New Delhi: A parliamentary panel, headed by BJP leader Baijayant Panda, has favou-red continuing tax exemption on anonymous donations ma-de to religious-cum-charitab-le trusts in the new Income Tax Bill, saying any removal would have an adverse impact on not-for-profit groups.
The 31-member select committee of the Lok Sabha that examined the new Inco-me Tax Bill, 2025, also sugges ted allowing taxpayers to cla-im TDS refund even after the ITR filing due date without pa-ying any penal charges. The committee has recommended changes in the Income Tax Bill, 2025, which will replace
the six-decade-old Income Tax Act, 1961.
The 4,575 page report, which was tabled in the Lok Sabha on Monday, also made suggestions for sweeping changes in the way the new In-come Tax Bill, 2025, was to tre-at income of non-profit orga-nisations (NPOs), while com-mending tax department’s move of replacing the dual concepts of “previous year” and “assessment year” with a single, unified term: “tax ye-ar.” “The adoption of a single, consistent ‘tax year’ streamli nes tax period references throughout the legislation, making the law more acces-sible and easier to under
stand,” the report said.
With regard to NPOs, the government in the new bill has exempted from tax anony-mous donations received by purely religious trusts. Howe-ver, such donations received by a religious trust that may also have other charitable functions, like running hospi-tals, and educational institu-tions, will be taxed as per law.
Clause 337 of the IT Bill, 2025, proposed a flat 30% tax on anonymous donations re-ceived by all registered NPOs, with exemption extended to those established wholly for religious purposes a “signi-ficant divergence” from the existing I-T Act. AGENCIES
