Monthly Tax Updates: June 2025
🧾 Income Tax Updates
📌 Advance Tax Payment Deadline for FY 2025-26 [CRITICAL]
The due date for the first installment of advance tax for the Financial Year 2025-26 (Assessment Year 2026-27) was June 15, 2025[5]. All taxpayers liable for advance tax were required to pay 15% of their estimated tax liability by this date[5].
💡 Practical Insight: Failure to pay the correct amount of advance tax on time attracts interest under sections 234B and 234C of the Income Tax Act. It's crucial for businesses and professionals to accurately estimate their annual income and pay the installment to avoid interest liability.
📌 Due Date Preponed for Forms 64A & 64E
The Central Board of Direct Taxes (CBDT) has preponed the due date for filing Form 64A (statement of income distributed by a business trust) and Form 64E (statement of income paid or credited by a securitisation trust) for AY 2025-26 to June 15, 2025[1]. This is a significant change from the previous deadline of November 30th[1].
💡 Practical Insight: Business trusts and securitisation trusts must take immediate note of this advanced deadline. This change requires them to finalize their income distribution statements much earlier in the financial year to ensure timely compliance.
🏢 GST Law & Compliance
🚨 GSTN Advisory on Time-Barring of Return Filing
The GST Network issued an advisory on June 7, 2025, implementing the rule that blocks the filing of GST returns if they are more than three years old from the original due date[18]. This is a critical functionality change to enforce timely compliance.
💡 Practical Insight: This is a hard stop for non-compliant taxpayers. Businesses with pending returns older than three years will no longer be able to file them. This reinforces the need for regular and timely GST compliance to avoid being locked out of the system.
⚖️ SC Allows ECL for Pre-Deposit in GST Appeals
In a major relief for taxpayers, the Supreme Court ruled that the mandatory pre-deposit required for filing GST appeals can be paid using the amount available in the Electronic Credit Ledger (ECL)[14]. This settles a long-standing debate and provides significant liquidity benefits to businesses under litigation[14].
💡 Practical Insight: This landmark clarification means businesses do not need to arrange for cash to pay the pre-deposit amount (typically 10% of the disputed tax). They can now utilize their accumulated Input Tax Credit (ITC) for this purpose, freeing up working capital.
🗂️ Compliance & Portal Updates
📅 Key Compliance Deadlines in June 2025 [CRITICAL]
June 2025 was a month with several critical compliance due dates across GST, ROC, and Labour Laws[10]:
- GST: Filing of GSTR-1 (June 11), GSTR-7/8 (June 10), and GSTR-3B (June 20) for the month of May 2025[10].
- ROC Filings: The annual return of deposits (Form DPT-3) for FY 2024-25 was due on June 30, 2025[10].
- Labour Law: EPF & ESI contributions and return filings for May 2025 were due by June 15, 2025[10].
- DGFT: Mandatory annual updation/validation of the Import Export Code (IEC) on the DGFT portal had to be completed by June 30, 2025[10].
💡 Practical Insight: Missing these deadlines can lead to heavy penalties, interest, and procedural hurdles. For instance, an inactive IEC can halt all import-export activities. Businesses should use a compliance calendar to track these dates meticulously.
🏛️ Recent Important Tax Judgments
🧑⚖️ Landmark Supreme Court Rulings on Income Tax (June 2025)
The Supreme Court delivered several crucial judgments in June 2025 impacting various aspects of income tax law[8]. Key cases include:
- K. Krishnamurthy v. DCIT: Clarified the conditions for levying penalties under Section 271AAA for undisclosed income found during a search operation[8].
- Vinubhai Mohanlal Dobaria v. CCIT: Discussed the initiation of prosecution under Section 276CC for willful failure to file an Income Tax Return[8].
- CIT v. Kanakia Spaces (P) Ltd.: Examined the scope and powers of the Settlement Commission under Chapter 19A of the Income Tax Act[8].
💡 Practical Insight: These rulings provide significant legal clarity on contentious issues like penalties, prosecution, and settlement proceedings. Tax professionals must analyze these judgments to refine their litigation strategies and advise clients on compliance risks. 👉 Consult your CA immediately if these cases apply to your situation.
Post a Comment