New Income Tax Bill: Will you get TDS refund even if you file ITR late? Parliamentary committee gave 32 big suggestions on new income tax..
Parliamentary Panel on New Income Tax Bill 2025: The Parliamentary Committee on the new Income Tax Bill 2025 has presented its report in the Lok Sabha. In this report, the committee has given 32 important suggestions. These include the important recommendation that those who file income tax returns after the deadline (Late ITR Filing) should also get a refund of TDS without any penalty. Along with this, it has also been suggested that anonymous donations given to trusts that do both religious and social work should not be taxed.
Concern for non-profit organizations in the report
This report has been prepared by the committee led by BJP MP Baijayant Panda. Income Tax Bill 2025 is going to replace the old Income Tax Act 1961. Therefore, the committee has reviewed it in depth and given many suggestions to the government.
The report has expressed particular concern about those non-profit organizations (NPOs) which do social service along with religious work. The committee says that it would not be right to tax the anonymous donations received by these organizations.
It is not right to tax the entire income of NPO.
The committee believes that taxing the entire donation received by a non-profit organization is against the principle of 'tax on real income' of the Income Tax Act. The committee suggests that only the "net income" of such organizations, that is, the amount left after deducting expenses, should be taxed.
Confusion regarding anonymous donations
The committee also said that there is no clarity in the provisions of the new bill regarding anonymous donations received by trusts which do both religious and social work. In the currently proposed bill, only 'purely religious trusts' have been exempted from anonymous donations. But the committee says that there are many such trusts which also run temples and hospitals or schools.
In such a situation, it would not be right to give exemption only to religious trusts. The committee said that in the old law, religious-social trusts were recognized as a separate category, which has been ignored in the new bill.
Possibility of adverse impact on social sector
The committee report states that even though the purpose of the new Income Tax Bill is to simplify the language of the law, many important things related to religious-social trusts have not been included in it. This may affect the large social sector of the country, which is dependent on the traditional donation system.
Proposal of direct 30% tax on anonymous donations
Clause 337 of the new Income Tax Bill 2025 proposes that a direct 30% tax will be levied on anonymous donations received by all registered NPOs. Only trusts with purely religious purposes will be exempted from this.
This proposal is completely different from Section 115BBC of the current Income Tax Act 1961. Under the current law, if an institution is formed for both religious and social purposes, and it receives anonymous donations, then it is not taxed, unless the donation is given directly to a university, hospital, or other institution.
It is wrong to make laws without understanding the tradition
The committee says that religious-social organizations receive most of the donations through traditional methods like donation boxes, where it is not possible to identify the donor. In such a situation, the new provision will not be able to do justice to these institutions.
The committee has recommended that keeping these things in mind, the 'interpretation' of section 115BBC should be included again in the new bill, just like the old law. The committee has said, "We recommend bringing back the same system as section 115BBC of the 1961 law."
