The IT department said that to demand income tax exemption, online applications must be filed by hospitals, religious trust, educational institutions and charitable.
The department asked the stakeholders to give their reviews and comments by November 12, 2018, on the rules and the application forms, demanding tax exemption from such organizations.
The Central Board of Direct Taxes (CBDT) mentioned in a statement that, “in view of the digital advancement that the government in general, and the income tax department in particular, have made, it is imperative that manual filing of these applications should be done away with so, as to ensure not only faster processing of the same but also to reduce interface between the department and the applicant.”
Along with the Xerox of account and balance sheet, the application for exemption must be followed by a self-certified copy of registration with the registrar of companies or registrar of firms and societies or registrar of public trusts as applicable.
Also note that the Supreme court recently passed on the order over Rajasthan High Court citing that the local authorities, under the law of state will not get an exemption in income tax. The Bench said that in the old section 10 (20A) of the Income Tax Act in 2002, the removal of ‘Authorities’ indicated that this facility was not available in the past to the authorities who are taking benefit of the exemption. Many items will be exempted by the local authority in the Jurisdiction of the Income Tax Act.
