{"id":29263,"date":"2025-05-08T12:37:47","date_gmt":"2025-05-08T07:07:47","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29263"},"modified":"2026-04-08T00:02:43","modified_gmt":"2026-04-07T18:32:43","slug":"union-budget-2025-26-major-impacted-on-ngo-section","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/","title":{"rendered":"Union Budget 2025-26: Major Impacted on NGO Section"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc3544942e3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc3544942e3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#Union_Budget_2025-26_Major_area_of_points_impacted_on_NGO_section\" title=\"Union Budget 2025-26: Major area of points impacted on NGO section \">Union Budget 2025-26: Major area of points impacted on NGO section <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#Section_12AB_Reforms_Simplification_of\" title=\"Section 12AB Reforms: Simplification of\u00a0 : \">Section 12AB Reforms: Simplification of\u00a0 : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#Rationalisation_of_%E2%80%98Specified_Persons_Us_13_Specified_Person_Redefined_Section_133\" title=\"Rationalisation of \u2018Specified Persons\u2019 U\/s 13 ( Specified Person Redefined (Section 13(3)) ) :\">Rationalisation of \u2018Specified Persons\u2019 U\/s 13 ( Specified Person Redefined (Section 13(3)) ) :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#TDS_Thresholds_Raised_%E2%82%B950000_for_professional_fees_%E2%82%B96_lakh_for_rent\" title=\"TDS Thresholds Raised: \u20b950,000 for professional fees, \u20b96 lakh for rent. \">TDS Thresholds Raised: \u20b950,000 for professional fees, \u20b96 lakh for rent. <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#Rationalisation_of_Taxation_for_Business_Trusts_REITs_InVITs-_Long-Term_Capital_Gains_LTCG_Holding_Period_Reduced\" title=\"Rationalisation of Taxation for Business Trusts (REITs &amp; InVITs)- Long-Term Capital Gains (LTCG) Holding Period Reduced:\">Rationalisation of Taxation for Business Trusts (REITs &amp; InVITs)- Long-Term Capital Gains (LTCG) Holding Period Reduced:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#Rationalisation_of_%E2%80%98Specified_Violation_Clause_us_12AB4\" title=\"Rationalisation of \u2018Specified Violation\u2019 Clause u\/s 12AB(4)\">Rationalisation of \u2018Specified Violation\u2019 Clause u\/s 12AB(4)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#New_Income_Tax_TDS_and_TCS_changes_effective_from_April_1_2025_Enhanced_TDS_Thresholds_%E2%80%93_TDS_Amendments_Effective_FY_2025-26\" title=\"New Income Tax, TDS, and TCS changes effective from April 1, 2025\u00a0Enhanced TDS Thresholds &#8211; TDS Amendments (Effective FY 2025-26)\">New Income Tax, TDS, and TCS changes effective from April 1, 2025\u00a0Enhanced TDS Thresholds &#8211; TDS Amendments (Effective FY 2025-26)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#TCS_Amendments_Effective_FY_2025-26\" title=\"TCS Amendments (Effective FY 2025-26)\">TCS Amendments (Effective FY 2025-26)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/union-budget-2025-26-major-impacted-on-ngo-section\/#Equalization_Levy_Removed\" title=\"Equalization Levy Removed: \">Equalization Levy Removed: <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25952\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed.jpg\" alt=\"Formation of NGO in India\" width=\"1920\" height=\"1358\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed.jpg 1920w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed-300x212.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed-1024x724.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed-768x543.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed-1536x1086.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/unnamed-800x566.jpg 800w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Union_Budget_2025-26_Major_area_of_points_impacted_on_NGO_section\"><\/span><span style=\"color: #003366;\"><strong>Union Budget 2025-26<\/strong><strong>: Major area of points impacted on NGO section <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Section_12AB_Reforms_Simplification_of\"><\/span><span style=\"color: #000080;\"><strong>Section 12AB Reforms: Simplification of\u00a0 : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Budget 2025 proposal to extend the registration validity period for smaller charitable trusts and institutions u\/s 12AB is a welcome relief aimed at simplifying compliance. \u00a0\u00a0\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.. Change not impacted on <strong>National Institute of Public Finance Policy<\/strong><\/p>\n<p><strong>Current Scenario (Pre-Amendment): Trusts or institutions registered u\/s 12AB receive:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>5-year registration, or<\/li>\n<li>3-year provisional registration (if activities haven\u2019t commenced).<\/li>\n<\/ul>\n<\/li>\n<li>Renewal is mandatory every 5 years, which adds to the compliance burden\u2014especially for smaller organizations.<\/li>\n<\/ul>\n<p><strong>Proposed Amendment (Effective April 1, 2025): <\/strong>For smaller trusts or institutions, the registration period is increased from 5 to 10 years, if: They apply under sub-clause (i) to (v) of Section 12A(1)(ac), and Their total income (before applying Sections 11 and 12 exemptions) does not exceed \u20b95 crores in each of the two preceding previous years.<\/p>\n<p><strong>Implications:<\/strong><\/p>\n<table>\n<thead>\n<tr>\n<td>Criteria<\/td>\n<td>Pre-Amendment<\/td>\n<td>Post-Amendment (from AY 2025-26)<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Standard Registration Period<\/td>\n<td>5 years<\/td>\n<td>10 years (for eligible small trusts)<\/td>\n<\/tr>\n<tr>\n<td>Threshold for Eligibility<\/td>\n<td>Not applicable<\/td>\n<td>\u20b95 crore total income limit (gross, without exemptions) in both preceding years<\/td>\n<\/tr>\n<tr>\n<td>Provisional Registration (no activity)<\/td>\n<td>3 years<\/td>\n<td>Unchanged<\/td>\n<\/tr>\n<tr>\n<td>Compliance Frequency<\/td>\n<td>Higher<\/td>\n<td>Reduced (fewer renewals needed)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29267\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO.jpeg\" alt=\"ngo\" width=\"1024\" height=\"816\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO-300x239.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO-768x612.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO-800x638.jpeg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rationalisation_of_%E2%80%98Specified_Persons_Us_13_Specified_Person_Redefined_Section_133\"><\/span><span style=\"color: #000080;\"><strong>Rationalisation of \u2018Specified Persons\u2019 U\/s 13 ( Specified Person Redefined (Section 13(3)) ) :<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Threshold for \u201csubstantial contribution\u201d raised from Rs. 50,000 to Rs. 1 lakh\/year or Rs. 10 lakh cumulatively. The contribution threshold raised to \u20b91 lakh annually, \u20b910 lakh cumulatively.\u00a0 Moreover the Relatives and related concerns of contributors excluded from the definition.<\/p>\n<p>From 1st April 2025, the definition of substantial contributor (and hence a \u201cspecified person\u201d other than founders, trustees, etc.) will be modified as:<\/p>\n<table style=\"height: 260px;\" width=\"997\">\n<thead>\n<tr>\n<td>Contribution Basis<\/td>\n<td>Old Threshold<\/td>\n<td>New Threshold<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>In the relevant previous year only<\/td>\n<td>\u20b950,000 (aggregate)<\/td>\n<td>\u20b91,00,000 or more<\/td>\n<\/tr>\n<tr>\n<td>In aggregate up to previous year<\/td>\n<td>\u20b950,000<\/td>\n<td>\u20b910,00,000 or more<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Applies only to donors (not trustees, founders, etc.)<\/li>\n<li>Brings more proportionality and removes overly broad inclusion of minor donors<\/li>\n<\/ul>\n<p>Objective of this change to Focus restrictions only on major donors with potential influence. This Impact on NGO that Simplifies reporting; reduces compliance for small contributions; ensures independence of trust activities from donor influence.<\/p>\n<p>Trusts will no longer need to track small donors over many years. Focus shifts to significant contributors, which is more meaningful. This Helps differentiate between genuine donors and influential contributors who could derive undue benefits from trust assets. If a trust misuses its income by applying it to benefit a specified person, the relevant income portion still becomes taxable\u2014preserving regulatory integrity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"TDS_Thresholds_Raised_%E2%82%B950000_for_professional_fees_%E2%82%B96_lakh_for_rent\"><\/span><span style=\"color: #000080;\"><strong>TDS Thresholds Raised: \u20b950,000 for professional fees, \u20b96 lakh for rent. <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Which Reduced risk of exemption loss due to unintentional donor overlaps.\u00a0 FCRA Scrutiny Continues: Stricter monitoring by MHA. NGOs must strengthen FCRA compliance, governance, and reporting standards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rationalisation_of_Taxation_for_Business_Trusts_REITs_InVITs-_Long-Term_Capital_Gains_LTCG_Holding_Period_Reduced\"><\/span><span style=\"color: #000080;\"><strong>Rationalisation of Taxation for Business Trusts (REITs &amp; InVITs)- Long-Term Capital Gains (LTCG) Holding Period Reduced:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Budget 2025 proposal to amend Section 115UA(2) addresses a crucial oversight in the taxation of business trusts such as REITs and InvITs, by including Section 112A in its scope.<\/p>\n<p><strong>Current Legal Position (Before Amendment) : <\/strong><\/p>\n<p>Section 115UA(2): Business trusts enjoy a <em>pass-through<\/em> status for interest, dividend, and rental income received from SPVs\u2014this income is taxed directly in the hands of unit holders. Tax is levied on the total income of a business trust at the maximum marginal rate (MMR), subject to:<\/p>\n<p><strong>Old rule:<\/strong> Holding period for REIT\/InvIT units to qualify as long-term was <strong>36 months<\/strong>.<\/p>\n<ul>\n<li>Section 111A: Taxation of short-term capital gains on listed securities (15% rate).<\/li>\n<li>Section 112: Taxation of long-term capital gains (LTCG) on assets other than covered u\/s 112A (generally 20% with indexation). Section 112A, which deals with LTCG on listed equity shares, equity mutual funds, and units of business trusts exceeding \u20b91 lakh (taxed at 10%), was not referenced in 115UA(2). This led to ambiguity or even over-taxation of LTCG income from such units at the MMR, instead of the beneficial rate under 112A.<\/li>\n<\/ul>\n<p><strong>Proposed Amendment (Effective AY 2026\u201327)<\/strong><\/p>\n<p><strong>New rule:<\/strong> Holding period <strong>reduced to 12 months<\/strong>, aligning with <strong>listed equity shares<\/strong>.<\/p>\n<ul>\n<li>Section 112A (which governs long-term capital gains or LTCG on listed securities) will now apply to capital gains on the transfer of assets within business trusts. Specifically, LTCG arising from such transactions will now be taxed at 10% (beyond \u20b91 lakh), just like other listed equity-oriented securities.<\/li>\n<li>Section 115UA(2) will be amended to explicitly include Section 112A, alongside 111A and 112. This will extend the benefit of concessional LTCG taxation (10%) under 112A to business trusts and their unit holders, wherever applicable. This means:<\/li>\n<li><strong>LTCG tax rate of 10%<\/strong> (u\/s 112A) now applies after <strong>1 year<\/strong>, not 3. Significantly improves <strong>after-tax returns<\/strong> for investors.<\/li>\n<\/ul>\n<p><strong>Implications and Benefits<\/strong><\/p>\n<table style=\"height: 348px;\" width=\"932\">\n<thead>\n<tr>\n<td>Aspect<\/td>\n<td>Before Amendment<\/td>\n<td>After Amendment (from AY 2026\u201327)<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Applicability of Section 112A<\/td>\n<td>Not mentioned in 115UA(2); risk of MMR<\/td>\n<td>Explicitly allowed<\/td>\n<\/tr>\n<tr>\n<td>Tax Rate on LTCG (units\/shares)<\/td>\n<td>Could be taxed at 30%+<\/td>\n<td>Capped at 10% (above \u20b91 lakh gains)<\/td>\n<\/tr>\n<tr>\n<td>Legal Clarity<\/td>\n<td>Ambiguous<\/td>\n<td>Clear inclusion and consistency<\/td>\n<\/tr>\n<tr>\n<td>Benefit to Investors<\/td>\n<td>Reduced<\/td>\n<td>Enhanced; promotes confidence<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Policy Rationale : <\/strong>Aligns with the original intent of the pass-through regime and concessional tax treatment of capital gains in business trusts. Encourages retail and institutional participation in REITs and InvITs, especially given their growing role in India&#8217;s infrastructure and real estate development.<\/p>\n<p>Standardizes the taxation of long-term capital gains from business trust assets with gains from other equity-like instruments. Addresses the earlier lack of explicit provision for taxing LTCG from internal asset transfers by business trusts. Investor Confidence will be Enhances predictability and transparency for investors in REITs and InVITs.<\/p>\n<p>Retail and institutional investors may find REITs\/InVITs more attractive with simplified tax rules. Internal restructuring of assets in business trusts will now be clearer in terms of tax impact. Brings capital gains taxation of business trusts in line with listed equity shares and mutual funds. This change Aims to make REITs\/InVITs more tax-efficient and appealing to investors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rationalisation_of_%E2%80%98Specified_Violation_Clause_us_12AB4\"><\/span><span style=\"color: #000080;\"><strong>Rationalisation of \u2018Specified Violation\u2019 Clause u\/s 12AB(4)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If a trust\/institution&#8217;s application u\/s 12A(1)(ac) is: Incomplete, or Contains false or incorrect information, it is treated as a \u201cspecified violation.\u201d Cancellation of registration u\/s 12AB(4), even for minor defaults. This also triggers taxation on accreted income under Chapter XII-EB (at 30%). <em>Incomplete applications<\/em> will no longer be treated as \u201cspecified violations\u201d leading to automatic cancellation of registration.<\/li>\n<li>Proposed Amendment (Effective April 1, 2025): Incomplete applications u\/s 12A(1)(ac) will no longer be treated as specified violations u\/s 12AB(4). Only deliberate falsification or incorrect information will remain under the ambit of \u201cspecified violations.\u201d<\/li>\n<li>Prevent cancellation due to minor documentation issues. Protects genuine charitable entities from harsh consequences due to minor procedural lapses. Promotes ease of compliance and reduces litigation risk for trusts\/institutions. Aligns with the government&#8217;s broader goal of simplification and trust-building with the charitable sector. This change is Protects genuine trusts from harsh penalties like taxation on accreted income due to clerical errors; encourages more trusts to apply.<\/li>\n<li>Extended Registration Period for Smaller Trusts : Change: Registration validity extended from 5 years to 10 years for trusts\/institutions with income &lt; Rs. 5 crores in the previous 2 years. This change is Reduce frequency of registration renewals and associated compliance burden.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"New_Income_Tax_TDS_and_TCS_changes_effective_from_April_1_2025_Enhanced_TDS_Thresholds_%E2%80%93_TDS_Amendments_Effective_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong>New Income Tax, TDS, and TCS changes effective from April 1, 2025\u00a0<\/strong><strong>Enhanced TDS Thresholds &#8211; TDS Amendments (Effective FY 2025-26)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 800px;\" width=\"962\">\n<thead>\n<tr>\n<td>Section<\/td>\n<td>Nature of Payment<\/td>\n<td>New Threshold<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>194J<\/td>\n<td>Professional Fees<\/td>\n<td>\u20b950,000 (up from \u20b930,000)<\/td>\n<\/tr>\n<tr>\n<td>194H<\/td>\n<td>Commission\/Brokerage<\/td>\n<td>\u20b920,000 (up from \u20b915,000)<\/td>\n<\/tr>\n<tr>\n<td>194D<\/td>\n<td>Insurance Commission<\/td>\n<td>\u20b920,000 (up from \u20b915,000)<\/td>\n<\/tr>\n<tr>\n<td>194<\/td>\n<td>Dividends<\/td>\n<td>\u20b910,000 (up from \u20b95,000)<\/td>\n<\/tr>\n<tr>\n<td>193, 194A<\/td>\n<td>Interest on Securities\/Others<\/td>\n<td>\u20b910,000<\/td>\n<\/tr>\n<tr>\n<td>194A<\/td>\n<td>Interest (Banks\/Post Office)<\/td>\n<td>\u20b950,000 (Non-Sr. citizens); \u20b91,00,000 (Sr. citizens)<\/td>\n<\/tr>\n<tr>\n<td>194I<\/td>\n<td>Rent<\/td>\n<td>Monthly rent &gt; \u20b950,000<\/td>\n<\/tr>\n<tr>\n<td>194R<\/td>\n<td>Business perks\/benefits<\/td>\n<td>10% if &gt; \u20b920,000\/year<\/td>\n<\/tr>\n<tr>\n<td>194<\/td>\n<td>Partners&#8217; Interest\/Commission\/Remuneration<\/td>\n<td>TDS @10% above \u20b920,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Sections 206AB &amp; 206CCA (higher TDS\/TCS for non-filers) now omitted.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TCS_Amendments_Effective_FY_2025-26\"><\/span><span style=\"color: #000080;\"><strong>TCS Amendments (Effective FY 2025-26)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 355px;\" width=\"941\">\n<thead>\n<tr>\n<td>Nature<\/td>\n<td>Threshold \/ Rate<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Foreign Remittance under LRS<\/td>\n<td>No TCS up to \u20b910 lakh (earlier \u20b97 lakh)<\/td>\n<\/tr>\n<tr>\n<td>Foreign Education Loans (Sec 80E)<\/td>\n<td>TCS exempted (was 0.5%)<\/td>\n<\/tr>\n<tr>\n<td>Overseas Tour Packages<\/td>\n<td>5% up to \u20b910 lakh; 20% beyond \u20b910 lakh<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Equalization_Levy_Removed\"><\/span><span style=\"color: #000080;\"><strong>Equalization Levy Removed: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The 6% levy on digital ad services to non-residents is removed w.e.f. April 1, 2025. Business Trusts (Section 115UA): Capital gains taxed at preferential rates instead of MMR.<\/li>\n<\/ul>\n<p>Effective Date: All changes are proposed to apply from 1 April 2025 (i.e., AY 2025-26 onwards).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-31655\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO-.png\" alt=\"\" width=\"1090\" height=\"1058\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO-.png 377w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/05\/NGO--300x291.png 300w\" sizes=\"(max-width: 1090px) 100vw, 1090px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Union Budget 2025-26: Major area of points impacted on NGO section Section 12AB Reforms: Simplification of\u00a0 : The Budget 2025 proposal to extend the registration validity period for smaller charitable trusts and institutions u\/s 12AB is a welcome relief aimed at simplifying compliance. \u00a0\u00a0\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.. Change not impacted on National Institute of Public Finance Policy Current &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[10291],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29263"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29263"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29263\/revisions"}],"predecessor-version":[{"id":31656,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29263\/revisions\/31656"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}