6:29 AM
Govt to look into abolishment of l-T exemption to charity organisations
GOVERNMENT will look into the abolishment of Income Tax exemptions to charity organisations in its budgetary exercise for the year 2014, according to an RTI response from the Central Board of Direct Taxes.
It also says that it could not trace files related to proposals for giving income tax exemptions to political panics on donations and fundings received by them.
"Records available with TPL division were thoroughly searched. However, no files records relating to introduction of die referred provisions from exempting political parties from income ux on funding'donai ions received by,'made to ihcm could be traced," the response said. RTI activist Subhash Agrawal had made a suggestion to the Central Board of Direct Taxes that Income Tax exemption (or donations made to and received by NGOs. for chanty and other purposes should be abolished.
"Preventing revenue loss by abolishing all types of Income Tax exemptions in respect to NGOs. charitable Institutions, political parties etc will be provide added funds to Government for development purposes." be had said.In response to his RTI application seeking action taken on his sug gestion. the Central Board of Direct Taxes said. "The suggestions presetted by you in regard to abolishing of income tax exemptions for charity and other purposes, the same are being taken up in the form of prebudget memorandum in respect of the upcoming budgetary exercise for 2014."
Section 21 15) of the Income Tax Act. 1961 defines "charitable purpose" to include the following: (i) Relief of the poor. Education. Medical relief, and the advancement of any other object of general public utility.
However, a public utility activity cannot be treated as "charitable" if it involves carrying out of any activity in the nature of trade, commerce or business.
It also says that it could not trace files related to proposals for giving income tax exemptions to political panics on donations and fundings received by them.
"Records available with TPL division were thoroughly searched. However, no files records relating to introduction of die referred provisions from exempting political parties from income ux on funding'donai ions received by,'made to ihcm could be traced," the response said. RTI activist Subhash Agrawal had made a suggestion to the Central Board of Direct Taxes that Income Tax exemption (or donations made to and received by NGOs. for chanty and other purposes should be abolished.
"Preventing revenue loss by abolishing all types of Income Tax exemptions in respect to NGOs. charitable Institutions, political parties etc will be provide added funds to Government for development purposes." be had said.In response to his RTI application seeking action taken on his sug gestion. the Central Board of Direct Taxes said. "The suggestions presetted by you in regard to abolishing of income tax exemptions for charity and other purposes, the same are being taken up in the form of prebudget memorandum in respect of the upcoming budgetary exercise for 2014."
Section 21 15) of the Income Tax Act. 1961 defines "charitable purpose" to include the following: (i) Relief of the poor. Education. Medical relief, and the advancement of any other object of general public utility.
However, a public utility activity cannot be treated as "charitable" if it involves carrying out of any activity in the nature of trade, commerce or business.
Posted in: News 2014
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