The Central Board of Direct Taxes (CBDT) has supposedly strengthened the norms for charitable, educational, and religious trusts with their income tax returns, months after detecting suspicious sweeping tax evasion by taxpayers showing large donations to charitable trusts, as per the media report on Tuesday.
The suspects will now be subject to disclose the name, address, and Permanent Account Numbers(PAN) of donors whose contribution exceeds Rs. 2 lakh in a day.
It was mentioned in the reports that these provisions tightened to enhance transparency and accountability.
The trusts must now provide a declaration along with the donation details, stating that their activities are of a religious, charitable, or both nature.
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As per the report, the CBDT has also examined and modified the format of this move, following the latest regulations, which are expected to come into effect on October 1, 2023.
At the same time, the government has recently made changes to the registration process for charitable organisations, specifically related to tax exemption claims or obtaining a section 80G certificate under the I-T Act.
According to the latest regulations, all newly established trusts or institutions will need to apply for provisional registration at least one month before the start of the financial year for which they are seeking registration.
