Income tax bill 2025: Amid the demonstration of MPs of India coalition for amending the voter list before the Bihar assembly elections, the new income tax bill brought in place of the six decade -old income tax law was passed in the Lok Sabha on Monday. It was introduced by Nirmala Sitharaman instead of the Old Income Tax Act, 1961.

The government had formally withdrawn the income tax bill introduced in February last week, as some more changes were felt in it. Most of the suggestions of Baijayant Panda -led Pravar Committee have been included in this new income tax bill.

Will something change?

Many such changes have been made in the new bill, which can make the Income Tax Act easier. In Parliament, the Union Finance Minister said that the real purpose of bringing this bill was to avoid confusion and present the updated bill. This new bill has 536 sections, 23 chapters and 16 schedules, which have been easily understood through table-formul.

The new bill has more rights to CBDT (Central Direct Tax Board), so that the tax system can be made more transparent and digital. Also, the rules of TDS and deputy have been easier.

This bill provides for taxpayers to reduce fine. To reduce tax disputes, the policy of “first trust, then investigation” has been adopted. Apart from this, the rules related to refund have also been changed on late filing of income tax returns. Previously, despite the reasons of reasonable reasons, the taxpayers did not get refunds for filing late returns, but now this ban has been lifted.

More rights to CBDT

Taxpayers have been provided with the facility of taking “Nil TDS” certificates without any tax liability, which can improve cash flow. CBDT has been given more rights than before making rules to make the tax process fast and corruption free. Apart from this, an attempt has also been made to promote faceless assessment and automatic case allocation in the bill.

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Income tax bill 2025: A report was presented by the Selection Committee of the Lok Sabha on the Income Tax Bill 2025 in the House on Monday. The committee has recommended many major changes in it, which will replace the Income Tax Act, 1961, nearly six decades. The 4,575 -page report suggests individual taxpayers to claim the tax deduction (TDS) refund at the source by filing the income tax return after the due date without any fine. It has also been suggested to keep the anonymous donation given to religious and paramarth trusts tax free.

New income tax bill introduced

The select committee of the Lok Sabha, constituted by BJP MP Baijayant Panda, has also suggested extensive changes in the manner of management of non-profit organizations (NPOs).

The Select Committee says that the ambiguity should be overcome with the NPOs, especially for the organizations with charitable and charitable objectives with anonymity donation. The committee has opposed taxing on the ‘receipts’ of non-profit institutions (NPOs), as it is a violation of the principle of real income taxation under the Income Tax Act.

The Select Committee has recommended the re -implementation of the word ‘income’ in the suggestions, so that it can be ensured that only the net income of the NPO is taxed. Given that there is a ‘significant difference between anonymity donation’ to the registered NPO, the committee suggested that both religious and paramarth trust (trust) should be exempted on such donations.

30 percent tax on secret donation

In the Income Tax Bill, 2025 section 337, it is proposed to impose 30 percent tax on secret donations to all registered NPOs, in which only the NPOs established for religious purposes have been limited. This is completely different from the current section 115 BBC of the Income Tax Act, 1961. The current law has been given a more comprehensive exemption.

According to this, if a trust or institution is made entirely for religious and charitable works, then secret donations are not taxed. Significantly, such organizations usually receive contribution from traditional mediums (such as donation boxes), where it is impossible to identify the donor. “The committee strongly urges a provision to re -implement a provision in accordance with the explanation given in the BBC,” said in the report of the Parliamentary Committee.

The 31 -member Committee of the Lok Sabha, which investigated the new Income Tax Bill, 2025, also suggested that taxpayers should be allowed to claim TDS refund even after paying any punitive fee even after the last date of filing ITR. Regarding the withdrawal of TDS refund claims of persons who do not usually need to file tax returns, the committee suggested that the Income Tax Bill should remove the provision in the Income Tax Bill, which makes it mandatory for the taxpay to file income tax returns within the fixed date.

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