New donation rules: According to the notification of the Central Board of Direct Taxes, religious and educational trusts will have to provide the names, addresses and permanent account numbers of the donors in their income tax returns.
If you also donate to religious institutions or temples, then definitely read the changed rules of the Income Tax Department. Earlier many people used to donate secretly. But now it will be necessary to mention the names of such people while filing income tax returns. According to a Central Board of Direct Taxes notification, charitable, religious and educational trusts will now have to provide additional disclosures in their income tax returns, including names, addresses and permanent account numbers of donors who donate more than Rs 2 lakh in a day.
Have to give affidavit
Institutions will also have to give an undertaking regarding the amount received in donation. It has to be mentioned whether the activities carried out by him were charitable, religious or religious-cum-charitable in nature. The donated amount was also used for the same.
CBDT has also changed the format of undertaking to be given as per the latest rules which will be applicable from 1st October. The government recently reformed the registration framework for charitable organizations to claim tax exemption on donations under the Act or obtain 80G certificate.
The new rules for endowments state that new trusts or institutions will have to apply for interim registration at least one month before the start of the year in which registration is sought.
When will the new rules be applicable
The new rules made for donations to religious institutions and temples will be implemented from October 1, 2023. Along with this, changes have also been made in the rules of undertaking in the form. That is, after October 1, 2023, the organization will have to take complete information about all the donors. So that they do not face any problem while filing income tax return.
Schools also included in charitable institutions
According to the Income Tax Act, medical, educational institutions, religious institutions are exempted from tax. But to take this exemption, you have to give full details of all your expenses and income. Under this, the Income Tax Department has given a new format to the registration rules for the institutions that have received 80G certificates.
