New Income Tax Bill: New Income Tax Bill passed in Lok Sabha, what is necessary to know for taxpayers

The new Income Tax Bill passed in the Lok Sabha on Monday, along with maintaining several important provisions of the current law, has been included. In the Income Tax (Number 2) Bill, the facility of filing income tax returns (ITR) for TDS (tax deduction at source) claims and all religious and charitable trusts have been exempted from anonymous donations.

Also Read: Raga: Now a big mass movement against ‘vote theft’, Rahul Gandhi was happy with public support

In February this year, it was proposed to remove these provisions in the original Income Tax Bill introduced in Parliament. The provision of the Income Tax (No. 2) Bill has been adopted by adding the word ‘profession’ to such professionals, whose annual receipts are more than Rs 50 crore, the facility to adopt the prescribed electronic payment medium.

Additionally, the provisions related to taking forward income deficit and adjusting have been renewed to better introduce the provisions. Apart from this, the deadline for filing details of reform in TDS claims has also been reduced to two years, which was 6 years in the Income Tax Act, 1961.

Sources in the Central Board of Direct Taxes (CBDT) said that this provision is expected to reduce the complaints of tax deducted units. Almost all the recommendations made in the report submitted by the Select Committee on July 21 have been placed in the Income Tax (No. 2) Bill, which is going to replace the Income Tax Act, 1961. The original Income Tax Bill, 2025 was sent to the Select Committee.

Also Read: Fatehpur Row: Why did there be a ruckus in Fatehpur, what is the controversy of the mausoleum in Idgah, why did Hindu organizations wave saffron flag

The Select Committee had suggested the restoration of the provisions of the Income Tax Bill 1961 regarding taxation on donations to non-profit organizations (NPOs) or charitable trusts. In the case of anonymous donation received by non-profit organizations (NPOs), the registered NPOs with both religious and charitable objectives will also be taxed.

However, a religious trust will be taxed according to the law, which also does other charitable work like running hospitals and educational institutions. Sources said that in the bill, provisions related to taxation on anonymity donation have been associated with the current provisions of the Income Tax Act, 1961. Now rebate has also been made available to registered non-profit organizations with mixed objectives. “

Along with this, a provision has been made to impose tax only on the actual income of the NPO using the word ‘income’ instead of ‘receipts’. Sources said that the concept of receipts kept in the Income Tax Act, 1961 have been replaced with the concept of income. The bill gives relief to those who want to take TDS refund despite not being compulsory to file ITR within the stipulated time.

In the earlier the proposed bill, it was a provision that the taxpayer would have to file income tax returns within the due date to get TDS refund. But it has been replaced on the suggestion of the Select Committee. Now people who are not obliged to file ITR, will be able to claim TDS refund even after the scheduled deadline has passed.

Also Read: Before the meeting of Trump and Putin, Jailmanki called PM Modi, know which issue was talked about

The bill also includes provisions related to tax exemption to customers of Integrated Pension Scheme (UPS). Apart from this, the new system of wholesale assessment in income tax search cases and some direct tax benefits to Saudi Arabia’s Public Investment Fund have also been included. Language edited by: Sudhir Sharma