Essential Compliance Updates and Deadlines for July to August 2025

As we move past the halfway mark of July and head into August 2025, individuals and businesses in India must remain vigilant about crucial compliance requirements and impending deadlines. Missing these can lead to penalties, interest charges, and legal complications. This article provides a concise yet comprehensive overview of the significant compliance requirements and their respective due dates specifically from July 21, 2025, until August 30, 2025.

Income Tax Updates and Deadlines

The most significant and recently confirmed update for a large segment of taxpayers is the extension of the Income Tax Return (ITR) filing deadline for Financial Year 2024-25 (Assessment Year 2025-26).

• Extended ITR Filing Deadline for Individuals/HUFs/AOPs/BOIs (Non-Audit Cases): The Central Board of Direct Taxes (CBDT) has officially extended the due date for filing ITRs for these categories from the original July 31, 2025, to September 15, 2025. This extension provides much-needed relief, especially considering the structural and content revisions in the ITR forms for AY 2025-26 and the time required for system readiness. This specifically includes salaried individuals, freelancers, and professionals whose accounts do not require a tax audit.

• ITR-2 and ITR-3 Utilities Live (Excel): As of July 11, 2025, the Income Tax Department released the excel utilities for ITR-2 and ITR-3 forms for AY 2025-26. While the online utilities are still awaited, taxpayers who need to file these forms can now proceed using the excel utilities.

• Changes in ITR-2 and ITR-3: These forms have undergone revisions. Notably, Schedule-Capital Gain now includes distinct sections to differentiate gains realized before and after July 23, 2024. Capital losses for share buybacks after October 1, 2024, are now permissible when the corresponding dividend income appears under other sources. The asset and liability disclosure requirement now applies only to those with a total income exceeding ₹1 crore.

• Challan-cum-statement (Form 26QB/26QC/26QD) for June 2025: If you've deducted TDS on property, rent, or certain other payments in June 2025, the challan-cum-statement is due by July 30, 2025.

• Quarterly TCS Certificate (Form 27D) for Q1 (April-June 2025): The due date for issuing Form 27D for Tax Collected at Source during the first quarter (April-June 2025) is July 30, 2025.

• Quarterly TDS Returns (Form 24Q/26Q/27Q) for Q1 (April-June 2025): The due date for filing quarterly TDS returns for the first quarter (April-June 2025) is July 31, 2025.

Goods and Services Tax (GST) Deadlines and Key Changes

The GST compliance landscape is seeing some significant procedural changes, particularly those that became effective from July 1, 2025, and will impact your August filings.

Key GST Return Filing Rule Changes (Effective from July 2025 tax period, impacting filings in August):

• GSTR-3B Non-Editable from July 2025 Tax Period: From the July 2025 tax period onwards (which will be filed in August 2025), GSTR-3B will become non-editable for Table-3 values that are auto-filled from GSTR-1, GSTR-1A, or the Invoice Furnishing Facility (IFF). This mandates precision and timely filing of GSTR-1, as manual corrections in GSTR-3B will no longer be allowed for these fields.

• Time-Barring of GST Returns after Three Years (Effective from August 1, 2025): A crucial change is the implementation of a rule that will prevent taxpayers from filing GST returns after three years from their original due date. This validation is now live on the GST portal. For example, any GSTR-1/IFF, GSTR-3B/M, GSTR-4, GSTR-6, GSTR-7, GSTR-8 from June 2022 or earlier, and GSTR-9/9C for FY 2020-21, will be barred from filing from August 1, 2025. It is critical to file any pending old returns before this date if they fall within this category.

• Second E-Way Bill Portal: A second e-way bill portal (https://ewaybill2.gst.gov.in) has been launched from July 1, 2025. This aims to reduce reliance on the existing single portal and enhance system resilience during peak hours.

Specific GST Due Dates (July 21 to August 30, 2025):

• July 2025 Due Dates (for June 2025 period):

  • GSTR-3B (Quarterly - QRMP Scheme, April-June 2025):

    • July 22, 2025 (for Group A states: Chhattisgarh, MP, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, and UTs of Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman & Nicobar Islands, and Lakshadweep).

    • July 24, 2025 (for Group B states: All other States + UTs not in Group A).

  • GST PMT-06 (Monthly Tax Deposit for QRMP Scheme, June 2025): July 25, 2025.

• August 2025 Due Dates (for July 2025 period):

  • GSTR-7 (TDS Return by Tax Deductors): August 10, 2025.

  • GSTR-8 (TCS Return by E-commerce Operators): August 10, 2025.

  • GSTR-1 (Monthly - Turnover > ₹5 Crore or Monthly Filers): August 11, 2025.

  • GSTR-1 IFF (Optional for QRMP Scheme, July 2025): August 13, 2025.

  • GSTR-5 (Non-Resident Taxable Persons): August 13, 2025.

  • GSTR-6 (Input Service Distributors): August 13, 2025.

  • GSTR-3B (Monthly): August 20, 2025. (Remember, this is the first month where auto-populated fields in Table 3 will be non-editable).

  • GSTR-5A (OIDAR Service Providers): August 20, 2025.

  • GST PMT-06 (Monthly Tax Deposit for QRMP Scheme, July 2025): August 25, 2025.

Other Important Financial and Regulatory Deadlines

• Provident Fund (PF) & ESI Contributions: Monthly contributions for the wage month of July 2025 are due by August 15, 2025.

• Professional Tax Payments: Due dates for Professional Tax vary by state. Given the current location of Ahmedabad, Gujarat, for Gujarat, Professional Tax for June 2025 was due by July 15, 2025. For July 2025, the due date is August 15, 2025. For Maharashtra, monthly professional tax returns are generally due by the last day of the month, so for July 2025, it would be August 31, 2025. Please confirm your specific state's rules.

• Continuing Impact of New Financial Rules from July 1, 2025:

  • Aadhaar Mandatory for New PAN Applications: Since July 1, 2025, all new PAN card applications require Aadhaar-based authentication.

  • Increased TDS Thresholds (Income Tax Act, 1961): From July 1, 2025, increased TDS thresholds apply for professionals (₹50,000), brokers/agents (₹20,000), and property owners (₹50,000 per month). This will affect deductions made in July, which are to be deposited by August 7, 2025, and reported in the Q2 TDS returns (due October 31, 2025).

  • TDS on payments to partners (Section 194T): Effective July 1, 2025, TDS @ 10% is applicable when aggregate annual payments to partners for salary, remuneration, commission, bonus, interest on loan, and interest on capital exceed the specified threshold.

  • Changes in Partner's Remuneration Limit: The limit for partner's remuneration has been increased with effect from July 1, 2025, with specific thresholds based on book profits.

Important Legislative Developments (Monsoon Session 2025)

The Monsoon Session of Parliament 2025, which commenced on July 21 and is scheduled to run until August 21, is a critical period for new legislation. While laws typically take time to be enacted, businesses should monitor the progress of key bills:

• The Income Tax Bill, 2025: This bill, which aims to replace the Income Tax Act, 1961, was introduced in February and was referred to a Select Committee. The Committee's report was adopted on July 16, 2025, and is expected to be tabled in the Lok Sabha on July 21, 2025. Its potential passage could lead to significant changes in the overall direct tax framework, including revised tax slabs and a default new tax regime.

• The Taxation Laws (Amendment) Bill, 2025: This bill is also slated for introduction and could contain further amendments to existing tax laws.

• The Manipur Goods and Services Tax (Amendment) Bill, 2025: To replace an Ordinance.

• The Jan Vishwas (Amendment of Provisions) Bill, 2025: Aims to decriminalize minor offenses across various laws.

Your Action Plan for Timely Compliance

To navigate this busy period successfully, it is highly recommended to:

1. Re-verify July Filings: Ensure all pending July due dates, especially for quarterly GST returns (QRMP scheme) and Q1 TDS/TCS returns, are met promptly to avoid late fees.

2. Prepare for August Deadlines: Begin gathering necessary documents and data for August filings. Given the GSTR-3B non-editable rule, ensure your GSTR-1 for July 2025 is meticulously prepared and filed accurately.

3. Review Old GST Returns: Critically, if you have any unfiled GST returns from before August 2022, address them immediately. The three-year time-barring rule from August 1, 2025, means these returns may become permanently unfileable.

4. Stay Updated on Legislative Progress: Keep an eye on the outcomes of the Monsoon Session of Parliament. Major tax law changes can emerge quickly.

5. Seek Professional Advice: For complex tax situations or any uncertainty, always consult a qualified tax advisor or financial consultant.

6. Leverage Technology: Utilize reliable accounting and compliance software to set reminders, automate processes, and ensure accuracy in your filings.

Proactive compliance is your best defense against penalties and disruptions. By staying informed and organized during this critical July-August period, you can ensure your financial obligations are met efficiently.