NEW DELHI: Finance Minister Nirmala Sitharaman on Friday withdrew the Income Tax Bill, 2025, from the Lok Sabha. The government plans to introduce a revised version of the bill on August 11, incorporating recommendations made by the Select Committee.
Sources confirmed that the updated bill will reflect most of the committee’s suggestions. “To avoid confusion caused by multiple versions, the government will present a single, comprehensive version of the Income Tax Bill for the House’s consideration on Monday,” they said.
The original bill, introduced on February 13, aimed to replace the six-decade-old Income Tax Act of 1961. It was sent to a 31-member Select Committee led by Baijayant Panda for review. The committee proposed several changes, including:
- Retaining tax exemptions on anonymous donations to purely religious and religious-cum-charitable trusts.
- Allowing taxpayers to claim TDS refunds after the ITR filing deadline without incurring penalties.
The revised bill exempts purely religious trusts from tax on anonymous donations. However, religious trusts that also engage in charitable activities—such as running hospitals or schools—will be taxed on such donations in accordance with the law.
