Parliament Panel's Progressive Tax Recommendations

A parliamentary panel, led by BJP leader Baijayant Panda, has proposed significant tax reforms, including the continuation of tax exemptions on anonymous donations to religious-cum-charitable trusts. The panel warns that removing these exemptions could adversely affect not-for-profit organizations.

Streamlining Tax Processes

The 31-member Lok Sabha select committee has also recommended allowing taxpayers to claim TDS refunds after the ITR filing deadline without incurring penalties. This suggestion is part of the broader Income Tax Bill, 2025, aimed at modernizing the 1961 Income Tax Act.

Simplifying Tax Terminology

Highlighting the move to replace 'previous year' and 'assessment year' with a unified 'tax year', the committee praised this change for making tax laws more accessible and easier to understand.

Impact on Non-Profit Organizations

The new bill proposes to tax anonymous donations received by trusts with both religious and charitable functions, such as running hospitals and educational institutions, while exempting purely religious trusts.