June 2025

Mohammad Anas Wahaj | 30 jun 2025

According to experts, the new Income Tax Bill 2025 uses 'registered nonprofit organizations (NPO)' instead of multiple terms such as trust, institution etc, streamlines and simplifies tax provisions, and consolidates all provisions related to NPOs in Part B of Chapter XVII. The new bill removes superfluous provisions such as reinvestment of capital gains in a capital asset, tabulates the registration process to enhance readability, and neatly places commercial activities, compliances and violations under separate heads. Gouri Puri, Partner at Shardul Amarchand Mangaldas & Co., says, 'This should be beneficial since many charities that are small scale cannot afford good tax counsel. Saddling them with a complex exemption regime impacted their operations significantly.' Raghav Kumar Bajaj, Counsel at Khaitan & Co, says, In the past few years, the law relating to charitable entities’ exemption has undergone substantial changes. From taxpayers’ perspective, this led to a challenge in keeping a track of annual changes in this space.' Read on...

The Financial Express: Rules for taxation of non-profit entities combined
Author: Priyansh Verma

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