Debate Sparked Over Proposed Income Tax Bill 2025 Revisions

A significant debate is emerging over India's proposed Income Tax Bill, 2025, as a Parliamentary panel urges crucial amendments. The Finance Ministry has been advised to permit late filing of TDS refunds without penalties. Moreover, the bill should exempt anonymous donations to religious-cum-charitable trusts from taxation.

BJP's Baijayant Panda, leading the Select Committee in the Lok Sabha, emphasized the necessity to rectify ambiguities threatening non-profit organisations. The committee argues that the current ambiguous language on taxing anonymous donations, particularly to mixed-objective NPOs, must be resolved.

Presently, Clause 337 suggests a 30% tax on such donations, but committee members call for retaining exemptions similar to those in Section 115BBC of the 1961 Act, recognizing religious-cum-charitable entities as inherently challenging to track donations through traditional means.

(With inputs from agencies.)