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.

Relaxation of time limit for processing electronic income tax returns, permitting late processing and consequent refund actions.
The Board relaxes the processing timeframe for valid electronic returns filed pursuant to condonation of delay orders, directing that intimations under the return processing provision be issued to affected taxpayers by a specified deadline; exclusions apply where assessment or reassessment proceedings were completed after filing. Consequential effects, including refunds with interest, will follow subject to PAN Aadhaar linkage conditions, and the systems authority must prescribe procedures to process such returns and send intimations.

Information sharing under section 138(1)(a): tax systems to flag return filing status and income threshold to petroleum ministry.
Director General of Income-tax (Systems), New Delhi is designated to provide Aadhaar or PAN-based responses to the Ministry of Petroleum & Natural Gas: if PAN is provided or Aadhaar is linked to PAN, DGIT will flag return filing status and whether income exceeds the threshold; if Aadhaar lacks PAN linkage, DGIT will report that information cannot be made available due to absence of PAN-Aadhaar linkage. Operational details, confidentiality, mode and frequency of data exchange, and timelines will be set out in a modified Memorandum of Understanding.

Compulsory scrutiny selection: designated case categories require centralised selection, NaFAC notice service, and transfer to central charges.
Guidelines set six parameters for compulsory selection of returns for Complete Scrutiny in FY 2025-26, covering survey-related cases, two bands of search-and-seizure/requisition cases, revoked or denied registration/approval with ITR-7 exemption claims, recurring additions in prior years made final or upheld for revenue, and cases based on specific intelligence of tax-evasion. Selection requires administrative approvals, centralised selection by the Systems Directorate in specified parameters, service of assessment notices through jurisdictional officers or NaFAC as directed, mandatory upload of underlying documents, and prompt transfer of cases to Central Charges where required.

Processing of delayed income tax returns: intimations to be issued by board, excluding scrutiny and taxpayer caused delays.
Board relaxes the proviso to assessment processing timelines for electronically filed valid returns under filing provisions for AY 2023 24 whose intimation period had lapsed, directing processing and issuance of intimations by 30.11.2025. Exclusions cover returns selected for scrutiny and returns unprocessed due to assessee attributable reasons. Refunds will not be made where PAN and Aadhaar are not linked, per the circular on PAN Aadhaar linkage and refund conditions.

Taxpayer data sharing for beneficiary identification: tax authority to flag return filing status and income threshold to the State.
Direction designates the Director General of Income tax (Systems) to furnish taxpayer information to Maharashtra by receiving Aadhaar or PAN with Assessment Years and replying with a "Yes/No/Not Available" flag on return filing status and threshold income; where Aadhaar lacks PAN linkage, the DGIT (Systems) will report that information cannot be provided due to absence of PAN Aadhaar linkage. The DGIT (Systems) will determine frequency and mode of exchange in consultation with the State and must conclude an MoU addressing data transfer, confidentiality, preservation, weeding, and timelines, with a copy of the MoU sent for record.

Extension of return filing due date: deadline for specified non audited assessees extended under Section 119 to mid September.
The Central Board of Direct Taxes, exercising powers under Section 119 of the Income tax Act, extends the due date for furnishing the return of income under sub section (1) of section 139 for assessees referred to in clause (c) of Explanation 2 to sub section (1) of section 139 for the Assessment Year 2025 26, moving the filing deadline from 31st July, 2025 to 15th September, 2025.

Waiver of interest permitted where TDS/TCS payments debited on time but credited late due to technical glitches.
Order authorizes CCIT/DGIT/PrCCIT under section 119 to reduce or waive interest under section 201(1A)(ii)/206C(7) where TDS/TCS payments were debited from the taxpayer's bank account on or before the due date but not credited due to technical problems beyond taxpayer control; a speaking order after hearing and verification from the bank/Directorate of Systems is required; paid interest may be refunded if waived; applications must be filed within one year from end of the relevant financial year and disposed of within six months; the designated officer's order is final.

Compounding of offences: revised framework allows filing anytime, sequences affect compounding charges and payment terms.
Guidelines set the framework for compounding of offences under the Income Tax Act: all offences are compoundable, compounding is not admission, and applications may be filed at any time before the jurisdictional Principal CCIT/CCIT/Pr. DGIT/DGIT using the Annexure I affidavit format. Pending applications as on issuance are governed by the revised rules without fresh filing or fee; defective applications may be cured within one month. Compounding charges are re computed for pending matters as first applications and for subsequent applications are increased by multiplicative rates per sequence, with a 50% surcharge for applications filed more than 12 months after prosecution initiation; payment extensions up to 24 months are allowable without interest.