The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has introduced new amendments to the Income-tax Rules, 1962, through a new notification on February 24, 2025.
These amendments, known as the Income-tax (Fifth Amendment) Rules, 2025, have revised compliance deadlines and procedural updates for business trusts, securitisation trusts, and investment funds.
Additionally, with new amendments references to fixed tax rates have been removed from certain tax forms, allowing flexibility for future tax rate adjustments without needing to further change the forms.
Compliance deadlines for business trusts (REITs & InvITs)
The amendment revises Rule 12CA of the Income Tax Rules 1962, which governs income distribution reporting by business trusts such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The key changes under the Rule 12CA relate to revision of dates of filing the statement of income distribution to tax authorities (Form 64A) and providing the statement of income distribution to the unit holders (Form 64B).
Business trusts must now submit Form 64A to tax authorities by June 15 of the financial year following the previous year during which such income was distributed, instead of the previous deadline of November 30.
Meanwhile, the deadline for providing the statement of income distribution to unit holders (Form 64B) remained unchanged i.e. June 30 of the financial year following the distribution. The rules also highlighted that Form 64B must be generated and downloaded from a web portal designated by the Principal Director General of Income-tax (Systems).
Moreover, the role of the Principal Director General of Income-tax (Systems) has been enhanced with officials now tasked with managing digital storage, retrieval, and archival of income statements, while specifying the procedures and security protocols for filing Form 64A.
Revised reporting process for securitisation trusts
Similar updates have been made to Rule 12CC clarifying procedural aspects and modify deadlines, which applies to securitisation trusts— a financial vehicle, usually structured as a trust, that is used to pool and package a group of assets (like loans) from a lender and then sell those assets to investors as securities.
The new rules say that securitisation trusts must now submit Form 64E to tax authorities by June 15 (earlier November 30), and investors must receive Form 64F by June 30 (unchanged).
Moreover, here too, the Principal Director General of Income-tax (Systems) is responsible for managing the digital filing infrastructure, security protocols, and retrieval mechanisms, ensuring smooth compliance for both tax authorities and investors.
Removal of fixed tax rate references from forms
Another notable change is the removal of specific tax rate references from various tax reporting forms, including Form 10IH under Appendix 2, and Part A1 to A3 of Annexure 1.
Previously, these forms explicitly mentioned fixed tax rates such as for the long-term and short-term capital gains, but these references have now been removed.
This adjustment allows the government to change tax rates without requiring amendments to the forms themselves, making future tax policy adjustments more flexible and efficient.
Furthermore, the new rules have also released updated versions of Forms 64A, 64B, 64C, 64D, 64E, and 64F with revised structures and electronic filing requirements.
Digital compliance and security measures
The amendments also reinforced the role of the Principal Director General of Income-tax (Systems) in managing the digital filing and verifying tax statements, while ensuring that proper security measures, archival protocols, and retrieval mechanisms are in place.
Who does this impact?
The amendments impact business trusts (REITs & InvITs), which must meet new reporting deadlines for Forms 64A and 64B, and securitisation trusts, which must comply with updated timelines for Forms 64E and 64F to ensure timely investor documentation.
Investment funds must adopt revised reporting formats, while investors and unit holders will benefit from faster access to tax documents and greater transparency in income distribution reporting.
