Here are the new regulations of the Income Tax applicable to charitable and Religious Trusts
A new rule (17AA) titled ‘Books of account and other documents to be kept and maintained’ has been added to Income Tax Rules 1962. The Central Board of Direct Taxes (CBDT) has brought out a comprehensive list of records that charitable institutions that get income tax exemption have to maintain. These Income Tax (24th Amendment) Rules have come into effect from August 10 and would be applicable for universities, medical colleges and hospitals as well. It is said that such a move intends to strengthen the surveillance and ensure tax benefits are meant for right causes.
These new regulations would be applicable for universities, medical colleges, hospitals and any other form of charitable entities functioning under the umbrella of tax exemption under 12A or 10(23C). Thus, henceforth, all charitable institutions and trusts will be required to maintain an exhaustive list of documents to get income tax exemptions. These include documents pertaining to payments made domestically or abroad, PAN/Aadhaar of voluntary contributors, projects undertaken, loan taken or given, investments made, etc., details of which are given below:
Fr Alex G. SJ
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