CBDT Releases Supplementary FAQs On The Finance Bill, 2025

The Central Board of Direct Taxes (CBDT) has released Supplementary FAQs to clarify the proposed changes in the Finance Bill, 2025, covering key amendments in tax provisions related to investment funds, IFSCs, alternative investment vehicles, and taxation procedures.

The Finance Bill proposes that indirect participation by Indian residents in eligible investment funds will no longer be counted towards the 5% limit. This change is expected to reduce compliance burdens and facilitate the relocation of fund managers of offshore funds to India.

The amendment of Proposed Section 44BBD clarifies that specific sections related to permanent establishment and taxation of royalties and fees for technical services (Sections 44DA and 115A) will not apply to income included in the presumptive taxation scheme under Section 44BBD.

These FAQs encapsulates the key amendments proposed in the Finance Bill, 2025, regarding various sections of the Income-tax Act, 1961, focusing on compliance, taxation, and definitions relevant to investment funds and non-residents.

Read FAQs: