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Breather for charitable institutions

The CBDT has decided that the implementation of the new procedure shall be deferred to October 1, 2020
The amendments provided an opportunity for the department to scrutinise the applications of charitable trusts and institutions and prevent any revenue leakage.
The amendments provided an opportunity for the department to scrutinise the applications of charitable trusts and institutions and prevent any revenue leakage.
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A Staff Reporter   |   Calcutta   |   Published 09.05.20, 07:03 PM

The Central Board of Direct Taxes (CBDT) has deferred the new procedure for registration of charitable trusts, funds and institutions that was announced in the Union budget.

Through the Finance Act 2020, the central government had rationalised the procedure relating to approval/ registration/ notification of these entities effective July 1, 2020.

The amendments provided an opportunity for the department to scrutinise the applications of charitable trusts and institutions and prevent any revenue leakage.

“The CBDT has decided that the implementation of the new procedure shall be deferred to October 1, 2020.”

“The entities approved under section 10(23C), 12AA, 35 and 80G of the Income-tax Act, 1961 would be required to file intimation within three months from October 1, 2020,” finance ministry said in a statement on Saturday.

The necessary legislative amendments shall be proposed in due course.

“Charitable trusts, medical and educational institutions registered under the Income Tax Act render service to the poor. It is necessary to extend support to them in the present situation. It is desirable that the new procedure should be withdrawn instead of deferring it till October 1, 2020,” said tax advocate Narayan Jain.

The government said that it has received a number of requests to defer the applicability of the new procedure. 'Various representations were received in the finance ministry expressing concerns over the implementation of the new procedure from 1st June, 2020 due to the outbreak of novel corona virus and consequent lockdown,' the ministry said.



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