What is the amendment in the rule 114B of Income Tax Act?
Asked by: Prof. Olaf Pouros | Last update: February 19, 2026Score: 4.1/5 (75 votes)
Recent amendments (Oct 2023) to Income Tax Rule 114B primarily focus on PAN (Permanent Account Number) requirements for companies, firms, and foreign entities, especially regarding transactions in IFSC Banking Units (International Financial Services Centres), clarifying that companies/firms need PAN and relaxing Form 60 declarations for non-taxable foreign companies, while still generally mandating PAN for specified high-value transactions like large bank deposits, property sales, and vehicle purchases.
What is Section 114 B of Income Tax Act?
Further, the said Rule 114B also provides that every person is required to quote PAN for sale or purchase of any goods or services of any nature other than said 17 specified transactions, if the value of such transaction exceeds ₹2 Lakh per transaction.
What will change from 1st April 2025?
Changes from April 1, 2025, primarily involve significant US federal tax adjustments, including making TCJA provisions permanent with enhanced standard deductions and senior tax breaks (like a temporary $6k deduction), increased IRA contribution limits, and major adjustments to Tax Deducted at Source (TDS) thresholds in India, alongside new US bankruptcy dollar amounts and new trade tariffs under Executive Order 14257.
What is the FA 2025 amendment?
The Finance Act 2025 has amended Section 13(3) to provide that a person is to be treated as a substantial contributor under Section 13(3)(b) if his contribution during the previous year exceeds Rs. 1 lakh or his total contribution during the lifetime of the trust up to the end of previous year exceeds Rs. 10 lakhs.
What is the rule 114DB of income tax rules?
Rule 114DB is accordingly proposed to be inserted which states that the Indian concern shall furnish information in Form 49D electronically within a period of 90 days from end of financial year in which the transfer of the share or interest in foreign company or entity takes place.
New Income Tax Bill Passed| FM Explains 1961 Act Amendments, Exemptions, Standard Deduction
What is 144B of the Income Tax Act?
Section 144B in the Income Tax Act,1961 has been introduced in the Income Tax Act by National e-Assessment Scheme. It contains the structure of assessment, various assessment units, the complete flow of assessment through faceless mode, exceptional approval provisions and important definitions.
How to transfer assets tax-free?
There are several ways to transfer property to a child tax-free, including leaving it in a will, gifting it using lifetime and annual exclusions, selling it, or placing it in an irrevocable trust.
What is the new Amendment Act 2025?
The Repealing and Amending Act, 2025 steps in as a thoughtful editor of the accumulation. The Act removes 71 outdated Acts from 1886 to 2023, clearing obsolete, redundant and no longer relevant laws from the statute book.
What are the expected income tax changes in 2025?
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
What is Amendment 25 in simple terms?
The 25th Amendment simplifies presidential succession and disability by clarifying that the Vice President becomes President if the President dies, resigns, or is removed, and provides a process for temporarily transferring power if the President becomes unable to perform their duties, either voluntarily (President declares) or involuntarily (VP & Cabinet/Congress declare). It also outlines how to fill a vacant Vice Presidency, requiring a presidential nomination confirmed by Congress.
Is capital gains tax changed in 2025?
For 2025, US federal long-term capital gains tax rates remain 0%, 15%, and 20%, with updated income thresholds due to inflation, allowing more income to qualify for the 0% bracket. A key legislative development, the "One, Big, Beautiful Bill," signed in July 2025, maintains these rates but adds a "senior bonus" standard deduction for those 65+, potentially expanding 0% bracket use, while the 3.8% Net Investment Income Tax (NIIT) still applies to high earners.
What changes are coming in April 2025?
From 6 April 2025, Employers' National Insurance Contributions (NIC) will increase from 13.8% to 15%, while the threshold - the point at which employers begin to pay NI on an individual's salary - will be reduced from £9,100 to £5,000.
What is the second proviso rule 114B?
What is the second proviso rule 114B? Under the second proviso of Rule 114B, companies or firms involved in transactions specified under Rule 114B cannot submit Form 60 as an alternative to providing a PAN. This ensures that firms or companies must provide their PAN for specified transactions.
What is the time limit for 144b of Income Tax Act?
The response must be filed within 30 days from the date of receipt of the notice. Provision for Oral Hearing: The DRP is required to provide an opportunity for an oral hearing to the taxpayer, if requested. This hearing must be conducted within 15 days from the date of request.
How to avoid income tax on sale of shares?
Section 54EC provides that you do not have to pay LTCG tax on the sale of any long-term capital assets if the capital gains are invested in the designated government bonds and instruments. The bonds must be purchased within six months following the asset's sale. The maximum that can be invested in this manner is Rs.
What are the major changes in income tax 2025?
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits. What is the Rebate available under section 87A?
How to avoid capital gains in 2025?
A common way to defer or reduce your capital gains taxes is to use tax-advantaged accounts. Retirement accounts such as 401(k) plans, and individual retirement accounts offer tax-deferred investment. You don't pay income or capital gains taxes on assets while they remain in the account.
Will tax returns be bigger in 2026?
Yes, a significant tax refund surge is expected for the 2026 tax season (filed in 2027) due to President Trump's "One Big Beautiful Bill Act" (OBBBA), which made tax cuts retroactive to 2025, meaning many people underpaid throughout the year and will receive larger refunds now, potentially boosting consumer spending but also adding inflationary pressure, with some predicting record-high average refunds. Key factors include a larger standard deduction, enhanced child tax credits, and no tax on tips/overtime, benefiting families and seniors particularly.
What are the key changes in the 2025 laws?
Starting July 1, 2025, California courts will be required to provide ongoing notice of CARE Act proceedings to original petitioners (SB 42). In continuing the council's commitment to access to justice, AB 170 will extend remote proceedings in juvenile and civil cases.
How many amendments until 2025?
As of July 2025, there have been 106 amendments of the Constitution of India since it was first enacted in 1950.
What does the 22nd Amendment say?
No person shall be elected to the office of the President more than twice, and no person who has held the office of President, or acted as President, for more than two years of a term to which some other person was elected President shall be elected to the office of the President more than once.
What are the six worst assets to inherit?
The 6 worst assets to inherit often involve complexity, ongoing costs, or legal headaches, with common examples including Timeshares, Traditional IRAs (due to taxes), Guns (complex laws), Collectibles (valuation/selling effort), Vacation Homes/Family Property (family disputes/costs), and Businesses Without a Plan (risk of collapse). These assets create financial burdens, legal issues, or family conflict, making them problematic despite their potential monetary value.
How much money can you transfer to your bank without being taxed?
The majority of banks don't limit how much cash you can deposit, but all institutions have to report deposits of $10,000 or more to the federal government.
Can I sell my house to my son for $1 dollar?
Yes, you can absolutely sell a home below market value—and legally gift the difference. It's a legitimate and frequently used estate planning strategy that can support younger generations, avoid probate, reduce capital gains, and reduce estate tax exposure.