Industry News

Parliament panel recommends penalty-free TDS refund after due date

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A parliamentary panel led by BJP MP Baijayant Panda has suggested that taxpayers should be allowed to claim TDS refunds even after the Income Tax Return (ITR) due date, without incurring penalties. The 31-member panel, reviewing the draft Income Tax Bill 2025, submitted a detailed 4,575page report to the Lok Sabha.

It also endorsed continued tax exemptions on anonymous donations received by religious-cum-charitable trusts, warning that any reversal could harm notfor-profit groups. The new bill proposes to replace the six-decade-old Income Tax Act, 1961, and introduces a unified "tax year," replacing the earlier "assessment" and "previous" year terms.

Notably, the bill exempts anonymous donations to purely religious trusts from taxation, but donations to trusts with mixed religious and charitable functions-such as those running hospitals or schools-will remain taxable. The recommendations aim to simplify tax processes while ensuring fairness for religious and social institutions.

Nationwide I-T raids expose bogus deduction networks The Income Tax Department has launched a nationwide crackdown on fraudulent deduction claims across India, targeting 150 locations. The operation focuses on individuals and institutions falsely claiming exemptions under various sections of the I-T Act, including those for donations, health insurance (Section 80D, 80DDB), HRA (Section 10(13A)), education loans (80E), home loans (80EE), and electric vehicles (80EEB).

The Central Board of Direct Taxes (CBDT) said even employees of MNCs, public sector enterprises, academic institutions, and entrepreneurs are under scrutiny for unjustified claims. Authorities have begun examining digital and financial records, warning that penalties and prosecution could follow.