CBDT Mandates E-Filing For Business Trusts And AIFs Under Revised Tax Rules

The Central Board of Direct Taxes (CBDT), through Notification No. 17/2025, has amended the Income-Tax Rules, 1962, under the Income-Tax Act, 1961. These changes focus on Sections 115UB, 115TD, 115TA, and 115TCA, enhancing clarity in the taxation and reporting of business trusts, investment funds, and related entities.

The Income-tax (Fifth Amendment) Rules, 2025, notified on Monday, require detailed reporting by entities like real estate, infrastructure investment trusts, and securitization trusts to enhance tax compliance.

The amendments introduce new forms for reporting income distribution to investors, incorporating recent legislative changes and modifying certain due dates. The amendment clarifies tax rates and deductions for business trusts, REITs, and AIFs. It also revises capital gains tax under Sections 112A and 111A, removing the 10% and 15% rates for certain gains and aligning them with updated rules.

The updated rules ensure more transparent reporting mechanisms and address ambiguities in the taxation framework, aligning with the evolving financial landscape.

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