I-T dept tweaks exemption norms for charitable institutions, seeks details

New Delhi, June 26, 2023

As per amendments to the Income Tax Rules, which will come into effect from October 1, charitable institutions will have to now disclose whether the activities undertaken by them are charitable

The income tax department has tweaked disclosure norms for charitable institutions claiming I-T exemption by seeking additional details.

As per amendments to the Income Tax Rules, which will come into effect from October 1, charitable institutions will have to now disclose whether the activities undertaken by them are charitable, religious or religious cum charitable.

The amendment also includes a declaration under which the charitable institution will have to give details of donations received from a person in excess of Rs 2 lakh in a single day.

The details to be furnished include the name of the payer, address, amount of payment and PAN (if available).

Nangia Andersen LLP Partner Vishwas Panjiar said the government had recently revamped the registration requirement applicable for charitable organisations for claiming tax exemption or obtaining an 80G certificate under the Act.

"The government have now made consequential amendments in the Income-tax Rules (Rule 2C, 11AA and 17A). The amended Rules shall be applicable from 1 October 2023 itself. Further, 'undertaking' given at the end of respective forms has also been slightly tweaked and requires an additional undertaking from the applicant," Panjiar said.

Under the Income Tax law, the income of charitable institutions, religious trusts, and medical and educational institutions are exempt from tax. However, these institutions are required to seek registration from the I-T department.

[Press Trust of India]