Parliamentary Panel Advocates IT Bill Revisions for Taxpayer Relief and NPO Exemptions
A parliamentary panel suggested tweaks to the Income Tax Bill, 2025, advocating for taxpayer relief and tax exemptions for NPOs. The changes aim to address issues of TDS refunds, anonymous donations, and redefine NPO income taxation, while simplifying tax laws and rectifying potential adverse impacts on the nonprofit sector.
- Country:
- India
A parliamentary panel urged modifications to the Income Tax Bill, 2025, aiming to provide tax relief for individuals and exemptions for Non-Profit Organisations (NPOs). The recommendations, tabled in the Lok Sabha, address key issues such as TDS refund policies and the taxation of anonymous donations.
Led by BJP Member Baijayant Panda, the committee advocated for the removal of penalties for late TDS refund claims. It also called for exemptions for religious and charitable trusts receiving anonymous donations, criticizing the proposed flat 30% tax for diverging from existing laws.
The suggested revisions aim to simplify tax laws while protecting the interests of NPOs, ensuring that only net income is taxed. The panel highlighted the importance of maintaining provisions similar to those in the 1961 Act to support organizations reliant on traditional donation methods.
(With inputs from agencies.)
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