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MUMBAI: Various amendments relating to charitable trusts have been proposed in the Budget – notable among them is the move towards a single exemption scheme.
The two main exemption provisions for charitable trusts/entities are contained in section 10 (23C) and section 11, while both provide similar tax exemption benefits, they contain specific procedures relating to registration, conditions for approval, etc.Certain eligible modes of investment specified section 10 (23C) will be safeguarded under the second scheme.
Gautam Nayak, tax partner at CNK & Associates, said, “Govt has finally begun the process of merging the two exemption schemes by providing that after Oct 1, all approvals and renewals cannot be sought under section 10 (23C). This is a long overdue and welcome beginning of simplification.”
He adds, “Another welcome move is the provision to delegate the power of condonation of delay in filing applications for approval and renewal under section 12A to the respective Commissioners. This will significantly reduce the litigation caused by rejection of applications by Commissioners solely on account of delay, and the need to approach the CBDT for condonation of delay in such cases.”
The two main exemption provisions for charitable trusts/entities are contained in section 10 (23C) and section 11, while both provide similar tax exemption benefits, they contain specific procedures relating to registration, conditions for approval, etc.Certain eligible modes of investment specified section 10 (23C) will be safeguarded under the second scheme.
Gautam Nayak, tax partner at CNK & Associates, said, “Govt has finally begun the process of merging the two exemption schemes by providing that after Oct 1, all approvals and renewals cannot be sought under section 10 (23C). This is a long overdue and welcome beginning of simplification.”
He adds, “Another welcome move is the provision to delegate the power of condonation of delay in filing applications for approval and renewal under section 12A to the respective Commissioners. This will significantly reduce the litigation caused by rejection of applications by Commissioners solely on account of delay, and the need to approach the CBDT for condonation of delay in such cases.”
