Automatic Exchange of Information reporting authorized for Annual Information Statement uploads in Form 26AS, with procedure standards to be specified.
Authority is conferred on the Director General of Income-tax (Systems), Delhi to upload in the Annual Information Statement in Form No. 26AS information received under the Automatic Exchange of Information framework under agreements referred to in sections 90 and 90A of the Income-tax Act, 1961. The authorization covers specified periods and requires the Director General to specify the procedures, formats and standards for uploading the information in Form No. 26AS.

Condonation of delay in Form No. 10AB filing allows late 80G renewal applications to be decided on merits.
Condonation of delay is provided for electronic filing of Form No. 10AB for renewal of approval under clause (ii) of the first proviso to section 80G(5), where the prescribed application was furnished between 01.10.2025 and 31.03.2026. The jurisdictional Principal Commissioner of Income-tax or Commissioner of Income-tax is authorised to dispose of such applications on merits and pass orders on or before 31.12.2026. No automatic entitlement to approval follows from this condonation.

Compulsory scrutiny guidelines set selection parameters for survey, search, reassessment, exemption claims, recurring additions, and tax-evasion information.
Guidelines prescribe compulsory selection of returns for complete scrutiny in Financial Year 2026-27 on specified parameters, including survey cases, search or requisition cases, notice under section 148 cases, cancelled or withdrawn registration or approval with exemption claims, recurring additions in earlier years above prescribed thresholds, and cases involving specific tax-evasion information. The instructions also set out approval, transfer, NaFAC processing, service of notice under section 143(2), document upload requirements, and separate treatment for International Taxation and Central Charges cases.

Safe harbour rules for rough diamond sales clarify eligibility, tax rate, deductions, withholding tax, and invalidation conditions.
Clarifications are issued on the safe harbour regime for a foreign company engaged in the sale of rough diamonds in Special Notified Zones. The circular states that only diamonds meeting every element of the definition of raw diamonds are covered, that sorted diamonds are excluded, and that a Kimberley Process Certificate alone is insufficient. It also clarifies the tax rate, denial of deductions, the application of DTAA credit, withholding tax, separate taxation of an Indian trader, invalidation for incorrect facts or concealment, and the position where no safe harbour option is exercised.

Document Identification Number rules for income-tax communications allow limited exceptions, post-facto approval, and system upload requirements.
DIN requirements for income-tax communications apply to notices, orders, summons and similar correspondence issued to persons other than officers or authorities, and DIN may be referenced by attachment, email mention or other mode without needing every page to carry DIN. Public communications are excluded. Exceptional cases permit issue without DIN, but the communication must state the reason, obtain post-facto approval within 15 days, and be uploaded on the system within 15 working days with appropriate DIN referencing.

Sovereign wealth fund notification framework sets application and quarterly reporting requirements for investment-linked tax exemption eligibility.
Notification framework for Sovereign Wealth Funds under Schedule V of the Income-tax Act, 2025 provides the procedure for notification and reporting. A fresh applicant must file Form I with the designated CBDT Member, while already notified funds need not reapply. Every notified sovereign wealth fund must file a return of income with audit report and submit a quarterly electronic Form II statement within one month of each quarter end for each investment made.

TDS certificate timeline extended for portal-related delays, with certificates issued in the extended period treated as timely.
Section 119 of the Income-tax Act, 1961 extends the due date for issuance of TDS certificates under section 203 read with rule 31 for the quarter ending 31 December 2025. The extension is granted because deductors faced delays caused by technical glitches on the e-filing portal, which impeded timely generation and issue of certificates within the prescribed period. The revised due date is extended to 31 March 2026, and any TDS certificate issued within the extended period is to be treated as having been issued within the prescribed time.

Condonation of delay in Form 10A filings clarified for trust registration under the income tax law.
Power to condone delay in filing Form No. 10A for registration under section 12A(1)(ac)(i) is clarified to rest with the jurisdictional Principal Commissioner of Income-tax or Commissioner of Income-tax. Although the Director of Income-tax (Centralized Processing Centre), Bengaluru remains the statutory authority to issue registration upon applications in Form 10A, the authority to condone delay in filing such applications lies with the jurisdictional Principal Commissioner or Commissioner.

Income tax filings: CBDT extends ITR due date to 10 December 2025 and audit report to 10 November 2025.
The CBDT, under Section 119, extends the ITR due date for assessees covered by clause (a) of Explanation 2 to s.139(1) for AY 2025-26 from 31 October 2025 to 10 December 2025, and correspondingly extends the specified date for furnishing the report of audit under the Explanation to Section 44AB to 10 November 2025.

Entertainment sector assessment: pre operative expenses to be examined for amortisation under section 35D.
Paragraph 2.1 of the Board's letter dated 21.10.2025 is amended to state that pre operative expenses of assessees in the entertainment sector should be examined with reference to actual commencement of business and allowed for amortisation under section 35D of the Income tax Act, 1961.

MAP outcomes and appeal withdrawal: CIT(A) intimation will serve as proof of withdrawal to implement MAP resolutions.
The memorandum directs that when a taxpayer seeks withdrawal of an appeal pending before CIT(A) pursuant to a MAP resolution under sub rule (8) of Rule 44G, the CIT(A) shall issue an intimation accepting withdrawal of the appeal or specified grounds; that intimation shall be treated as proof of withdrawal of appeal for giving effect to the MAP resolution.

Entertainment sector tax audit finds inconsistent expense verification, weak Form 52A monitoring, TDS gaps and data sharing failures.
Audit identifies inconsistent AO treatment of pre operative expenses, failure to verify production reimbursements and foreign incentives, ineffective monitoring and non use of Form 52A (lacking PAN and non submission), weak inter unit and inter agency data sharing (including state entertainment tax and CBFC), absence of TDS on distribution rights under production and inconsistent withholding on foreign line producer payments, and recurring procedural and computational assessment errors; recommends CBDT instructions, Form 52A redesign and proactive enforcement, refined codes for emerging segments, centralized assessment in film circles, improved data exchange and IT based validation of tax computations.

Extension of specified date for audit report filing: CBDT extends filing deadline under statutory power for FY audit reports.
The Central Board of Direct Taxes, exercising its statutory power, extends the specified date for assessees covered by clause (a) of Explanation 2 to sub section (1) of section 139 for furnishing reports of audit under any provision of the Income tax Act for the financial year 2024 25 (relevant to assessment year 2025 26), substituting the earlier prescribed specified date with a later deadline for that class of assessees.

Waiver of interest for delayed demand payments due to incorrect rebate, if paid by the specified deadline.
The Board directs waiver of interest under section 220(2) for demands arising from rectification that disallows rebates incorrectly allowed on incomes chargeable at special rates, provided the taxpayer pays the demand by the specified deadline; if not paid by that deadline, interest under section 220(2) will be charged from the day after the period specified in sub-section (1) of section 220.

Due date extension for income tax returns: filing deadline for specified non auditable assessees moved to 16 September.
The Central Board of Direct Taxes, invoking its power to extend due dates, shifts the ITR filing deadline for Assessment Year 2025-26 for non auditable assessees referred to in clause (c) of Explanation 2 to sub section (1) of the return filing provision, moving the due date from 15 September 2025 to 16 September 2025.

Extension of investment deadline under clause (23FE) of section 10 updates qualifying date to 31 March 2030.
The circular updates administrative guidance to reflect the Finance Act, 2025 amendment by extending the qualifying investment date for the exemption under clause (23FE) of section 10 to 31st March, 2030 effective 1st April, 2025, and directs that references to 31.03.2024 in the opening paragraph and in paragraphs 4.6.2 and 4.6.3 of Circular No. 9 of 2022 be read as 31st March, 2030.

Prosecution exemption for small undisclosed foreign assets: no prosecution where such assets (other than immovable property) fall below prescribed threshold.
The Board directs that prosecution proceedings will not be initiated where penalty is not imposed or imposable in relation to assets (other than immovable property) whose aggregate value does not exceed the prescribed threshold; this amendment aligns the prior instruction with the statutory change and is effective from the date the proviso to the penalty provisions was amended.

Time-limit relaxation for processing electronically filed returns allows validation, intimation to taxpayers, and refund actions.
The Board has directed a time-limit relaxation to validate and process electronically filed returns erroneously invalidated by CPC: returns filed up to 31.03.2024 shall be processed and intimations issued by 31.03.2026. Consequential actions, including refunds with interest, will follow, subject to the condition that refunds will not be paid where PAN-Aadhaar linkage is absent.

PAN inoperative relief: deductors/collectors exempted from higher TDS/TCS where PAN is cured within prescribed timelines.
The Board partially modifies prior guidance to relieve deductors/collectors from higher TDS/TCS liability under sections 206AA/206CC where PANs become operative through Aadhaar linkage within specified timelines: for payments from 01.04.2024 to 31.07.2025 if PAN is operative on or before 30.09.2025, and for payments on or after 01.08.2025 if PAN is made operative within two months from the end of the month of payment; in such cases withholding shall follow other provisions of Chapter XVII-B or XVII-BB.

Interest waiver authority: prescribed officers may grant waivers under sections 201(1A)(ii) and 206C(7) subject to filing deadlines.
The prescribed authority is empowered to grant waiver orders only after the Circular's issue date; applications must be filed within one year from the end of the financial year in which the interest is charged, and waiver requests may relate to interest charged before the Circular's issuance so long as the one year filing period measured from the end of the relevant financial year has not elapsed.