Income-tax (21st Amendment) Rules, 2025
Income-tax (21st Amendment) Rules, 2025 – Form 7 Updated to Include Block Period
This amendment is made by exercising the powers under section 295 read with section 156 of the Income-tax Act, 1961.
1. Name and Enforcement
- The new rules will be called the Income-tax (Twenty-First Amendment) Rules, 2025.
- They will come into effect from 1st September, 2025.
2. Amendment in Form No. 7 (Appendix-II)
The change has been made specifically in Form No. 7, which is used for the purpose of issuing a Notice of Demand under section 156 of the Income-tax Act.
Previous Wording:
In Paragraph 1 of Form 7, the text earlier used the phrase:
“assessment year …… a sum”
New Wording (after amendment):
This has now been substituted with:
“assessment year ……… or the block period ………., as the case may be, a sum”
Meaning of the Amendment
- Earlier, Form No. 7 referred only to “assessment year”, which meant the demand notice could be issued only in respect of a particular assessment year.
- After the amendment, the form now covers both:
- Assessment year (in case of regular assessment), and
- Block period (in case of search and seizure assessments under Chapter XIV-B).
This change ensures that the demand notice format is aligned with situations where tax liability arises for an entire block of years (for example, after search assessments), and not just a single year.
✅ In summary: From 1st September 2025, Form No. 7 under Appendix-II of the Income-tax Rules will allow demand notices to be issued for both individual assessment years as well as block periods. This is a procedural clarity measure by CBDT to make the demand notice format legally accurate and comprehensive.
Also Read:
- Recommendations of the 55th Meeting of the GST Council
- Changes in GST and Income Tax during the Financial Year 2024-25
- TDS and TCS provisions applicable from April 1, 2025
- Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals
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