 crore and filed 163 prosecution complaints between July 1, 2015 and March 31, 2025, under the foreign black money law, minister of state for finance Pankaj Chaudhary told Rajya Sabha on Tuesday.

Furthermore, 1021 assessments have been completed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA) till March 31.

Under the law, the government has recovered Rs 338 crore towards tax, penalty and interest between July 1, 2015 and March 31, 2025, the minister said.

“The tax demand gets crystallised conclusively when appeals, if any, preferred before CIT(A), ITAT, High Court and Supreme Court are decided,” he said.

Disclosure requirements
Under the Black Money Act, 2015, it is mandatory for assesses to disclose all foreign assets and income in specified schedules while filing I-T returns. Any non-disclosure attracts a penalty.

As the tax filing season for FY 2024-25 (AY 2025-26) begins, taxpayers are preparing to file their Income Tax Return (ITR). However, this year's ITR filing experience will be different from previous years due to several modifications introduced by the Income Tax Act of 1961 for FY 2024-25, which are proving to be a challenge for many taxpayers. The revised ITR forms for FY 2024-25 (AY 2025-26) and a more rigorous data collection and verification process have raised concerns about the increased complexity of filing ITR this year.

ET Wealth Online spoke to several tax experts to gain insights into the changes in this year's ITR filing process, the reasons behind the increased complexity, and the potential for enhanced scrutiny by the Income Tax Department.

Has the ITR filing process become tougher this year with the introduction of new forms and utilities?
The changes introduced in the ITR filing this year have significantly increased the complexity of the ITR filing process.

The capital gain tax rule for various categories of mutual funds has been updated in FY 2024-25. The new capital gain tax rules for mutual funds will stay in effect till they are changed again by the government.

ET Wealth online spoke with Naveen Wadhwa, Vice-President of Research & Advisory at Taxmann.com, to understand the old and new capital gains tax rules for different categories of mutual funds. The rules mentioned below apply to individuals whose residential status is either Resident but ordinarily resident (ROR) or Resident but not ordinarily resident (RONR).

The mutual fund capital gains taxation rules mentioned below are for the FY 2024-25 (AY 2025-26). These rules will help you to understand the capital gains tax calculation while filing income tax return (ITR) this year.

Wadhwa says, "For taxation purposes, mutual funds are categorised as equity mutual funds and non-equity mutual funds. The new and old rules for the computation of capital gains from equity mutual funds are the same as those for listed shares.