Home Audit & Assurance CBDT clarifies provisions under Finance Act 2023 relating to Donations made by a Trust/ Institution to another Trust/ Institution

CBDT clarifies provisions under Finance Act 2023 relating to Donations made by a Trust/ Institution to another Trust/ Institution

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CBDT clarifies provisions under Finance Act 2023 relating to Donations made by a Trust/ Institution to another Trust/ Institution

CBDT clarifies provisions underneath Finance Act 2023 regarding Donations made by a Belief/ Establishment to a different Belief/ Establishment

Revenue from any fund, establishment, or belief, any college or different instructional establishment, or any hospital or different medical establishment referred to in specified sub-clauses of part 10 (23C) of the Revenue-tax Act, 1961 (the ‘Act’), or any belief or establishment registered underneath part 12AA/12AB of the Act, is exempt, topic to the success of sure situations laid out in varied sections of the Act.

In response to the Finance Act of 2023, donations made by a belief or establishment (aside from in direction of corpus) are solely acknowledged as functions for charitable or non secular functions as much as 85% of the quantity donated.

The Central Board of Direct Taxes (CBDT) has obtained representations elevating issues about whether or not the remaining 15% of donations to different trusts or establishments can be taxable or are eligible for 15% accumulation, on condition that the funds wouldn’t be obtainable as a result of they’d already been disbursed.

CBDT has examined the matter just about the problems raised above.

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