<h1>Income Tax (No.2) Bill 2025 restores donation exemptions, revises TDS rules, and updates loss carry-forward provisions</h1> The new Income Tax (No.2) Bill, 2025, passed by Parliament, restores exemptions for anonymous donations to religious-cum-charitable trusts, aligning with the Income Tax Act, 1961, and reverses earlier proposals to tax such donations at a flat 30%. It also reinstates flexibility for individuals claiming TDS refunds without mandatory timely ITR filing. The bill expands electronic payment provisions to include professionals with receipts exceeding Rs 50 crore and revises loss carry-forward rules for clarity. The timeframe for filing TDS correction statements is reduced from six to two years to ease deductee grievances. Additionally, the bill incorporates amendments from the Taxation Laws (Amendment) Bill, 2025, including tax exemptions for Unified Pension Scheme subscribers, changes to block assessment in search cases, and direct tax benefits for certain foreign public investment funds. The bill reflects Select Committee recommendations emphasizing net income taxation for non-profit organizations rather than taxing gross receipts.