Notification no. 23/2025, 28-03-2025
The Central Board of Direct Taxes (CBDT) released the Income-tax (Eighth Amendment) Rules, 2025, on March 28, 2025, prescribing changes to Form No. 3CD. The changes shall come into force on 01-04-2025.
The changes introduced in Forms are consequential of amendments proposed by the Finance (No. 2) Act 2024, such as the insertion of reference of Section 44BBC in Clause 12, insertion of ‘expenditure to settle proceedings for contravention of notified laws’ in Clause 21, etc. Other changes introduced in the form are as follows:
1. Introduction of Clause 36B for Buyback Receipts
A new Clause 36B has been added to Form 3CD. This addition mandates the disclosure of the buyback receipts of shares under section 2(22)(f) of the Income-tax Act, 1961. It seeks the following details:
(a) Amount received for buyback of shares
(b) Cost of acquisition of shares bought back
2. Introduction of Code in Clause 31
The Board has introduced a new code system for transactions in Clause 31, which deals with loans, deposits and repayments. The code categorises the nature of amounts/receipts/repayments involved in loans, deposits, and specified advances.
Examples of codes include:
- Cash payment (Code A)
- Cash receipt (Code B)
- Payment through non-account payee cheques (Code C)
- Transfer of assets (Code E), etc.
3. Omission of Clauses 28 and 29
Clauses 28 and 29 have been omitted from the Form 3CD. These clauses were used to report disclosures related to the receipt of the unlisted company for inadequate consideration under Section 56(2)(viia) & reporting of the receipt of consideration exceeding the fair market value under Section 56(2)(viib).
4. Modifications to Clause 22 – Inadmissibility under MSMED Act
Clause 22 of Form 3CD requires reporting of the amount of interest inadmissible under Section 23 of MSMED Act, 2006 or any other amount not allowable under section 43B(h) of the Income-tax Act, 1961.
Clause 22 now includes a bifurcation of amounts disallowed under Section 43B(h). It seeks the reporting in the following manner:
(a) Total amount payable to a micro or small enterprise under Section 15 of the MSMED Act.
(b) Amount paid within the time limit under Section 15.
(c) Amount not paid within the time limit and inadmissible for the previous year.
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