Amendment to Income Tax Rule 2DCA – Income-tax (25th Amendment) Rules 2025

Amendment to Income Tax Rule 2DCA – Income-tax (Twenty-Fifth Amendment) Rules, 2025

Income Tax Rule 2DCA was introduced by the Central Board of Direct Taxes (CBDT)via Notification No. 50/2022 (dated 6 May 2022). It lays out the methodology for computing minimum investment and exempt income under clause (23FE) of Section 10 of the Income-tax Act, 1961.

CBDT has issued Notification No. 141/2025 dated 01.09.2025 his extending the validity of the exemption regime under Section 10(23FE) for sovereign and pension funds by six more years beyond the original sunset date.

Ministry of Finance
(Department of Revenue)
(Central Board of Direct Taxes)

Notification

New Delhi, the 1st September, 2025

(INCOME-TAX)

G.S.R. 598(E).— In exercise of the powers conferred by section 295 read with the fourth, fifth and sixth provisos and Explanation 3 to clause (23FE) of section 10 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 (Twenty-Fifth Amendment) Rules, 2025.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in rule 2DCA,––

(a) in sub-rule (2), in the fourth proviso,–

(i) for the figures “2025-26”, the figures “2031-32” shall be substituted;

(ii) for the figures “2024-25”, the figures “2030-31” shall be substituted;

(b) in sub-rule (3), in the fourth proviso,–

(i) for the figures “2025-26”, the figures “2031-32” shall be substituted;

(ii) for the figures “2024-25”, the figures “2030-31” shall be substituted;

(c) in sub-rule (4), in the third proviso, –

(i) for the figures “2025-26”, the figures “2031-32” shall be substituted;

(ii) for the figures “2024-25”, the figures “2030-31” shall be substituted;

(d) in Explanation 1,–

(i) in clause (d), for the figures “2024”, the figures “2030” shall be substituted;

(ii) in clause (e), for the figures “2024”, the figures “2030” shall be substituted;

(iii) in the proviso to clause (h), for the figures “2024-25”, the figures “2030-31” shall be substituted.

[F. No. 141/2025/F. No. 370142/30/2025-TPL]

ROHIT SINGH,
Under Secy., Tax Policy and Legislation

• Object of assessment proceedings is not to find empirically correct solution on every fact issue – HC
• Penalty u/s 270A deleted as assessee filed revised computation during scrutiny
• Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT
• Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT
• Once assessee discharges primary onus, it shifts to AO to bring evidence to contrary – ITAT