On September 19, 2025, the Central Board of Direct Taxes (CBDT) released Circular No. 13/2025, offering assistance to taxpayers facing issues due to changes made in their income tax returns. This circular aims to help those who may be struggling with extra demands or complications resulting from these adjustments.
U/s 115BAC(1A) of the Income-tax Act, 1961, the problem emerges and controls the new tax regime. Incomes leviable at special rates under Chapter XII are not included when evaluating liability, and rebates u/s 87A apply merely to regular incomes in this section.
In certain processed returns, the rebate u/s 87A was incorrectly permitted on the incomes taxed at special rates. As the Centralised Processing Centre (CPC) has begun corrections, it results in fresh demands on taxpayers.
CBDT to facilitate compliance has invoked its powers u/s 119 to waive interest liable to be paid u/s 220(2), provided taxpayers settle such demands by December 31, 2025.
Read CBDT Circular No. 13/2025
