Note on Electronic Filing of Declaration for Specified Premises on GST Portal Pursuant to Notification No. 05/2025 – Central Tax (Rate) dated 16th January 2025, the facility for filing declarations for declaring hotel accommodation premises as “Specified Premises” has now been enabled electronically on the GST Portal.

These declarations may be filed by persons who are already registered under GST or are applying for new GST registration, subject to prescribed conditions.

1. Eligible Persons for Filing Declaration
The following persons may opt for and file the declaration:

Regular taxpayers (Active or Suspended) supplying hotel accommodation services, who intend to declare their premises as Specified Premises

Applicants applying for new GST registration intending to supply hotel accommodation services and declare premises as Specified Premises

The facility is NOT applicable to:

Composition taxpayers

TDS/TCS taxpayers

SEZ units or developers

Casual taxpayers

Taxpayers with cancelled GST registrations

2. Types of Declarations Available on GST Portal
The following annexures are currently enabled:

Annexure VII – Opt-In Declaration for Registered Persons
(For existing registered taxpayers opting to declare specified premises for a succeeding financial year)

Annexure VIII – Opt-In Declaration for Persons Applying for Registration
(For new registration applicants opting to declare specified premises from the effective date of registration)

Annexure IX (Opt-Out Declaration) will be made available separately in due course.

3. Timelines for Filing Declarations
A. Existing Registered Taxpayers – Annexure VII
Declaration can be filed for the subsequent financial year during the window:

1st January to 31st March of the preceding financial year

For FY 2026–27, Annexure VII can be filed from:

01.01.2026 to 31.03.2026

B. New Registration Applicants – Annexure VIII
Can be filed within 15 days from the date of generation of ARN of the registration application

Filing is permitted even before allotment of GSTIN, provided the application is not rejected

After expiry of 15 days, declaration can be filed only during the Annexure VII window (1st January to 31st March)

If the registration application is rejected, Annexure VIII cannot be filed, irrespective of the 15-day period

4. Procedure for Filing Declaration on GST Portal
Login to the GST Portal

Navigate to:
Services → Registration → Declaration for Specified Premises

Select:

Opt-In Declaration for Specified Premises, or

Download Annexure Filed

Select eligible premises, fill in required details, and submit using EVC

On successful submission, an ARN will be generated
5. Important Points for Compliance
A maximum of 10 premises can be selected in a single declaration

Separate declarations may be filed for additional premises; separate PDFs and reference numbers will be generated for each premise

If any premises are left out, Annexure VII may again be filed for such premises within the same financial year, during the eligible window

Suspended taxpayers are allowed to file declarations

Cancelled taxpayers are not permitted to file declarations

Once opted, the declaration will continue for subsequent financial years unless an opt-out declaration (Annexure IX) is filed within the prescribed time

6. Downloading of Filed Declarations
Filed Annexures (VII / VIII) can be downloaded from:
Services → Registration → Declaration for Specified Premises → Download

Separate reference numbers will be available for each declared premise

7. Email and SMS Confirmation
Upon successful filing, email and SMS confirmations will be sent to all authorised signatories registered on the GST Portal

Important Notes
For the first year (FY 2025–26), declarations were filed manually with the jurisdictional authority. However, since the online facility is now available, such taxpayers are required to file Annexure VII electronically again for FY 2026–27 during the period 01.01.2026 to 31.03.2026.

Taxpayers declaring Specified Premises for the first time are also required to file Annexure VII for FY 2026–27 during the same window period.

The Supreme Court of India recently delivered a significant ruling that underscores the sanctity of procedural safeguards in faceless tax assessments under Section 151A of the Income-tax Act, 1961. In the case of ADIT (International Taxation) 2, Hyderabad & Anr. vs. Deepanjan Roy, the apex court dismissed the Revenue’s Special Leave Petition (SLP), effectively upholding the Telangana High Court's verdict in favor of the assessee.

This development has far-reaching implications for both tax administration and taxpayers, particularly in the era of faceless assessments introduced under India’s digitized tax reform regime.

Case Snapshot

Case Title: ADIT (Intl. Taxation) 2, Hyderabad vs. Deepanjan Roy

SC Diary No.: 33956/2025

Date of SC Judgment: July 16, 2025

Bench: Justice J.B. Pardiwala & Justice R. Mahadevan

High Court: Telangana High Court

Original Order Challenged: WP No. 23573/2024 (dated August 29, 2024)

 

What Was the Issue?

The core issue revolved around procedural lapses allegedly committed by the Income Tax Department in conducting assessments or reassessments, likely in breach of mandates laid down under Section 151A, which governs time-bound and faceless tax proceedings.

The High Court reportedly ruled in favor of the assessee, Deepanjan Roy, possibly on the grounds that the assessment:

Violated timelines prescribed under the law, or

Did not comply with CBDT’s faceless assessment scheme, or

Denied natural justice or procedural fairness.

Supreme Court’s Verdict

In its short but clear order, the Supreme Court:

1. Condoned the delay in filing the SLP,
2. Allowed exemption from filing a certified copy of the impugned judgment,
3. Refused to interfere with the High Court’s order, stating there was “no good reason to interfere”, and
4. Dismissed the SLP, conclusively ending the Revenue’s challenge.

This dismissal, while brief, upholds the High Court’s decision and sends a strong message about the need for procedural rigor in tax assessments.

 Understanding Section 151A – The Backbone of the Case

Section 151A was introduced to institutionalize faceless tax proceedings and streamline the assessment process. It empowers the Central Board of Direct Taxes (CBDT) to implement schemes for:

• Eliminating personal interface between the Assessing Officer and the assessee,

Ensuring uniform application of tax laws,

Enhancing transparency and accountability, and

Facilitating efficient and time-bound disposal of tax matters.

Any departure from the protocols notified under this provision can render assessments procedurally defective, leading to judicial intervention.

 

Legal Significance

For Taxpayers:

• This ruling strengthens taxpayers’ rights to procedural fairness.
• Establishes that failure to comply with the faceless assessment protocols can lead to quashing of proceedings.
• Encourages assessees to vigilantly assert their rights in cases of defective notices or delayed action.

For Revenue Authorities:

• This judgment serves as a judicial reminder that even well-intentioned tax recovery must operate within the boundaries of due process.
• Reiterates the non-negotiable nature of procedural compliance under the faceless regime.
• Calls for robust internal checks within the Department to prevent lapses.

 Final Thoughts

This case marks a landmark moment in India’s evolving tax jurisprudence. It reinforces that while the government continues its push toward a technology-driven tax administration, strict adherence to legal procedures and taxpayers' rights remains paramount.

As more disputes emerge in the era of faceless assessments, this ruling will likely be cited as a precedent that procedural efficiency must walk hand-in-hand with fairness and legality.

 

Many income tax assessees are currently receiving emails from the Income Tax Department with the subject line or message:

“Rectification rights in your case for AY 2022-23 have been transferred to the Jurisdictional Assessing Officer on 16/07/2025 for the reason cited above. You are requested to contact the Jurisdictional Assessing Officer (JAO) for further action/query.”

This has raised concerns among taxpayers. Here’s what it means, and what you should do.

What does this mean?

The message indicates that any rectification request (for example under section 154 of the Income Tax Act) for your assessment year (AY) 2022-23 is now under the control of your Jurisdictional Assessing Officer (JAO) instead of being processed by the Centralized Processing Centre (CPC) online.

This usually happens in cases where:
Complexity requires manual intervention
There is pending verification or additional documents needed
The JAO needs to examine the case records for any corrections.

Immediate steps to follow

1. Check your personal details on the Income Tax Portal

• Login to the Income Tax e-filing portal.
• Go to Profile Settings ➔ My Profile.
• Ensure your personal email ID and mobile number are updated.
  (This ensures you continue to get important notifications.)

2. Monitor your email & SMS regularly

• Keep an eye on your inbox (and spam/junk folder) for any communication from the Income Tax Department or your JAO.
• Prompt response is crucial to avoid penalties or delays.

3. Download the notice / intimation

• Under e-Proceedings ➔ View Notices and Orders, see if there are any further communications.
• Download and save copies for your records.

4. Note details of your Jurisdictional Assessing Officer

• On the portal, under 'Know Your AO', find details like the office address, email ID, and phone number of your JAO.

5. Contact your JAO if required

• If the email advises you to contact your JAO, do so promptly.
• You may need to submit documents or explanations directly.

6. Consult your tax advisor or CA

• If unsure, take professional advice.
• Your Chartered Accountant can liaise with the JAO on your behalf to ensure the matter is resolved properly.

Important: Do not ignore such emails

These emails are system generated but action driven. Ignoring them might lead to:

Delay in processing refunds
Additional tax demands or penalties
 Unnecessary scrutiny notices

Final reminder

Update your personal email ID and mobile number on the portal.
Regularly check your emails & the income tax portal dashboard.
Be proactive in responding to your Jurisdictional Assessing Officer.

 

Clause-by-Clause Analysis of the Income Tax Bill, 2025

The Income Tax Bill, 2025 proposes a significant revamp of India's tax system by streamlining definitions, modernizing provisions, and aligning tax laws with the digital economy. Below is a detailed breakdown of each key clause.

1. General Provisions (Clauses 1-3)

Clause 1 – Short title, extent, and commencement.
Clause 2 – Defines various terms used in the legislation.
Clause 3 – Introduces the term "Tax Year", aligning it with the financial year.

 Key Change: Standardizes terminology for consistency.

2. Charge of Income Tax (Clauses 4-6)

Clause 4 – Specifies the charge of income tax for individuals and entities.
Clause 5 – Defines scope of total income for residents and non-residents.
Clause 6 – Defines residential status rules, with additional conditions for complex cases (e.g., multiple citizenships).

 Key Change: Simplifies taxability rules for different residency statuses.

3. Income Classification & Exemptions (Clauses 7-14)

Clause 7 – Covers income deemed to be received, such as employer contributions.
Clause 8 – Taxability of capital assets received by specified persons.
Clause 9 – Defines deemed income from business connections and sources like royalties, fees, dividends.
Clause 10 – Portuguese Civil Code: Income apportionment rules for Goa.
Clause 11 – Defines incomes not included in total taxable income.
Clause 12 – Exempts political parties & electoral trusts from taxation.
Clause 13 – Defines different heads of income.
Clause 14 – Disallows certain expenditures related to exempt incomes.

Key Change: Provides clarity on exemptions, deductions, and taxable categories.

4. Income from Salaries (Clauses 15-19)

 Clause 15 – Defines salary income, including arrears.
 Clause 16 – Taxability of wages, annuities, pensions, gratuities, perquisites.
 Clause 17 – Excludes certain benefits from taxable perquisites (e.g., work-related digital assets).
 Clause 18 – Defines "profits in lieu of salary", including compensations.
 Clause 19 – Allows salary deductions, including ₹75,000 standard deduction.

Key Change: Modernized to include digital compensations & increase deductions.

5. Income from House Property (Clauses 20-25)

 Clause 20 – Defines taxable house property income.
 Clause 21 – Method for computing annual value of a property.
 Clause 22 – Deductions for municipal taxes, loan interest (₹2 lakh cap remains).
 Clause 23 – Taxation of arrears/unrealized rent.
 Clause 24 – Co-owners taxed separately.

Key Change: Retains most existing provisions with simplified computation rules.

6. Income from Business & Profession (Clauses 26-66)

 Clause 26 – Defines business profits.
 Clause 27 – Rules for computing business income.
 Clause 28-29 – Deductions for rent, insurance, employee welfare.
 Clauses 30-32 – Covers bad debts, depreciation, capital expenses.
 Clause 33 – Defines tangible & intangible assets for depreciation.
 Clause 34-36 – Non-allowable deductions for tax evasion prevention.
 Clause 37-42 – Foreign exchange fluctuations, depreciation rules.
 Clause 43-46 – Scientific research & skill development deductions.
 Clause 47-50 – Agriculture & mineral exploration incentives.
 Clause 58 – Presumptive taxation for small businesses.
 Clause 59-65 – Non-resident taxation, digital business rules.

Key Change: Recognizes digital transactions, improves startup incentives.

7. Capital Gains Tax (Clauses 67-91)

 Clause 67 – Defines capital gains taxation.
 Clause 68-70 – Rules for share buybacks & liquidations.
 Clause 72-75 – Holding period changes for different assets.
 Clause 76-77 – New taxation rules for digital assets & market-linked debentures.
 Clause 83-86 – Exemptions for agricultural land, SEZ investments.
 Clause 91 – Fair market valuation for taxation.

Key Change: Includes crypto & digital asset taxation, updates reinvestment rules.

8. Income from Other Sources (Clauses 92-105)

 Clause 92 – Chargeability of non-classified income (dividends, lotteries, online gaming).
 Clause 93-94 – Allowable deductions & disallowed expenses.
 Clause 95-96 – Clubbing income to prevent tax avoidance.

Key Change: Includes e-sports, digital earnings, cryptocurrency winnings.

9. Anti-Tax Avoidance Measures (Clauses 178-184)

Clause 178-179 – General Anti-Avoidance Rule (GAAR) expansion.
 Clause 180-181 – Defines impermissible transactions.
 Clause 182-184 – Covers tax treaty abuse, shell companies.

Key Change: Stronger measures against tax evasion.

10. Administrative & Compliance Reforms (Clauses 263-389)

          Clause 263-267 – E-filing & faceless assessments.
          Clause 268-273 – Scrutiny, dispute resolution improvements.
          Clause 274-289 – Time limits for audits, reassessments.

Key Change: Automates assessments, reduces manual intervention.

 

11. Penalties & Prosecutions (Clauses 439-498)

 Clause 439-449 – Under-reporting penalties.
          Clause 450-465 – Penalties for false statements, non-filing.
          Clause 475-486 – Prosecution for tax evasion, fake accounts.

Key Change: Strengthens penalties for digital & corporate tax frauds.

Conclusion: Key Takeaways from the Income Tax Bill, 2025

Modernization – Includes digital assets, online businesses, & cryptocurrency taxation.
Simplification – Clearer definitions, deductions, & compliance rules.
Anti-evasion Strengthening – GAAR, digital tax audits, & enhanced scrutiny.
Automation – Faceless assessments, AI-driven processing, and e-filing mandates.

What’s next?

These changes will impact individuals, startups, digital businesses, & NRIs. Understanding the reforms will help optimize tax planning & compliance.

 

A Comprehensive Comparison of the Income Tax Bill, 2025 and the Income Tax Act, 1961

Introduction

India’s tax system is undergoing a significant transformation with the introduction of the Income Tax Bill, 2025. The bill aims to simplify tax laws, incorporate modern economic developments, and make tax compliance easier for individuals and businesses. This article provides a detailed comparison of the new provisions with the existing Income Tax Act, 1961, highlighting key changes, their rationale, and their impact on taxpayers.

 

1. Basis of Charge

Income Tax Act, 1961 (Section 4): Income tax is charged for a financial year at rates specified in the Finance Act.
Income Tax Bill, 2025 (Clause 4): Introduces the term "tax year", which aligns with the financial year but simplifies terminology.

Key Change:

Uniform terminology – Ensures consistency and clarity in tax computation.

2. Definition of Key Terms

The Income Tax Bill, 2025 introduces new definitions to align with technological and economic advancements:

Income Tax Act, 1961: Defined terms like "assessee," "assessment year," and "previous year" but lacked provisions for digital transactions.

Income Tax Bill, 2025:
Virtual Digital Asset (VDA) – Includes cryptocurrencies, NFTs, and other digital assets.
Electronic Mode – Recognizes digital payments, e-wallets, and online transactions.
Tax Year – Standardizes terminology for ease of understanding.

Impact:

Makes taxation more comprehensive by including digital transactions.
Reduces ambiguity in defining taxable income sources.

3. Scope of Total Income

Income Tax Act, 1961 (Sections 5 & 9): Residents are taxed on global income, while non-residents are taxed only on income accrued in India.
Income Tax Bill, 2025 (Clauses 5 & 9): Maintains similar rules but explicitly defines deemed income (e.g., payments to specified persons and accrual sources).

Key Change:

More clarity for non-residents and cross-border transactions.
Better-defined scope for taxation of foreign incomes.

4. Residence Criteria

Income Tax Act, 1961 (Section 6): A person is a tax resident if they stay in India for at least 182 days in a financial year (or 60 days in specific cases).
Income Tax Bill, 2025 (Clause 6):
Retains similar residency rules but adds special provisions for complex cases (e.g., individuals with multiple citizenships, business travelers).

Impact:

Addresses tax residency issues for global Indians and NRIs.
Reduces confusion regarding dual residency status.

5. Heads of Income & Taxation

The five existing heads of income remain, but with key enhancements:

Category	Income Tax Act, 1961	Income Tax Bill, 2025	Key Change
Salaries	Includes wages, annuities, commissions, perquisites	Similar structure, but excludes work-related digital assets from taxable perquisites	Exempts work-use laptops, software
House Property	Annual value of property taxed	Retains similar rules but defines digital rent payments	Recognizes digital transactions
Business/Profession	Covers business profits, deductions	Retains structure but modernizes digital business taxation	New incentives for startups, digital enterprises
Capital Gains	Taxes gains from asset sales	Expands scope to include cryptocurrencies, NFTs	New rules for digital assets
Other Sources	Covers lotteries, dividends, etc.	Retains scope but clarifies winnings from online gaming	Tax on e-sports winnings

6. Deductions & Exemptions

Income Tax Act, 1961: Includes deductions under Sections 80C to 80U, covering investments, donations, education expenses, and more.
Income Tax Bill, 2025: Consolidates deductions and introduces new exemptions, such as:
Startup incentives – 100% tax exemption for three consecutive years within the first 10 years.
Renewable energy incentives – Tax benefits for solar, wind, and green energy investments.
Digital economy deductions – Incentives for IT infrastructure & e-commerce businesses.

Impact:

Boosts entrepreneurship & innovation.
Encourages sustainable investments.

7. Capital Gains Taxation

Income Tax Act, 1961 (Sections 45-55A): Classifies gains as short-term or long-term based on holding periods.
Income Tax Bill, 2025 (Clauses 67-91):
Retains categorization but adds specific rules for virtual digital assets.
Adjusts holding periods for certain asset classes.
Clarifies reinvestment exemptions.

Impact:

Eliminates ambiguity in digital asset taxation.
Aligns taxation with modern investment practices.

8. Administrative & Compliance Reforms

Income Tax Act, 1961 (Sections 139-158): Covers tax audits, return filing, and assessments.
Income Tax Bill, 2025 (Clauses 263-389):
Faceless Assessments – Fully automated, AI-driven scrutiny process.
Mandatory E-filing – No paper-based submissions.
Reduced human intervention in tax assessments.

Impact:

Speeds up processing & reduces manual errors.
Enhances transparency & minimizes corruption.

9. Anti-Tax Avoidance Measures

Income Tax Act, 1961 (Sections 95-102): Contains General Anti-Avoidance Rules (GAAR).
Income Tax Bill, 2025 (Clauses 178-184):
Expands GAAR to cover digital transactions.
Introduces stricter rules for impermissible arrangements.

Impact:

Closes loopholes used for tax evasion.
Prevents artificial income shifting.

10. Impact on Non-Profit Organizations

Income Tax Act, 1961 (Sections 11-13): Provides tax exemptions for charities.
Income Tax Bill, 2025 (Clauses 332-355):
Defines stricter compliance measures for NGOs.
Prevents misuse of tax-exempt status for commercial activities.

Impact:

Ensures genuine charitable work benefits.
Reduces tax evasion through non-profits.

Conclusion

The Income Tax Bill, 2025 modernizes India’s tax framework, making it more efficient, transparent, and business-friendly. Key improvements include:
Inclusion of digital transactions & virtual assets.
Simplified tax administration & compliance.
Stronger anti-avoidance rules & enhanced transparency.

Stay Informed! These changes will impact individuals, businesses, and investors. Adapting to the new provisions will help optimize tax benefits and ensure compliance.

What are your thoughts on the new tax bill? Let us know in the comments!