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Date: 2025-03-27 Category: Extra Ordinary State: Union Government Country: India

Notification u/s 295 read with section 194T of the Income Tax Act, 1961

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Central Board of Direct Taxes (CBDT) amends the Income-tax Rules, 1962, specifically concerning Form 26Q and Form 27Q. These amendments are made in exercise of the powers conferred by section 295 read with section 194T of the Income-tax Act, 1961.
  • The amendment is called the Income-tax (Seventh Amendment) Rules, 2025 and comes into effect from the date of its publication in the Official Gazette.

Key Changes

  • Form 26Q is updated to include reference to section 194T in its heading. The annexure to Form 26Q is modified to include '194T Payment of salary, remuneration, commission, bonus or interest to a partner of firm 94T' in Note 16.
  • Form 27Q is updated to include reference to section 194T in its heading. The annexure to Form 27Q is modified to replace the row '195 Other sums payable to a non-resident 195' with two rows: '194T Payment of salary, remuneration, commission, bonus or interest to a partner of firm 94T' and '195 Other sums payable to a non-resident 195' in Note 13.

Impact Analysis

Tax Compliance

  • These amendments ensure proper reporting and tracking of payments made to partners, potentially improving tax compliance and reducing tax evasion.

Stakeholders

  • Tax Software Providers: Need to update their software to incorporate these changes in Forms 26Q and 27Q.

Action Items

  • Communicate these changes to relevant stakeholders, including partners and tax advisors.

Key Entities Referenced

Central Board of Direct Taxes (CBDT): The issuer of the notification and the authority responsible for amending the Income-tax Rules, 1962. Income-tax Act, 1961: The principal act governing income tax in India. Section 295 and 194T are specifically mentioned as the source of power for these amendments. Income-tax Rules, 1962: The rules framed under the Income-tax Act, 1961, which are being amended by this notification. Form 26Q: Quarterly statement of deduction of tax for payments other than salaries. Form 27Q: Quarterly statement of deduction of tax for payments to non-residents. Section 194T: The section related to Payment of salary, remuneration, commission, bonus or interest to a partner of firm.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-डी.एलxx.x-GअID.-E2x7xx0 32025-262000 CG-DL-E-27032025-262000 असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 160] नई दिल्ली, बहृ स्ट्प जतिार, माच ड 27, 2025/ चत्रै 6, 1947 No. 160] NEW DELHI, THURSDAY, MARCH 27, 2025/ CHAITRA 6, 1947 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्‍दर ीय प्रत्य क्ष कर बोडड) अजधसचू ना नई दिल्ली, 27 माच,ड 2025 सा.का.जन. 195(अ).— केन्‍द रीय प्रत् यक्ष कर बोड,ड आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 194न के साथ पठित धारा 295 द्वारा प्रित् त िज‍त यों का प्रयोग करत े हुए, आय-कर जनयम, 1962 का और संिोधन करन े के जलए जनम्न जलजखत जनयम बनाता ह,ै अथाडत ् :-- 1. (1) इन जनयमों का संजक्षप् त नाम आय-कर (सातिां संिोधन) जनयम, 2025 ह ै। (2) य ेरािपत्र में प्रकािन की तारीख से प्रिृत् त होंगे । 2. आय-कर जनयम, 1962 के पठरजिष्ट 2 म,ें-- (अ) प्ररूप सं0 26थ में,-- (i) िीर्डक में, “194थ,” अंकों और अक्षर के पश्चात,् “194न,” अंक और अक्षर अंत:स्ट्थाजपत दकए िाएंगे ; (ii) उपाबंध के ठिप्पण सं0 16 में, सारणी के अंत म,ें जनम्नजलजखत अतं :स्ट्थाजपत दकया िाएगा, अथाडत् :-- “194न फमड के दकसी भागीिार को िेतन, पाठरश्रजमक, कमीिन, बोनस या ब्याि 94न”; का संिाय (आ) प्ररूप सं0 27थ में,-- (i) िीर्डक में, “194ढ,” अंकों और अक्षर के पश्चात,् “194न,” अंक और अक्षर अंत:स्ट्थाजपत दकए िाएंगे ; (ii) उपाबंध के ठिप्पण सं0 13 की सारणी में,-- 2147 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] “195 अजनिासी को अन्‍दय िेय रकम 195”; पंजि के स्ट्थान पर, जनम्नजलजखत पंजियां रखी िाएंगी, अथाडत ् :-- “194न फमड के दकसी भागीिार को िेतन, पाठरश्रजमक, कमीिन, बोनस या ब्याि 94न का संिाय 195 दकसी अजनिासी को िेय अन्‍दय रकम 195” [फा. स.ं 22/2025/फा0स0ं 370142/08/2025-िीपीएल] आिीर् कुमार अग्रिाल, उप सजचि ठिप्पण--मूल जनयम, भारत के रािपत्र, असाधारण, भाग 2, खंड 3, उपखंड (ii) म,ें अजधसूचना सं0 का0आ0 969(अ), तारीख 26 माचड, 1962 द्वारा प्रकाजित दकए गए और अजधसूचना सं0 सा0का0जन0 193 (अ), तारीख 25 माच,ड 2025 द्वारा अंजतम बार संिोजधत दकए गए । MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 27th March, 2025 G.S.R. 195(E).— In exercise of the powers conferred by section 295 read with section 194T of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2025. (2) They shall come into force on the date of their publication in Official Gazette. 2. In the Income-tax Rules, 1962, in Appendix II,–– (A) in Form No. 26Q, –– (i) in the heading, after the figures and letter “194S”, the figures and letter “194T” shall be inserted; (ii) in the Annexure, in the Note no. 16, in the Table at the end, the following shall be inserted, namely :– “194T Payment of salary, remuneration, commission, bonus or interest to a partner 94T”; of firm (B) in Form No. 27Q,–– (i) in the heading, after the figures and letter “194N”, the figures and letter “194T” shall be inserted; (ii) in the Annexure, in the Note no. 13, in the table, for the row,– “195 Other sums payable to a non-resident 195”, the following rows shall be substituted, namely :– “194T Payment of salary, remuneration, commission, bonus or interest to a partner of 94T firm 195 Other sums payable to a non-resident 195” [No. 22/2025/F. No. 370142/08/2025-TPL] ASHISH KUMAR AGRAWAL, Dy. Secy. Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), vide notification number S.O. 969 (E), dated the 27th March, 1962 and were last amended vide notification number G.S.R 193 (E), dated the 25th March, 2025. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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