Assurance Gazette – June 2025 Edition

Welcome to the Assurance Gazette for June 2025 Edition. This edition highlights the key amendments relevant to Form 3CD for Assessment Year 2025-26, applicable from April 1, 2025. The Finance Act introduced amendments to ensure Income-tax provisions align with reporting and disclosure requirements. Additionally, we present ICAI’s strategic revision of the Forensic Accounting and Investigation Standards (FAIS), marking significant progress in global forensic practices. The article outlines key updates focused on technological integration, enhanced clarity, and cross-border applicability—underscoring ICAI’s ongoing commitment to professional excellence in a rapidly evolving landscape.

Key Amendments in Form 3CD for AY 2025-26

Introduction

The Central Board of Direct Taxes has introduced amendments through the Incometax (Eighth Amendment) Rules, 2025,via Notification No. 23/2025 dated March 28, 2025 to some clauses of Form 3CD (part of tax audit report). These amendments come into effect from 1 April 2025 and are discussed below.

Clause 12:

Addition of Section 44BBC

What? Introduced new section 44BBC. This section introduces a special presumptive taxation regime for non-resident entities involved in the operation of cruise ships. Under this provision, 20% of specified receipts related to passenger carriage will be deemed as taxable income.

Why? To bolster India’s cruise-shipping sector, the Finance Bill 2024 introduces a new section, 44BBC, establishes a presumptive taxation regime for non-resident cruise ship operator.

Nangia’s Take

• The CBDT issues circulars, notifications, and rules under the powers granted by the Income-tax Act to implement, administer, and clarify legislative provisions, thereby supporting compliance and effective enforcement.