Quick Summary
A Parliamentary Select Committee examining the draft Income Tax Bill, 2025 has recommended key amendments aimed at easing the compliance burden on small taxpayers and safeguarding the interests of religious-cum-charitable non-profit organisations (NPOs). The report, tabled in the Lok Sabha on July 22, 2025, by BJP MP Baijayant Panda, who chaired the panel, called for the removal of penalties on late IT return filings when claiming TDS refunds and urged the Finance Ministry to exempt anonymous d
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FAQ :
The committee recommends removing penalties for late filing of tax returns when individuals are claiming TDS refunds, especially if their income is below the taxable threshold.
The panel believes that penalising low-income individuals and small taxpayers who have TDS deducted but are not otherwise liable to file returns would be unfair.
The committee has recommended exempting anonymous donations received by religious-cum-charitable trusts from taxation.
The committee highlighted that many trusts are hybrid, engaging in both religious and charitable activities, and donations via methods like collection boxes often lack donor identification, which could lead to unfair tax liabilities under the proposed bill.
The bill aims to replace the existing Income Tax Act, 1961, with the goal of modernising and simplifying income tax laws in India.
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