New Income Tax Bill 2025 provisions summarised for NPOs
Socio Research & Reform Foundation
Income Tax
New Income Tax Bill 2025 provisions summarised for NPOs
Govt has brought out new Income Tax Bill 2025 to replace Income Tax Act 1961. While the overall Bill has a large number of provisions, SRRF has made a summary of impact of changes proposed in the new Bill for Non-Profit Organisations. These are summarised as below:
1. Consolidation and Simplification of Provisions
Unified Framework
a. The Bill consolidates scattered provisions related to NPOs into a dedicated chapter XVII Part B, covering clauses 332 to 355. The Chapter is further sub-divided into seven sub-parts. This will enhance clarity.
Standardized Terminology
b. “Registered Non-Profit Organisation or NPO” would be the new term encompassing entities registered under Sections 12A, 12AA, 12AB or 10(23C), provided their registration is not cancelled. This will replace existing term like Trust, Charitable, NGO, etc.
2. Streamlined Registration and Compliance
Existing Registrations
c. NPOs already registered under the current provisions need not re-register under the new bill. However new approvals under S.10(23C) will cease after 1-10-2024.
Structured Compliance
d. The bill introduces a structured approach to registration, taxation of income, permissible commercial activities…..….(click to read more)
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With warm regards
Ramanuj Maurya
Coordinator
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