The Central Government has released a notification regarding the amendment of Rule 11AA of the Income Tax Rules, 1962. The Rule concerned with the requirements for an institution or fund approval under Section 80G of the Income Tax Rule, 1962.
The Central Board of Direct Taxes (CBDT) announced a few Rules amending the Income Tax Rules, 1962 to implement the jurisdiction furnished in the following clauses- (i), (ii), (iii), and (iv) of the first proviso to sub-section (5) of section 80G and the third proviso to sub-section (5) of section 80G read with section 295 of the Income Tax Act, 1961.
The Sub-rule (7) of Rule 11AA of the Income Tax Rules has been modified by the new amendment, which may be named the Income-tax (7th Amendment) Rules, 2023, which was published and is deemed to go into effect on May 30, 2023.
Subrule 7 Before Amendment If a request is made under clause (iv) of the first provision to sub-section (5) of section 80G, the provisional permission will take effect as of the date of the order, as stated in sub-rule (5).
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The amended sub-rule 7 in the Income-tax Rules of 1962 (rule 11AA) reads, “In case of an application made under clause (iv) of the first proviso to sub-section (5) of section 80G of the Act, the provisional approval shall be effective from the assessment year relevant to the previous year in which such application is made”.
Individuals and organisations may deduct donations given to specific charity institutions or funds under section 80G of the Income Tax Act of 1961. The contributions made to specific qualified organisations may be deducted from the total taxable income, reducing the tax obligation.
Any taxpayer, resident or nonresident, who has donated the money to specified organisations, institutions, or associations can deduct that sum from their gross income before taxation under Section 80G.
