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Income Tax Bill 2025: A report was presented by the Selection Committee of the Lok Sabha on the Income Tax Bill 2025 in the House on Monday. The committee has recommended many major changes in it, which will replace the Income Tax Act, 1961, nearly six decades. The 4,575 -page report suggests individual taxpayers to claim the tax deduction (TDS) refund at the source by filing the income tax return after the due date without any fine. It has also been suggested to keep the anonymous donation given to religious and paramarth trusts tax free.
New income tax bill introduced
The select committee of the Lok Sabha, constituted by BJP MP Baijayant Panda, has also suggested extensive changes in the manner of management of non-profit organizations (NPOs).
The Select Committee says that the ambiguity should be overcome with the NPOs, especially for the organizations with charitable and charitable objectives with anonymity donation. The committee has opposed taxing on the ‘receipts’ of non-profit institutions (NPOs), as it is a violation of the principle of real income taxation under the Income Tax Act.
The Select Committee has recommended the re -implementation of the word ‘income’ in the suggestions, so that it can be ensured that only the net income of the NPO is taxed. Given that there is a ‘significant difference between anonymity donation’ to the registered NPO, the committee suggested that both religious and paramarth trust (trust) should be exempted on such donations.
30 percent tax on secret donation
In the Income Tax Bill, 2025 section 337, it is proposed to impose 30 percent tax on secret donations to all registered NPOs, in which only the NPOs established for religious purposes have been limited. This is completely different from the current section 115 BBC of the Income Tax Act, 1961. The current law has been given a more comprehensive exemption.
According to this, if a trust or institution is made entirely for religious and charitable works, then secret donations are not taxed. Significantly, such organizations usually receive contribution from traditional mediums (such as donation boxes), where it is impossible to identify the donor. “The committee strongly urges a provision to re -implement a provision in accordance with the explanation given in the BBC,” said in the report of the Parliamentary Committee.
The 31 -member Committee of the Lok Sabha, which investigated the new Income Tax Bill, 2025, also suggested that taxpayers should be allowed to claim TDS refund even after paying any punitive fee even after the last date of filing ITR. Regarding the withdrawal of TDS refund claims of persons who do not usually need to file tax returns, the committee suggested that the Income Tax Bill should remove the provision in the Income Tax Bill, which makes it mandatory for the taxpay to file income tax returns within the fixed date.
