Latest news with #IncomeTaxBill
Business Standard
10 hours ago
- Politics
- Business Standard
Monsoon Session begins with protests, impeachment motion, and high-stakes debates
The Monsoon Session of Parliament kicked off with high drama, as the opening day saw loud protests, multiple adjournments, and the tabling of an impeachment motion. In the Lok Sabha, the opposition came out swinging, demanding an immediate discussion on the recent Pahalgam terror attack and the Armed Forces retaliatory Operation Sindoor. Their repeated sloganeering led to three adjournments through the day, despite Speaker Om Birlas repeated calls for decorum and constructive dialogue. Parliamentary Affairs Minister Kiren Rijiju and Defence Minister Rajnath Singh assured the House that the government was open to discussion on every issue, but the uproar continued to stall proceedings. The Rajya Sabha, in contrast, managed to resume normal business after one brief disruption in the morning. The upper house successfully completed the Question Hour, took up Special Mentions, and passed the Lading Bill, 2025 after a round of discussion. Adding to the tension, 145 MPs submitted a memorandum to Speaker Om Birla seeking the removal of Justice Yashwant Varma, citing serious allegations linked to a cash recovery from his residence. The impeachment motion has been moved under Articles 124, 217, and 218 of the Constitution, triggering a parliamentary inquiry. Later in the day, the Business Advisory Committee decided to allocate 16 hours for a detailed debate on Operation Sindoor in the Lok Sabha. Additionally, the Income Tax Bill, 2025 will be taken up with 12 hours of discussion time in the Lok Sabha and 9 hours in the Rajya Sabha. The Monsoon Session, which began on July 21, is slated to run till August 21. Parliament is expected to wrestle with critical issues spanning national security, judicial accountability, and economic reform. Despite the noisy start, Speaker Birla urged members to rise above partisan interests and ensure the House works effectively for the public good.
The Hindu
11 hours ago
- Business
- The Hindu
VP Jagdeep Dhankhar's 'shocking' resignation ignites speculations
Political speculations were re-ignited on the inaugural day of the Monsoon Session on Monday (July 21, 2025) though not for events inside the chambers but outside. Late in the evening Vice President Jagdeep Dhankhar sought to step down from his position citing health issues. As the Chairman of Rajya Sabha, Mr. Dhankhar had chaired the Business Advisory Committee that comprises key members from Treasury and Opposition Benches. During the inaugural session, Mr. Dhankhar had reiterate members to maintin order in the house and assured a discussion on Operation Sindoor and Pahalgam terror attack after the position demanded the same and even walked out. Today's session is likely to be chaired by Deputy Chairman Harivansh. The unexpected resignation Congress leader and Rajya Sabha member Jairam Ramesh in a long social media posted claimed there could be "far deeper reasons" behind Mr. Dhankhar's resignation. Furthermore, underlining there be no speculation he stated on social media, 'Mr. Dhankhar took both the Govt and the Opposition to task in equal measure,' elaborating, 'He had fixed a meeting of the Business Advisory Committee tomorrow at 1 PM. He was also to make some major announcements related to the judiciary tomorrow.' The Congress' Communications Chief sought Mr. Dhankhar reconsider his decision, further urging Prime Minister Narendra Modi to 'change his mind'. Select Committee tables its report on Income Tax bill Lok Sabha was adjourned thrice on Monday before it had to call off proceedings for the day. Notwithstanding the protests, the Select Committee on the Income Tax Bill, 2025 tabled their report.. T.C.A Sharad Raghavan, who compared the report with the original draft found the Select Committee has retained the contentious provisions allowing tax officials to forcibly access social media, private email. The Select Committee was headed by BJP MP Baijayant Panda, and the proposed Income Tax bill, 2025 seeks to replace the incumbent six-decade old legislation. The Finance Ministry would now review the suggestions after which it would be taking a call on either introducing it in the house to be made a legislation or making changes. Facts on Air India crash would be known after final report: Civil Aviation Minister in Rajya Sabha The other major development originated in the house of elders. During the Question Hour, Union Civil Aviation Minister Ram Mohan emphasised the facts of the Air India crash would be known after the final report is out. He held the media reports on preliminary findings as 'their own viewpoint'. Mr. Naidu urged everyone to wait for the final report. Furthermore, in his response to a related question, the Civil Aviation Minister informed there has been no discrimination in providing compensation and related assistance to victims of the air crash – passengers or otherwise. That is all from our recap coverage of the inaugural day. On what to look forward to today: Union Minister for Law and Justice Arjun Meghwal is expected to move the Readjustment of Representation of Scheduled Tribes in Assembly Constituencies of the State of Goa Bill, 2024 in the Lok Sabha. The Bill seeks to readjust seats of the Goa Legislative Assembly to provide for inclusion of certain Scheduled Tribe communities of the state. Additionally, Minister of Ports, Shipping & Waterways Sarbananda Sonowal is expected to move Carriage of Goods by Sea Bill, 2024. The Bill seeks to establish 'responsibilities, liabilities, rights and immunities' for the carriage of goods from a port in India to the rest of the world and aligns with international conventions. Follow our real-time coverage of today's sitting here. Until next time.
News18
14 hours ago
- Business
- News18
Changes In TDS Refunds? Here's What We Know So Far
1/9 A Parliamentary panel reviewing the draft Income Tax Bill, 2025 has recommended key changes related to TDS refund rules and the taxation of trusts, especially those with both religious and charitable objectives. (Image: AI-Generated) The Select Committee of the Lok Sabha, chaired by BJP MP Baijayant Panda, tabled its report in the Lower House on Monday, proposing amendments to the Bill that aims to replace the Income Tax Act, 1961, which has been in force for over six decades. (Image: AI-Generated) One of the key suggestions made by the panel is that individual taxpayers should be allowed to claim TDS refunds even if they file their income tax return after the due date, without facing penalties. (Image: AI-Generated) 'In such scenarios, the law should not compel a return merely to avoid penal provisions for non-filing," the panel said. 'The committee, therefore, recommend to remove sub-clause (1)(ix) from Clause 263 to provide flexibility for allowing refund claims in cases where the return is not filed in due time." (Image: AI-Generated) The committee also raised serious concerns about the proposed Clause 337 of the new Bill, which imposes a flat 30% tax on anonymous donations received by all registered Non-Profit Organisations (NPOs) — with limited exemption only for those set up wholly for religious purposes. (Image: AI-Generated) This, the panel observed, would adversely affect religious-cum-charitable trusts, a category recognised under the existing law. Under Section 115BBC of the Income Tax Act, 1961, such hybrid entities are granted broader exemptions, as long as the donations are not specifically directed toward educational or medical institutions run by the same trust. (Image: AI-Generated) Overall, the committee's report flags the need for greater clarity and fairness in the new tax regime, especially in areas affecting small taxpayers and the non-profit sector. (Image: AI-Generated)
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Business Standard
15 hours ago
- Business
- Business Standard
New Tax Bill may allow late ITR refunds, protect NGO income from heavy tax
In a key move that could impact millions of taxpayers and not-for-profit organisations (NPOs), a Parliamentary Select Committee led by BJP MP Baijayant Panda has recommended critical changes to the draft Income Tax Bill, 2025, which seeks to replace the six-decade-old Income Tax Act, 1961. The panel's 4,575-page report, tabled in the Lok Sabha on Monday, focuses on simplifying the tax code while safeguarding key exemptions for religious-charitable institutions and easing compliance for small taxpayers. Relief for Religious-cum-Charitable Trusts One of the most significant recommendations is to retain the existing tax exemption on anonymous donations made to religious-cum-charitable trusts. Clause 337 of the new Bill had proposed a flat 30% tax on all anonymous donations, except for those made to purely religious trusts. This marked a sharp departure from current law, under which religious and charitable trusts receive broader exemptions unless the donations are specifically earmarked for hospitals or educational institutions they run. The Committee flagged this as a "critical omission" and urged the reintroduction of a provision similar to Section 115BBC of the current Act to prevent adverse consequences for religious-charitable trusts. 'The proposed clause could significantly disrupt the NPO ecosystem,' the report warned. Tax Only 'Income', Not 'Receipts' Another major concern addressed is the proposed shift from taxing 'income' to 'receipts' of NPOs. The Committee strongly opposed this move, arguing it goes against the principle of real income taxation. Taxing gross receipts would unfairly include capital recoveries and inflows that do not represent actual earnings, it said. Instead, the Committee recommended a return to net income-based taxation, urging a rewrite of Clause 335 to ensure only surplus income is taxed, not donations or reimbursements. TDS Refunds Without ITR Filing In a taxpayer-friendly move, the Committee also proposed allowing TDS refunds without mandatory ITR filing. The current draft Bill requires individuals to file a return within the due date to claim a TDS refund — even if their total income is below the taxable limit.'This may inadvertently criminalise small taxpayers who are otherwise non-filers,' the report cautioned. The Committee has therefore suggested removal of Sub-clause (1)(ix) from Clause 263, which mandates return filing for refund claims. Shift to 'Tax Year' Welcomed The Committee has also welcomed the government's decision to replace the concepts of 'previous year' and 'assessment year' with a unified 'tax year'. This move is expected to streamline tax references, reduce confusion, and improve accessibility of the law to non-specialists. Additional Recommendations According to experts, the Committee has made over 566 suggestions aimed at refining the draft Bill. These include: Modernising definitions such as "capital asset" and "infrastructure capital company" Clarifying property-related deductions Re-emphasising the "actual payment" rule for claiming business expense deductions Making penalties for non-maintenance of books discretionary Creating procedural safeguards to prevent excessive penalisation of honest taxpayers Nangia Andersen LLP, M&A Tax Partner, Sandeep Jhunjhunwala said the Committee has suggested modernising definitions such as "capital asset" and "infrastructure capital company", clarifying property-related deductions, and reinforcing the "actual payment" rule for business expenses. It has also recommended procedural safeguards such as making penalties for non-maintenance of books discretionary and permitting refund claims even where returns are not filed on time. According to Amit Baid, Head of tax at BTG Advaya: 1) Reintroducing Nil withholding certificates helps prevent refund backlogs for genuine zero-tax cases — including non-residents entitled to treaty relief on cross-border transactions. (2) Disallowing all deductions just because a return was late would have punished lakhs of genuine taxpayers. The Committee's fix restores sanity by limiting this to only certain income-linked deductions. (3) Without the phrase 'in the circumstances of the case', GAAR could have become a tax sledgehammer - treating even bona fide restructurings as abuse. The Committee's intervention restores balance and guards against overreach on honest transactions. (4) Many legacy trusts were staring at disqualification under vague definitions. By recommending clarity on 'wholly for charitable or religious purpose', the Committee saves hundreds of older institutions from legal limbo. Chance missed The Committee missed the chance to resolve the double taxation risk in holding company structures. Denying inter-corporate dividend deduction under the 22% concessional regime not only breaks with past policy logic, but could make this regime unattractive for investment vehicles and cross-border structures. Tax-neutral treatment for fast-track demergers could be challenging. By not addressing this, the Committee has left a key gap that may discourage intra-group restructurings." As the Monsoon Session of Parliament begins on July 21, the debate on the Committee's recommendations will shape the final contours of the Income Tax Bill, 2025, before it replaces one of India's longest-standing laws. "The report provides clause by clause evaluation of the Bill with total 566 observations / recommendations for change. This is a mammoth task performed in a record time with precise and relevant recommendations. Now the Lok Sabha has to debate the recommendations and identify the changes that are required in the current Bill to make it futuristic and relevant for common tax-payers. It is highly desirable to defunct the old law and bring a new law which is transparent, easy to comprehend, in line with current business requirements and help to reduce tax disputes," said Preeti Sharma, Partner, Tax and Regulatory Services, BDO India.
Time of India
17 hours ago
- Business
- Time of India
Parliament panel for TDS refunds after due date without fine
Representative image NEW DELHI: A parliamentary panel, headed by BJP leader Baijayant Panda, has favoured continuing tax exemption on anonymous donations made to religious-cum-charitable trusts in the new Income Tax Bill, saying any removal would have an adverse impact on not-for-profit groups. The 31-member select committee of the Lok Sabha that examined the new Income Tax Bill, 2025, also suggested allowing taxpayers to claim TDS refund even after the ITR filing due date without paying any penal charges. The committee has recommended changes in the Income Tax Bill, 2025, which will replace the six-decade-old Income Tax Act, 1961. The 4,575 page report, which was tabled in the Lok Sabha on Monday, also made suggestions for sweeping changes in the way the new Income Tax Bill, 2025, was to treat income of non-profit organisations (NPOs), while commending tax department's move of replacing the dual concepts of 'previous year' and 'assessment year' with a single, unified term: 'tax year.' 'The adoption of a single, consistent 'tax year' streamlines tax period references throughout the legislation, making the law more accessible and easier to understand,' the report said. With regard to NPOs, the government in the new bill has exempted from tax anonymous donations received by purely religious trusts. However, such donations received by a religious trust that may also have other charitable functions, like running hospitals, and educational institutions, will be taxed as per law. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
