New Delhi: Finance Minister Nirmala Sitharaman on Friday withdrew the Income Tax Bill, 2025 from the Lok Sabha, paving the way for a revised version to be tabled on August 11. The updated draft, set to replace the Income Tax Act, 1961, will incorporate key recommendations from the 31-member Select Committee led by Baijayant Panda.
Sources said the decision aims to bring clarity and avoid confusion by consolidating all suggested amendments into a single, streamlined Bill.
Among the significant changes, the panel recommended retaining tax exemptions on anonymous donations made to purely religious trusts, while charitable trusts involved in activities like healthcare or education will continue to be taxed on such contributions. The revised Bill is also expected to allow TDS refund claims post-ITR deadline without penalty.
The original Bill, introduced in February, had drawn scrutiny over several provisions, prompting the Centre to go back to the drawing board.
