Volume #17 | IssueNo. 314/2025 | July 2025
Does the mind have a gender ?
Coming to you with a new cover story !
300+ gold medals. 25+ silver medals. 5 bronze medals at national and international wheelchair sporting events. + Padmashri, Arjuna Award, Rajyotsava award and many many more. This is the medals and recognitions haul to the credit of Paralympian Dr. Malathi K Holla, whom I am closely associated with.
“As I grew up, I realised that you need legs to run, and wings to fly. I had neither. But I was confident that one day, I would need neither….” says Malathi in her inspiring biography “A different spirit” by Dr. Anantha Krishnan M.
What has made her stand out despite her polio-stricken legs ? It seems her indomitable spirit. Her strong mind. Her favourite remark is “My legs are paralysed but my mind is not. I am hale and hearty”. When asked how does she feel to be recognised as one of India’s greatest woman para-athletes, she shoots back “I am an athlete. Period. Gender is not relevant to me”.
It is all in the mind. Does the mind have a gender ? No, if you read about a specific race that Malathi ran way back in 1981 in Ahmedabad. She entered the track event only to be told that since there were no woman competitors in the category, she must withdraw. Disappointed she was as she had dreamt of winning and bringing laurels to Syndicate Bank, that she was employed with back then. Organisers tried convincing her to withdraw since atleast 3 woman competitors were required. Not one to take NO for an answer, gutsy young Malathi persisted that she will not go back without participating. Only option offered to her was to compete alongside the men. She said YES and found her name added in the men’s 100 metre race. As she readied herself to start, she noticed that she was competing with war veterans and other well-built sportsmen who were towering over her. She admits she was petrified for sometime but soon gathered courage and decided to give it a go in the name of God. Her only prayer was that there should be atleast one person trailing behind her and she should not be the last to reach the finishing line. She wheeled as fast as she could and lo and behold, she won the race AGAINST THE MEN ! Even now when she narrates this amazing track event, I can see the thrill in her face and the pride in her voice. She has many such victories to share that showcases her defiant spirit. Overcoming intense physical challenges, Malathi has over the years transformed not only herself but also rewritten the rules for track events, awards, automobile sector innovation (she got Maruti to design a disabled-friendly car) and lives of several wheel-chair bound persons. The mind is truly ungendered !
As you remain inspired how a woman has ‘wheeled’ her way to succeed in life and impact so many others, do span your attention on the other important contents of this 314th Samhita – a lucid, comprehensive article on taxation of foreign assets and income of Resident Indians, contributed by our long-time well-wisher and professional speaker, Mr. Guruprasad along with contributions from the regulators – MCA, SEBI, IBBI, IT, GST etc. For any previous issues of Samhita and the readers’ feedback, please visit http://www.sharadasc.com/resource-center/.
Happy Reading
S.C. Sharada
www.linkedin.com
Disclosure of Foreign Assets and Income by Resident Indians
‘Ignorance of law is not an excuse’
Resident and Ordinarily Resident Indians as per the provisions of the Income Tax Act,1961 are those who have stayed in India for more than 182 days in the previous year. They are liable to pay income tax not only on the income earned in India, but also on the global income earned.
Taxmen across the world trust that taxpayers in their country have truthfully disclosed all their foreign assets and the global income thereof in their Personal Income Tax Returns and have paid the entire tax.
When there is a breach of this trust by taxpayers and payment of income tax is evaded, taxmen across the world have no choice but to tighten their taxation rules. Taxmen exchange information on the various assets held and the income earned by the taxpayers in their country with the taxmen of the taxpayers’ resident country.
Reporting framework
Common Reporting Standard (CRS) of Organisation of Economic Cooperation and Development (OECD) and Foreign Account Tax Compliance Act (FATCA) of USA are the global reporting frameworks. India joined the CRS on June 3, 2015, both as a G-20 member and as an early adopter of the standard. India and the United States signed a FATCA IGA on July 9, 2015……click on the link below to read more.
(Open Article on Disclosure of Foreign Assets and Income by Resident Indians)
Regulatory Updates
MCA Updates
MCA vide notifications between June 30, 2025 and July 07, 2025 has notified changes to few more forms. These changes have been notified as part of migration of forms to V3 portal. The changes have been summarized below. For changes to other forms recently migrated to V3, please refer our previous edition of Samhita.
Sl. No | Notification | Date of Notification | Form | Changes Introduced | Effective Date |
1. | The Companies (Restriction on number of layers) Amendment Rules, 2025 | June 27, 2025 | CR-1- Return regarding number of layers |
| July 14, 2025 |
2. | The Companies (Listing of equity shares in permissible jurisdictions) Amendment Rules, 2025 | July 03, 2025 | LEAP-1-Form for submission of Prospectus with the Registrar (Listing of equity shares in permissible jurisdictions-1) |
| July 03, 2025 |
3. | The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2025 | July 07, 2025 | CSR-1- Registration of Entities for undertaking CSR |
| July 14, 2025 |
4. | June 27, 2025 | INC 22A- ACTIVE (Active Company Tagging Identities and Verification) |
| July 14, 2025 |
The MCA has issued an Office Memorandum dated June 24, 2025, outlining key measures to streamline the incorporation process for IFSC companies. Highlights of the recommendations are given below:
- “Priority processing” of the e-forms for quicker incorporation
- No objection to be raised by CRC for industrial code – 65, 66 or 67
- NOC from parent company if the only distinction in the name is the addition of the word “IFSC”
- Clarification on CIN entry in the form and nominee shareholder requirements for wholly owned subsidiaries and related compliance u/s 89 of the Companies Act, 2013
- Extended timeframe for registered office verification (60 days instead of 30 days for non-IFSC companies)
- Acceptance of provisional space allotment letters and NOCs from Co-developers instead of rent receipts for Form INC-22 filings
- Requirement of attachment of photograph of registered office continues
- PIN code issue in Form INC-22 rectified
These measures address specific incorporation challenges faced by IFSC companies while maintaining necessary regulatory compliance.
As per rule 5(4A) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, notified on August 20, 2019, the companies which have transferred any amount referred to in section 205C(2) of the Companies Act, 1956 to IEPF or Central Government, but have not filed the statement or have filed the statement in any format other than in excel template, or companies which filed Form IEPF-1 under clauses (a) to (n) of sub-section (2) of Section 125 of the Companies Act, 2013 in any format other than the mandated Excel template, were directed to submit details in Form No. IEPF-1A along with specified excel template within 60 days of the notification.
Despite of the above, it has been observed that over 3,000 companies, including 1,758 listed and 1,103 unlisted companies, have not filed Form IEPF-1A or have submitted in non-compliant formats.
In view of the above, MCA vide public notice dated July 31, 2025 has directed companies concerned to file Form IEPF-1A in the prescribed Excel format by August 30, 2025. Failure to comply shall attract regulatory action under the provisions of the Companies Act, 2013.
SEBI Updates
A Cybersecurity and Cyber Resilience Framework (CSCRF) was issued by SEBI in August 2024 for SEBI Regulated Entities (REs). Pursuant to representations made, SEBI vide circular dated June 30, 2025 has extended the timeline for adoption and implementation of Cybersecurity and Cyber Resilience Framework until 31st August 2025. Extension applies to all REs except Market Infrastructure Institutions (MIIs), KYC Registration Agencies (KRAs), and Qualified Registrars to an Issue and Share Transfer Agents (QRTAs).
In order to facilitate ease of investing for investors and to secure the rights of investors in the securities which were purchased by them, SEBI vide circular dated July 02, 2025 has opened a special window for re-lodgement of transfer deeds. Circular highlights the following:
- Special window opened for a period of six months i.e. from July 07, 2025 to January 06, 2026
- Available only for re-lodgement of transfer deeds lodged before April 01, 2019 that were rejected/returned/not attended due to deficiencies in the documents/process/otherwise
- Re-lodged securities will be issued only in demat mode
- Listed companies, RTAs and Stock Exchanges must publicize this special window bi-monthly
- RTAs/listed companies shall have focussed team to attend the requests and provide monthly reports on publicity efforts and shares re-lodged for transfer cum demat
IFSCA Update
FSCA has issued a circular dated July 1, 2025, providing guidance to Finance Companies and Finance Units on the process for submitting requests that require prior approval or intimation to the Authority.
The circular outlines below six categories of requests for Regulated Entities (REs) with details of division of IFSCA to which request should be submitted:
- Change in management/control
- Change of name of RE
- Broad banding of activities
- Voluntary surrender of registration
- Pre-facto waiver/exemption from regulations/guidelines/circulars
- Any other requests
Annexure 1 provides a comprehensive guidance note detailing the documentation requirements for each type of request, including formal letters, board resolutions, other supporting documents and applicable processing fees.
The circular also includes below two appendices:
- Information on the Management (IOM) forms
- Form pertaining to request of withdrawal of Certificate of Registration (Voluntary Surrender of CoR)
These measures aim to enhance regulatory consistency and facilitate ease of doing business for entities operating in IFSC. The provisions of the Circular shall come into force with immediate effect.
Others
Vide public notice dated June 24, 2025 the Ministry of Home Affairs has extended the validity of FCRA registration certificates for the following entities:
- Whose validity was extended till June 30, 2025 in terms of the Public Notice dated March 28, 2025 and whose renewal application is pending, will stand extended till September 30, 2025 or till the date of disposal of renewal application, whichever is earlier.
- Whose 5 years validity period is expiring during July 01, 2025 to September 30, 2025 and who have applied/will apply for renewal before expiry of 5 years validity period, will stand extended up to September 30, 2025 or till the date of disposal of renewal application, whichever is earlier.
(Open MHA Public Notice dt June 24, 2025)
ESG Updates
India has reached a major climate milestone by achieving 50% of its installed electricity capacity from non-fossil fuel sources—five years ahead of its 2030 target under the Paris Agreement. This progress highlights strong policy initiatives, including schemes like PM-KUSUM and PM Surya Ghar, which have empowered farmers, promoted rooftop solar, and boosted rural livelihoods.
Renewable energy sources such as solar, wind, and bioenergy are driving this shift, supported by low tariffs, employment generation, and environmental benefits. India’s leadership in clean energy is globally significant, especially given its low per capita emissions.
Looking ahead, India aims to double clean energy access, enhance storage systems, integrate AI and digital technologies, and secure its energy infrastructure. With a target of 500 GW non-fossil capacity by 2030 and net-zero by 2070, India’s journey combines growth, sustainability, and innovation.
In July 2025, the SBTi launched its first Financial Institutions Net-Zero Standard, providing a science-based framework to help financial institutions align their activities with net-zero emissions by 2050. Applicable across various financial services and geographies, the Standard supports institutions in setting credible targets and using their influence to drive real-world climate action.
The Standard covers in-scope financial activities—lending, asset owner investing, asset manager investing, insurance underwriting, and capital market activities—that financial institutions worldwide can use to influence real economy actors.
The United Nations Global Compact has launched a free self-assessment tool to help businesses identify and address workplace discrimination and promote equality and inclusion. The Non-Discrimination and Equality Analysis Tool allows companies to confidentially evaluate their practices across 13 key performance areas, pinpoint gaps, and integrate inclusive policies.
This initiative supports the UN Sustainable Development Goals and emphasizes that workplace equality is both a human right and a business advantage—linked to improved innovation, employee satisfaction, and financial performance. While the tool focuses on internal workplace practices, it does not extend to product or service design or delivery.
Accessible through the UN Global Compact’s platforms, this tool aligns with global human rights standards and aims to guide over 20,000 companies in 85+ countries toward more inclusive corporate cultures.
IBBI Update
IBBI vide notification dated July 4, 2025 has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2025.
Regulation 36 of CIRP Regulations, 2015 which pertains to Information Memorandum, has undergone two key changes, highlights of which are mentioned below:
Regulation 36(1) has been amended to provide that the Resolution Professional (RP) shall submit Information Memorandum to each member of the committee of creditors (COC) on or before the 95th day from the insolvency commencement date, and its subsequent updates thereof. The addition of the phrase “its subsequent updates thereof” ensures that all future revisions to the Information Memorandum are also submitted to the COC within the prescribed timelines, not exceeding the original timeline of 95 days from the insolvency commencement date. This ensures that COC receives updated information and increases accountability and compliance on part the RP.
A new sub-regulation (ha) has been inserted after the existing regulation 36(2)(h) to stipulate that the Information Memorandum should now include details of all identified avoidance transactions, if any, or any instances of fraudulent or wrongful trading under Chapter III and IV of Part II of the Code, respectively, and subsequent filings before Adjudicating Authority as made under Regulation 35A(3A).
Additionally, Regulation 38 of the CIRP Regulations, 2015 which deals with mandatory contents of a resolution plan, has been amended to insert a new sub-regulation (2A) to lay down that a resolution plan shall not provide for any assignment of any avoidance transactions under Chapter III or fraudulent or wrongful trading under Chapter VI of Part II of the Code unless:
- The same was disclosed in the Information Memorandum and
- The same was intimated to all the prospective resolution applicants before the last date for submission of resolution plans.
However, this regulation shall not apply retrospectively and shall not be applicable to resolution plans submitted under Regulation 30(6).
The aforesaid amendments enhance transparency and facilitate fair trade deals.
Tax Updates
CBDT vide notification dt July 01, 2025 has specified that the cost inflation index for the Financial Year 2025-26 shall be 376.
CBDT vide Circular dated July 21, 2025 has relaxed TDS/TCS applicable on inoperative PANs due to unlinked Aadhaar. Previously, inoperative PANs triggered higher TDS/TCS rates under Sections 206AA and 206CC of the Income-tax Act, 1961, leading to notices for short-deduction/collection. To alleviate this, the CBDT has introduced relief measures as follows:
For payments/credits from April 1, 2024, to July 31, 2025, no higher TDS/TCS rates apply if the PAN is linked with Aadhaar by September 30, 2025.
For payments/credits on or after August 1, 2025, relief applies if the PAN becomes operative within two months from the end of the payment/credit month.
In these cases, standard TDS/TCS rates under the Act will apply.
GST Updates
On April 11, 2025, it was announced on the GST portal that, starting from July 2025 tax period, inter-State supplies auto-populated in Table 3.2 of GSTR-3B will be non-editable, requiring taxpayers to file GSTR-3B with system-generated values. Initially deferred due to taxpayer difficulties, this functionality will now be implemented. GSTN has issued an advisory in this regard on July 19, 2025.
Amendments to Table 3.2 values can be made via GSTR-1A or subsequent GSTR-1/IFF filings. To ensure compliance, taxpayers must accurately report inter-State supplies in GSTR-1, GSTR-1A, or IFF for correct auto-population in Table 3.2. FAQs for the same has been provided in Advisory.
Due to a system glitch, Form GSTR-3A notices for non-filing of Form GSTR-4 under CGST Act were mistakenly issued to taxpayers with registrations cancelled before FY 2024–25. The technical team is addressing this issue to prevent recurrence. Affected taxpayers who filed returns or had cancelled registrations need not take action and can ignore these notices.
Statutory Compliance Calendar
July 2025
Quote of the day
"Doing is very good, but that comes from thinking. … Fill the brain, therefore, with high thoughts, highest ideals; place them day and night before you, and out of that will come great work." - Vivekananda, Thoughts of Power
Disclaimer: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.