Section 80G

Cash Transaction Restrictions on Charitable Trusts under Income Tax

Income Tax - A charitable or religious institution has substantial source of receipts in form of donations. Such donations may be corpus or voluntary. The Income Tax Law provides blanket exemption to corpus contributions (received for a particular purpose such as for construction of a building) whereas it requires application of voluntary contribution...

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Be Careful…while making transactions in cash!!

Income Tax - Krishna, Today is 13th October last day for the promotion of Elections. In the chaos of election, crores of rupees were ceased. During this period Election Commission has laid many restrictions on cash transaction. But what are the provisions of cash transactions under Income Tax Act?...

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Income Tax Saving Investments For Salaried Individuals

Income Tax - Many individuals who are receiving income under the head salary ask about the methods which can legally help in saving tax on salaried people. It is a fact that are not allowed to claim expenses except those specified under the Income Tax Act. Therefore, they can only invest in or claim certain expenses which are […]...

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Concept of NGO and Income Tax Provisions

Income Tax - Trust, Society and Section 8 Company can seek registration u/s 12A to claim exemption under provisions of Income Tax Act’1961, if certain conditions are satisfied. Section 12A deals with registration of trust and section 12AA deals with procedure for registration of trust....

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New norms for registration of Trusts and Issues

Income Tax - Introduction There is sea change in provisions relating to registration of trusts. Finance Act 2020 has set out norms for registration of Trusts. This article discusses these new norms in context of: 1. Trusts registered under old regime 2. Provisional registration of new trusts 3. Final registration of provisionally registered trusts 4. ...

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Deferment for Approval/ Registration of Charitable Trusts & Exempt Institutions

Income Tax - Deferrement of Procedure for Approval/ Registration/Notifications of certain entities U/s 10(23C), 12AA, 35 & 80G of Income Tax Act, 1961 till 01st October,2020 The Finance Act, 2020 has introduced certain new compliance burdens on Charitable Trusts and Exempt Institutions. The Budget 2020 has amended certain provisions of the Inc...

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Donation to PM CARES Fund to be fully exempt under section 80G

Income Tax - The finance minister, Nirmala Sitharaman, at a press conference dated 24th March 2020 has announced that taxpayers can complete their tax-saving exercise and statutory compliances for FY 2019-20 till June 30, 2020. The earlier deadline was March 31, 2020. It’s a big relief to the Taxpayers given by the government. But still, it has a [&...

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Publicise Income Tax Exemption to PM's Relief Fund – PMO

Income Tax - Prime Minister's National Relief Fund (PMNRF) was constituted in January, 1948 to assist displaced persons from Pakistan. The resources of the PMNRF are now utilized primarily to render immediate relief to the affected families of those killed/ injured in natural calamities like floods, cyclones and earthquakes, etc, or in the major accid...

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CBDT clarification on tax benefits for NGOs and charitable institutions

Income Tax - The government has clarified that institutions like NGOs, charitable institutions and others who are eligible for tax benefits and can also issue tax benefit receipts to those paying donations would not need to renew their status unless it is withdra...

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Weighted Deduction Increased to 175% W.E.F 1st April 2010 For Sum Paid out of Buisiness Income to University and other Educational Institutions for Scientific Research And Development

Income Tax - The Income Tax Act, 1961, before amendment by Finance Act, 2010, allowed a weighted deduction of 125% for any sum paid out of business income to a university, college or other institution in case the amount is used for scientific research. Similar weighted deduction of 125% was also allowed for any sum paid out of business income to a nat...

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CSR expense Eligible for Section 80G Deduction on fulfilling conditions

Goldman Sachs Services Pvt. Ltd. Vs JCIT (ITAT Bangalore) - The issue under consideration is whether CSR is also eligible for deduction u/s 80G of the Act subject to assessee satisfying the requisite conditions prescribed for deduction u/s 80G?...

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Bar Council eligible for Registration u/s 12AA & Exemption u/s 80G

Bar Council of Delhi Vs CIT (Exemption) (ITAT Delh) - The issue under consideration is whether the CIT is correct in rejecting the application filed by Bar Council of Delhi seeking registration u/s 12A (a) of the Income Tax Act?...

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ITAT dismisses ex-parte order of CIT denying Section 80G exemption

Dnyanranjan Shikshan Prasarak Mandal Vs CIT Exemptions (ITAT Pune) - Whether the ex-parte order of the CIT(Exemptions) denying 80G exemption is justified in law? ITAT dismissed ex-parte order of CIT(E) on the basis of principles of natural justice...

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Deduction u/s 80G cannot denied merely because such payment forms part of CSR

First American (India) Pvt. Ltd Vs ACIT (ITAT Bangalore) - The issue under consideration is that whether the expenditure incurred for CSR will also be qualified for deduction under section 80G?...

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Section 80G(5) Registration cannot be denied if CIT(E) was satisfied with objects / activities of assessee 

Bharat Vikas Parishad Maharana Pratap Nyas Vs CIT (ITAT Delhi) - Bharat Vikas Parishad Maharana Pratap Nyas Vs CIT (ITAT Delhi) After considering the rival submissions, we are of the view that Order under section 80G(5) denying approval to the assessee cannot be sustained in Law. It is not in dispute that assessee has been granted registration under section 12AA...

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New Procedure for registration, approval U/s.10(23C), 12AA, 35 & 80G deferred

Release ID: 1622387 - (09/05/2020) - CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be deferred to 1st October, 2020. Accordingly, the entities approved/ registered/ notified under section 10(23C), 12AA, 35 and 80G of the Income-tax Act, 1961 (the Act) would b...

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CBDT notifies Shri Ram Janmabhoomi Teerth Kshetra U/s. 80G(2)(b)

Notification No. 24/2020-Income Tax [S.O. 1434(E)] - (08/05/2020) - CBDT notifies SHRI RAM JANMABHOOMI TEERTH KSHETRA to be place of historic importance and a place of public worship of renown for the purposes of section 80G(2)(b) from the year F.Y. 2020-2021, relevant to the Assessment Year 2021-2022....

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CBDT allows donations to PM cares fund through form 16

F. No. 178/7/2020-ITA-1 - (09/04/2020) - Submission of certificate for claiming deductions U/s. 80G of the Income-tax Act, 1961 in respect of donation made by an employee to Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)...

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CBDT revise forms and rules of Approval of Application U/s. 80G & 10(23C)

Notification No. 60/2019-Income Tax [S.O. 3215(E).] - (05/09/2019) - Notification No. 60/2019-Income Tax- CBDT amends rules 2C and 2CA related to Application for the purpose of grant of approval for the exemption under sub-clause (iv), sub-clause (v), sub-clause (vi) and sub-clause (via) of clause (23C) of section 10 and Rule 11AA related to Requirements for approval...

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Sec. 80G CBDT notifies ‘Arulmigu Kapaleeswarar Thirukoil’ temple

Notification No. 87/2017-Income Tax [S.O. 3441(E)] - (27/10/2017) - Central Government hereby notifies Arulmigu Kapaleeswarar Thirukoil, Mylapore, Chennai, to be place of historic importance and a place of public worship of renown throughout the state of Tamil Nadu for the purposes of the said section....

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Recent Posts in "Section 80G"

Cash Transaction Restrictions on Charitable Trusts under Income Tax

A charitable or religious institution has substantial source of receipts in form of donations. Such donations may be corpus or voluntary. The Income Tax Law provides blanket exemption to corpus contributions (received for a particular purpose such as for construction of a building) whereas it requires application of voluntary contribution...

Read More
Posted Under: Income Tax |

Be Careful…while making transactions in cash!!

Krishna, Today is 13th October last day for the promotion of Elections. In the chaos of election, crores of rupees were ceased. During this period Election Commission has laid many restrictions on cash transaction. But what are the provisions of cash transactions under Income Tax Act?...

Read More
Posted Under: Income Tax | ,

Income Tax Saving Investments For Salaried Individuals

Many individuals who are receiving income under the head salary ask about the methods which can legally help in saving tax on salaried people. It is a fact that are not allowed to claim expenses except those specified under the Income Tax Act. Therefore, they can only invest in or claim certain expenses which are […]...

Read More
Posted Under: Income Tax |

Concept of NGO and Income Tax Provisions

Trust, Society and Section 8 Company can seek registration u/s 12A to claim exemption under provisions of Income Tax Act’1961, if certain conditions are satisfied. Section 12A deals with registration of trust and section 12AA deals with procedure for registration of trust....

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Posted Under: Income Tax |

CSR expense Eligible for Section 80G Deduction on fulfilling conditions

Goldman Sachs Services Pvt. Ltd. Vs JCIT (ITAT Bangalore)

The issue under consideration is whether CSR is also eligible for deduction u/s 80G of the Act subject to assessee satisfying the requisite conditions prescribed for deduction u/s 80G?...

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New norms for registration of Trusts and Issues

Introduction There is sea change in provisions relating to registration of trusts. Finance Act 2020 has set out norms for registration of Trusts. This article discusses these new norms in context of: 1. Trusts registered under old regime 2. Provisional registration of new trusts 3. Final registration of provisionally registered trusts 4. ...

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Posted Under: Income Tax |

Registration of Charitable and Religious trust under income tax Act 1961 as amended by Finance Act 2020

Income tax Act 1961 provides exemption to the Public Charitable trust and Religious trust (herein after referred to as Trust in this article)u/s 11(exemption from Income from property held for charitable or religious purposes) and u/s 12 ( exemption Income of trusts or institutions from contributions). However to claim exemption under the...

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Posted Under: Income Tax |

An overview on different types of Income Tax Deductions in India

Income tax can be defined as the percentage of your income which you pay to the government in order to fund infrastructural development. Taxes account for a major portion of the income which is earned by the Indian government. In most cases these taxes can prove to be very harsh on the taxpayer. Hence the government has made some provisio...

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Posted Under: Income Tax |

Trust Registration under section 10(23C), 12A, 12AA, 12AB, 80G

Key Notes on Direct Taxation (Income Tax) For UNION BUDGET 2020 FOR APPLICATION AND VALIDITY OF REGISTRATION FOR TRUST/INSTITUTION U/S 10(23C), SECTION 12A, 12AA, 12AB, 80G of the Income Tax Act, 1961. The process of approval and registration of trusts, institutions, funds, university, hospital etc. proposed to be rationalised with effect...

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Posted Under: Income Tax |

Bar Council eligible for Registration u/s 12AA & Exemption u/s 80G

Bar Council of Delhi Vs CIT (Exemption) (ITAT Delh)

The issue under consideration is whether the CIT is correct in rejecting the application filed by Bar Council of Delhi seeking registration u/s 12A (a) of the Income Tax Act?...

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Decoding Various Tax provisions for Charitable Trust/Institutions

Section 12A/12AA of The Income Tax Act, 1961 deals with registration of Charitable Trust/Institutions. In order to get the Trust/institution registered under Section 12A/12AA, the application should be submitted to Commissioner of Income Tax....

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Posted Under: Income Tax |

Income Tax Law Relating To Cash Transactions

A number of new provisions have been introduced in the Income Tax Act from time to time to put restrictions on cash transactions as well as to incentivise the non-cash transactions. Cash transactions have always played a major role in the Indian Economy and consistently were responsible for generation and accumulation of Black Money. The ...

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Posted Under: Income Tax |

Myths and misconceptions about Personal Income tax

Gifts received: Gifts received from specified relatives are exempt from income tax, and there is no upper limit also. Similarly, gifts of any amount and from anyone received during your marriage are totally tax-free. Similar is the case with the gifts received under a Will or by way of an inheritance, or from a registered charitable or e...

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Posted Under: Income Tax |

ITAT dismisses ex-parte order of CIT denying Section 80G exemption

Dnyanranjan Shikshan Prasarak Mandal Vs CIT Exemptions (ITAT Pune)

Whether the ex-parte order of the CIT(Exemptions) denying 80G exemption is justified in law? ITAT dismissed ex-parte order of CIT(E) on the basis of principles of natural justice...

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11 things to know Taxation & other Laws (Relaxation of Certain Provisions) Ordinance, 2020

Features of the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 1. Last date for filing belated/revised tax return for Financial Year 2018-19 has been extended from 31st March, 2020 to 30th June, 2020 2. The due date for completion/passing/issuance/filing of any proceeding/order/notice or approval order or sanct...

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Posted Under: Income Tax |

Section 80G Deduction For Donation made

The amount donated towards charity attracts deduction under section 80G of the Income Tax Act. Section 80G has been in the law book since financial year 1967-68 and it seems it's here to stay. Several deductions have been swept away but the tax sop for donations appears to have survived the axe. The main features of tax benefit with respe...

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Deduction u/s 80G cannot denied merely because such payment forms part of CSR

First American (India) Pvt. Ltd Vs ACIT (ITAT Bangalore)

The issue under consideration is that whether the expenditure incurred for CSR will also be qualified for deduction under section 80G?...

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Decoding the End of Perpetuity Regime for NGOs, Charitable Trusts etc.

The Finance Act 2020 has brought in some dynamic changes in respect of the exempted Trusts, Societies, NGOs, Charitable Trusts, Section 8 Companies including educational, medical and/or religious institutions complying with the certain rules of registration under the Income Tax Act, 1961 (the Act). The registrations were perpetuity in nat...

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Posted Under: Income Tax |

Deferment for Approval/ Registration of Charitable Trusts & Exempt Institutions

Deferrement of Procedure for Approval/ Registration/Notifications of certain entities U/s 10(23C), 12AA, 35 & 80G of Income Tax Act, 1961 till 01st October,2020 The Finance Act, 2020 has introduced certain new compliance burdens on Charitable Trusts and Exempt Institutions. The Budget 2020 has amended certain provisions of the Inc...

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Posted Under: Income Tax |

New Procedure for registration, approval U/s.10(23C), 12AA, 35 & 80G deferred

Release ID: 1622387 (09/05/2020)

CBDT has decided that the implementation of new procedure for approval/ registration/notification of certain entities shall be deferred to 1st October, 2020. Accordingly, the entities approved/ registered/ notified under section 10(23C), 12AA, 35 and 80G of the Income-tax Act, 1961 (the Act) would be required to file intimation within thr...

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CBDT notifies Shri Ram Janmabhoomi Teerth Kshetra U/s. 80G(2)(b)

Notification No. 24/2020-Income Tax [S.O. 1434(E)] (08/05/2020)

CBDT notifies SHRI RAM JANMABHOOMI TEERTH KSHETRA to be place of historic importance and a place of public worship of renown for the purposes of section 80G(2)(b) from the year F.Y. 2020-2021, relevant to the Assessment Year 2021-2022....

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Restrictions on Cash Transactions under Income Tax Act, 1961

In order to restrict cash transactions, the government has come out with several provisions and related rules to prohibit various types of cash payments in the Finance Acts. The effects of restrictions under provisions of income tax act are as follows: Restrict cash transactions by disallowances of expenses or deduction under chapter VIA ...

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Posted Under: Income Tax |

Charitable trust/institutions- No more never ending exemption benefits

Presently, the charitable trusts/Institution are enjoying the perpetual benefit of zero taxation on income earned out of property held by such trust/Institution. Interestingly, once the registration under section 10(23C)/12AA/35/80G/ is notified/granted, will remain in force till the CG/Commissioner of Income tax basis the documents calle...

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Posted Under: Income Tax |

Budget 2020: Amendments related to Non-Profit organization (NPO)

FM has proposed various amendments in Union Budget 2020 which includes Amendments in Section 12A, Section 80G, 12AA etc related to Registration of Charitable Trust or Non-Profit organization (NPO). Article discusses the same in detail- Question: My NGO has life time validity of 12A and 80G certificate, should I apply for fresh registratio...

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Posted Under: Income Tax |

Cash Transaction Limit – When to Say No

Gradually, the Indian Economy is getting digitalized and ultimately moving towards a cashless economy. Electronic transactions ensure a clear money trail and make it very difficult for tax evaders. In a bid to curb black money as well as limit the number of cash transactions, the Government from time to time has introduced many new [&hell...

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Posted Under: Income Tax |

Cash Transaction – Limit & Consequences of Non-Compliance under Income Tax Act

Cash transaction leaves no trail of the payer that causes tax evasion & black money. It affects the Indian economy by dual aspect one is revenue deficit to government and another one is unaccounted money that cannot flow in the economy.  Both of these problems terribly effects the development of a country. That’s why government [&h...

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Posted Under: Income Tax |

Checklist of Important Tasks to Do in FY 2020-21

1. The composition scheme is applicable to manufacturers or traders whose taxable business turnover is up to Rs 1.5 crore (Rs 75 lakh in case of Specified States). A service provider can also opt for the scheme if his taxable turnover is up to Rs 50 lakh. This limit is to be checked in the […]...

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Posted Under: Income Tax |

Donation to PM CARES Fund by Corporates & its Employees under Consolidated Plan

There are two major benefits which are available under the Income Tax Act, 1961 and Companies Act, 2013, in respect of the consolidated amount of donation i.e. 1. U/s 80G, 100% deduction is available to the employees and employers on the part of their contribution. 2. The amount contributed by the employers is eligible for computati...

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Posted Under: Income Tax |

Contribution to PM CARES Fund

> A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected  from the outbreak of Corona virus. Therefore, section 80G has amended to provide the same tax treatment to PM CARES Fund as available to Prime Minister Natio...

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Posted Under: Income Tax |

Paradigm shift in registration of NGOs

The approach of the government towards the NGO sector used to be lenient but today the position is changing as the government is tightening the laws and regulatory controls over NGOs every other day. It has to be appreciated that NGOs play an important role in the society and the income of these institutions is […]...

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Posted Under: Income Tax |

PM Cares Fund – Tax Benefits and All You Wanted To Know About

The Taxation and other laws (Relaxation of certain provisions) Ordinance , 2020 has made amendments to section 80G of the Income tax act, 1961 thereby making contributions to this PM Cares fund eligible for 100% deduction under Section 80G(1) read with clause (iiia) of section 80G(2)....

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Posted Under: Income Tax |

CBDT allows donations to PM cares fund through form 16

F. No. 178/7/2020-ITA-1 (09/04/2020)

Submission of certificate for claiming deductions U/s. 80G of the Income-tax Act, 1961 in respect of donation made by an employee to Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)...

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Section 80G No deduction if donation in cash exceeds Rs. 2000

A new clause has been added to sub-section (5C) of Section 80G vide Finance Bill 2012 where no deduction shall be allowed under this section in respect of donation of any sum exceeding ten thousand rupees, unless such sum is paid by any mode other than cash. As per the new sub-section (5D) to Section 80G any payment exceeding a sum of ten...

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Posted Under: Income Tax |

Donation made to PM CARES Fund eligible for 100% deduction

The pandemic of COVID-19 has engulfed the entire world and has posed serious challenges for the health and economic security of millions of people worldwide. In India too, the spread of coronavirus has been alarming and is posing severe health and economic worries for our country. Keeping in mind the need for having a dedicated […]...

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Posted Under: Income Tax |

Donation to PM CARES Fund to be fully exempt under section 80G

The finance minister, Nirmala Sitharaman, at a press conference dated 24th March 2020 has announced that taxpayers can complete their tax-saving exercise and statutory compliances for FY 2019-20 till June 30, 2020. The earlier deadline was March 31, 2020. It’s a big relief to the Taxpayers given by the government. But still, it has a [&...

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Posted Under: Income Tax |

Donation to PM CARES Fund -100% deduction- Section 80G

A special fund ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)’ has been set up for providing relief to the persons affected by the outbreak of Coronavirus. Contribution towards PM CARE Fund was eligible for 50% deduction in view of it being notified under section 80G(5), as again...

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Posted Under: Income Tax |

Union Budget- 2020: New Compliances for Charitable Trust & Institutions

Impact of Budget 2020 Finance Bill on charitable institutions:- 1) Re-validation of existing registrations All the existing charitable and religious institutions already registered under Section 12A (trusts and institutions registered prior to 1996), Section 12AA (trusts and institutions registered after 1996), Section 10(23C) and Section...

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Posted Under: Income Tax |

Check List for Registration U/s. 12A & 80G of Income Tax Act,1961

Both applications can be applied together or it can also be applied separately also. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration is must for applying application for registration u/s 80G of Income Tax Act, 1961....

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Posted Under: Income Tax |

Impact of budget 2020 on charitable trust/Institutions

While a trust is registered under Section 12AA, the registration referred to therein shall be inoperative from the date of approval of the trustor organization pursuant to Section 10(23C) or Section 10(46) or from the date of entry into force of this proviso, i.e. 01/06/20020 as previously stated. New Article 12A(1)(ac) was introduced pro...

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Posted Under: Income Tax |

Now is the time to attack! Start firing bullets at your taxes

Act before March-end, so that you don’t have to regret in July! So many clients put their palms on their head, when it is the time to pay taxes and file return, in July. Taxes have already fired at them, they have done nothing to save themselves against the tax shots....

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Posted Under: Income Tax |

Budget 2020: Impact on NGO or Charitable Organisations

The Union Budget and Finance Bill 2020 has proposed major changes for charitable trusts and institutions like renewal of 12AA and 80G registration, furnishing a quarterly statement of donor wise donations, issue of a certificate to all the donors, etc. All such proposed changes are explained below: Section 10(23C): Every approved fund or ...

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Posted Under: Income Tax |

Budget Highlights for Trusts Registered under section 12AA

Impact of budget 2020 on Charitable trust U/S-12AA 1. Re-validation of Existing registrations -The process will be online and the new online form will particularly focus on whether the charitable activities of the trust or institution are genuine. -Once the online forms are ready there will be a window of three months within which applica...

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Posted Under: Income Tax |

Analysis of Budget 2020: Impact on Charity Institution

For development sector, on the one-hand, the budget has covered various loopholes but on the other side, it has burdened the non-profit sector with renewal formalities, donation reconciliation requirements and other registration formalities....

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Posted Under: Income Tax |

Major Income Tax Proposals for Charitable Trusts & Institutions: Budget 2020

The process of approval and registration of trusts, institutions, funds, university, hospital etc. proposed to be rationalised with effect from 1.6.2020. Now, the approval or registration or notification for exemption will be valid for a period not exceeding five years at one time;...

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Posted Under: Income Tax |

Proposed Provisional Registration/ Approval U/s. 12AB, 10(23C) & 80G- Issues

Budget 2020: Concerns / Issues As To Proposed Provisional Registration/ Approval Under Section 12AB, Section 10(23C) & Section 80G Introduction : It has been proposed under the Finance Bill, 2020 that w.e.f. 01st June, 2020 the registration / approval to the charitable / religious institutions, educational institutions, medical instit...

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Posted Under: Income Tax |

New Section 12AB | Finance Bill 2020 | Charitable Trusts | Amendment in Section 12AA/ 80G/ 80GGA

Finance Minister presented the Union Budget 2020 wherein she proposed substantial amendments for granting exemptions to the charitable / religious trusts institutions etc. Under the new tax regime, she proposed to amend Section 10(23C), Section 11, Section12A, Section12AA, Section 80G and proposed to insert a new Section 12AB. All these a...

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Posted Under: Income Tax |

Budget 2020- Demystifying hidden elements behind Budget Speech

Hello everyone, hope you all are doing well. This blog focuses on exploring the unknown elements of the Union Budget 2020-21 and analyses impact of proposed changes in Tax on Indian economy. Nirmala Sitharaman (Finance Minister (FM)) played very safely in his debut budget last time and kept distance from crucial issues to serve justice [&...

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It’s Not Too Late To Save tax!

The deadline for making tax saving investments is 31 March. But, there is still time to adopt last minute tax saving tips to claims tax benefits offered by the Government. This article discusses some tax investment avenues which can be utilized before 31 March to lower one’s overall tax liability....

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Posted Under: Income Tax |

5 Important points related to Charitable / religious trusts

Finance Act’2017 had made some major changes relating to Charitable and religious trusts. In this Article we have discussed five major amendments which are affecting Charitable and religious trusts....

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Posted Under: Income Tax |

Benefits & Procedure for Registration u/s 80G of Income Tax Act,1961

Important Points related to Section 80G of Income Tax Act, 1961: It is important to note that when registration is granted under section 12A, it does not mean that section 80G approval has been given i.e. registration under section 12A will not provide automatic approval under section 80G. It has to be applied separately....

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Posted Under: Income Tax |

Benefits of Registration u/s 12A of Income Tax Act, 1961

Section 2(15) defines Charitable Purpose and sections 11, 12, 12A, 12AA and 13 of the Income –tax Act, are the main sections that deal with scheme of taxation exemption in respect of income of charitable or religious trusts/institution....

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Posted Under: Income Tax |

Deduction under section 80G of Income Tax Act

Overall, most of the assessee generally would have the basic know-how relating to deduction available under section 80G of the Income Tax Act. Broadly speaking, the deduction under section 80G is available in respect of the contribution / donations made to the specified charitable institutions or funds etc. The current article would try...

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CBDT revise forms and rules of Approval of Application U/s. 80G & 10(23C)

Notification No. 60/2019-Income Tax [S.O. 3215(E).] (05/09/2019)

Notification No. 60/2019-Income Tax- CBDT amends rules 2C and 2CA related to Application for the purpose of grant of approval for the exemption under sub-clause (iv), sub-clause (v), sub-clause (vi) and sub-clause (via) of clause (23C) of section 10 and Rule 11AA related to Requirements for approval of an institution or fund under section...

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Section 80G(5) Registration cannot be denied if CIT(E) was satisfied with objects / activities of assessee 

Bharat Vikas Parishad Maharana Pratap Nyas Vs CIT (ITAT Delhi)

Bharat Vikas Parishad Maharana Pratap Nyas Vs CIT (ITAT Delhi) After considering the rival submissions, we are of the view that Order under section 80G(5) denying approval to the assessee cannot be sustained in Law. It is not in dispute that assessee has been granted registration under section 12AA of the I.T. Act, 1961, by DIT […...

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Cashless Economy And The Role of Banks

Traditionally, Indian Economy had been an economy where cash has been the King in the settlement between various parties. This was mainly because organized banking had not spread throughout the length and breadth of the country. However, the nationalization of the banks in the year 1969, by the Central Government to some extent had increa...

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Posted Under: Income Tax |

General Exemptions & Deductions for Salaried employees

General Exemptions & Deductions available for salaried employees for FY 2018-19 i.e. AY 2019-20 includes House Rent Allowance, Interest on Home Loan, Standard Deduction and Chapter VI-A deductions which includes- Section 80C, Section 80CCC – Pension Funds, Section 80CCD – National Pension Scheme (NPS), Section 80CCE, Section 80D ...

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Posted Under: Income Tax |

Section 80G approval cannot be rejected on the ground that society is not engaged in charitable activities

Shiv Raj Sharma Shiksha Samiti Bilaspur Vs CIT (ITAT Lucknow)

Shiv Raj Sharma Shiksha Samiti Bilaspur Vs CIT (ITAT Lucknow) It is well settled position of law that at the time of granting approval under Section 80G of the Act, what is to be examined is the object of the trust and so far as the aspect of income is concerned, the same can be […]...

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Application U/s. 80G(5) cannot be rejected for sufficiency of funds with an institution

Raghu Nath Rai Memorial Educational & Charitable Trust Vs CIT(E) (ITAT Chandigarh)

CIT(E) was not justified in rejecting approval sought by assessee under section 80G(5) on the allegation that assessee had sufficient disposable fund because sufficiency of funds available with an institution seeking the approval is not mentioned as condition under section 80G, which needs to be looked into before granting approval....

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Tax Deduction U/s. 80G for Donations towards Social Causes

Have you donated money for charity, social or philanthropic purposes, or, have made contributions towards a National Relief Fund? If yes, then you could use these donations to reduce your tax outgo. The Income Tax Act encourages charitable deeds towards the poor and needy, and offers donors tax benefits under Section 80G. Read on to find...

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Posted Under: Income Tax |

This Independence Day, let’s start contributing to Indian Security forces actively

Deduction under Section 80G: Every taxpayer can make contribution/donation to specific funds in order to claim deduction from his Gross Total Income to reduce the tax liability. Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act....

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Lesser Known Tax Saving Tips / Deductions

For most of the people 'tax savings' brings to mind life insurance, PPF, NSC, Sukanya Samriddhi Account and equity-linked savings scheme, among others, that qualify for tax deduction under Section 80C of the Income-Tax Act. An individual can claim tax deductions of up to Rs 1.50 lakh (One Lakh Up to AY 2014-15) under 80C. ...

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Deduction we use to forget while computing taxable income

Deduction for Medical treatment of dependent :- Under Section 80DD of the Act, where an individual has incurred expenditure for the medical treatment, training and rehabilitation of a dependent, being a person with disability or has paid or deposited any amount under prescribed scheme for the maintenance of dependent, such individual will...

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Denial of application for approval u/s 80G justified as society spends more than 5% of Total Income on religious activities

Bhuvaneshwari Kali Thakuranir Seva Samity Vill Vs Commissioner of Income Tax (ITAT Kolkata)

This is an appeal by the Assessee directed against the order dated 22.12.2016 of the ld. CIT, Exemptions (ld. CIT(E)), Kolkata relating to A.Y.2016-17, wherein the ld. CIT(E) has passed an order rejecting grant of the approval u/s 80G of the Income-tax Act, 1961 (here nafter referred to as the Act)....

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Deductions U/s 80G for Donation

Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations are not eligible for deduction under section 80G. Only donations made to prescribed funds qualify as a deduction....

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Posted Under: Income Tax |

Certificate U/s. 80G would not automatically lead to exemption from purview of Payment of Bonus Act, 1965

Batra Hospital Employees Union Vs. Batra Hospital & Medical Research (Delhi High Court)

Batra Hospital Employees Union Vs. Batra Hospital & Medical Research (Delhi High Court) It would be hazardous to presume that every organization, which is certified under Section 80-G of the Income Tax Act, would, of necessity, be entitled, ipso facto, to immunity from the applicability of the Payment of Bonus Act. There is substance,...

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Approval u/s 80G(5) cannot be denied at initial stages for not undertaking any activity or Substantial Activity

Mattapalli Chalamayya Charitable Trust Visakhapatnam Vs CIT (ITAT Visakhapatnam)

Mattapalli Chalamayya Charitable Trust Visakhapatnam Vs CIT (ITAT Visakhapatnam) If the activities of the trust are genuine, at the stage of commencement of institution, registration has to be granted automatically and claim u/s 80G of the Act can be followed with grant of registration. Ld. Commissioner (Exemptions) did not reject the req...

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Sec. 80G CBDT notifies ‘Arulmigu Kapaleeswarar Thirukoil’ temple

Notification No. 87/2017-Income Tax [S.O. 3441(E)] (27/10/2017)

Central Government hereby notifies Arulmigu Kapaleeswarar Thirukoil, Mylapore, Chennai, to be place of historic importance and a place of public worship of renown throughout the state of Tamil Nadu for the purposes of the said section....

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CBDT notifies ‘Ariyakudi Sri Srinivasa Perumal Temple, Chennai’ for sec. 80G deduction

Notification No. 41/2017-Income Tax [S.O. 1714(E)] (29/05/2017)

Central Governmentnotifies Ariyakudi Sri Srinivasa Perumal Temple, Kottivakkam, Chennai,to be place of historic importance and a place of public worship of renown throughout the state of Tamil Nadu for the purposes section 80G....

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Mere surplus generation not fatal to exemption u/s 10(23C)(vi)(via)/ 80G if same is utilized for charitable purposes

CIT Vs. Gulab Devi Memorial Hospital (Punjab & Haryana High Court)

In this case Punjab & Haryana High Court upheld the The law laid down in Visvesvaraya Technological University vs. ACIT 384 ITR 37 (SC)  that  generation of surplus is not fatal to the grant of exemption under section 10(23C)(vi)(via)/ 80G of Income Tax Act, 1961 if such surplus is utilized for charitable purposes. In this […...

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No Section 80G deduction if cash deonation exceeds Rs. 2000

Under existing provisions of section 80G, deduction is not allowed in respect of donation made of any sum exceeding Rs.10,000, if the same is not paid by any mode other than cash....

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Posted Under: Income Tax |

ITR-7 data related to exemptions approved u/s 35 and 80G

F.No. DIT(S)-III/2015-16/e-Filing Txn/ (23/09/2016)

DIRECTORATE OF INCOME TAX (SYSTEM) ARA Center, Ground Floor, E-2, Jhandewalan Extension, New Delhi – 110055 Dated : 23-Sep-2016 F.No. DIT(S)-III/2015-16/e-Filing Txn/ To, The Chief Commissioner of Income-Tax (Exemption) Pratyaksh Kar Bhawan, Block E-2, 25th Floor, Civic Centre, J.L. Nehru Marg, New Delhi — 110002.. Sub: : ITR-7 da...

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Registration U/s. 12AA/ 80G cannot be denied by examining issues which are relevant for assessments

Hari Om Sewa Dal Vs CIT(Exemptions) (ITAT Delhi)

Hari Om Sewa Dal Vs. CIT(Exemptions)-ITAT Delhi- We find from the order of the Commissioner of Income Tax (Exemptions) that the registration under Section 12AA of the Act was denied to the appellant society solely on the ground that the appellant society had been claiming...

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Approval u/s 80G(5) could be granted if certificate u/s 12A is not withdrawn

Govats Foundation Vs ITO (Exemption) (ITAT Hyderabad)

In the case of Govats Foundation v ITO (Exemption) it is held by ITAT-Hyderabad that the approval u/s 80G(5) could be granted to charitable institution if the certificate granted u/s 12A has not been withdrawn....

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Section 2(15) Hostel accommodation provided to various invitees could be considered as commercial activity? 

India International Centre Vs ADIT (ITAT Delhi)

The predominant activities of the centre was not to earn income but to provide facilities for disseminating or exchanging knowledge as per the object of the society The dominant object of the assessee is definitely for the well being of public at large by organizing various seminars for...

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Permission u/s 11(1)(c) for rendering help to victims of Nepal Earthquake

The Central Board of Direct Taxes has decided to fast track all applications made u/s 11(1)(c) of the Income Tax Act, 1961 seeking approval for rendering help to the victims of earthquake in Nepal. It will be the endeavor of the Department to process these applications within two working days of receiving the completed applications....

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Posted Under: Income Tax |

Help in Nepal & Get tax Benefits in India

Krishna, The whole world has trembled due to the earthquake in Nepal. Due to this earthquake Nepal has suffered terrible financial losses. To come out of this disaster at every level everyone is contributing something or the other. If Indian Citizens help Nepal from India in any manner then will they get any benefits in Income Tax? ...

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Posted Under: Income Tax |

Income Tax Deductions for A.Y. 2014-15/ 2015-16 for Salaried

The Income Tax Act provides that on determination of the gross total income of an assessee after considering income from all the heads, certain deductions therefrom may be allowed. These deductions detailed in chapter VIA of the Income Tax Act must be distinguished from the exemptions provides in Section 10 of the Act. While the former ar...

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Posted Under: Income Tax |

Sec. 80G deduction for Donations to Swachh Bharat Kosh & Clean Ganga Fund

It is proposed to provide that donations made by any donor to the Swachh Bharat Kosh and donations made by domestic donors to Clean Ganga Fund will be eligible for a deduction of hundred per cent from the total income. However, any sum spent in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Compan...

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Posted Under: Income Tax |

Section 80G- 100% deduction for Donation to National Fund for Control of Drug Abuse

Budget 2015-16 One hundred per cent deduction for National Fund for Control of Drug Abuse Under the existing provisions of section 80G, an assessee is allowed a deduction from his total income in respect of donations made by him to certain funds and charitable institutions. The deduction is allowed at the rate of hundred percent […...

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Posted Under: Income Tax |

Tax planning for financial year 2014-15

As the financial year draws to a close, we all start feeling the heat and realise that yes, now we have to invest in order to save tax. Whilst investing with tax saving and tax planning in mind is the key, these investments must be part of a larger financial plan - to achieve certain life goals and protect capital. Unfortunately, tax plan...

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Extension U/s 80G(5) cannot be denied for violation of section 13

Ashoka Education Foundation Vs CIT (ITAT Pune)

While granting the exemption or renewal of exemption under section 80G(5) of the Act, the role of CIT is limited to look into the nature of activities being carried on by the institution or fund and the violation if any, of the provisions of section 13 of the Act and its various sub‑sections are to be looked into by the Assessing Office...

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Publicise Income Tax Exemption to PM's Relief Fund – PMO

Prime Minister's National Relief Fund (PMNRF) was constituted in January, 1948 to assist displaced persons from Pakistan. The resources of the PMNRF are now utilized primarily to render immediate relief to the affected families of those killed/ injured in natural calamities like floods, cyclones and earthquakes, etc, or in the major accid...

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Posted Under: Income Tax |

Recognition U/s. 80G(5) cannot be rejected for Mere non Commencement of one of the activities mentioned in object clause

Commissioner Of Income Tax Vs Vihangam Yoga Prachar And Social Welfare Trust Lucknow (Allahabad High Court): Income Tax Appeal No. 35 of 2013

ALLAHABAD High Court Rejects Revenue’s denial of Sec 80G(5) recognition on the ground that the assessee-trust did not commence one of the activities mentioned in object clause- The fact that the assessee was still to commence the activity of establishing a hospital for imparting medical treatment would not by itself result in the reject...

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Donations u/s 80 G by employees through their respective employer to PMNRF

The Prime Minister of India, Dr. Manmohan Singh, has appealed to all citizens of India to stand with our distressed countrymen affected by the extensive devastation due to cloud burst and floods in the state of Uttarakhand where a large number of people have died and property worth crores of rupees has been damaged. The Prime Minister ha...

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Posted Under: Income Tax |

S. 80G Registration cannot be denied for mere non utilization of Government Grant

Commissioner of Income-tax-I Vs Association For The Prevention of Blindness (Allahabad High Court)

Section 80G(5)(i)(b) provides the condition for exemption or rejection of the application for renewal, if the donation made to the institution or funds are not used by it directly or indirectly for the purpose of such business. In the present case the Commissioner did not record any such finding that the funds, which was earmarked and was...

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S. 80G – HC grant Opportunity to Trust Negligent in Filing Requisite details due to employees’ laxity

Guru Gobind Singh Educational Society Vs Commissioner, Income-tax (Madhya Pradesh High Court)

For furnishing information required, the petitioner had sought 5 adjournments, as finds place in the impugned order but such information was not furnished. On 8.3.2001, again an adjournment was sought by the petitioner on the ground that the staff was busy in the examination work so time be allowed for furnishing the information. From the...

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S. 80G 100% deduction for donation to National Children’s Fund

One hundred per cent deduction for donation to National Children’s Fund Under the existing provisions of section 80G an assessee is allowed a deduction from his total income in respect of donations made by him to certain funds and institutions. The deduction is allowed at the rate of fifty per cent of the amount of […]...

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Posted Under: Income Tax |

Commissioner cannot cancel exemption certificate granted u/s. 80G without Show Cause Notice

Commissioner of Income-tax Vs Rajasthan Jain Charitable Trust (Karnataka High Court)

A perusal of the impugned order passed by the Commissioner specifies that what was pending consideration before him was the application filed by the respondent for renewal of exemption certificate issued under section 80(G) of the Income Tax Act. The order passed by the Commissioner further specifies that a notice was issued to the respon...

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Income Tax deductions for A.Y. 2013-14 / FY 2012-13

DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, DEFERRED ANNUITY, CONTRIBUTIONS TO PROVIDENT FUND, SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES, ETC. [SEC. 80C, APPLICABLE FROM THE ASSESSMENT YEAR 2006-07] - SECTION 80C 1. Under section 80C, deduction would be available from gross total income. 2. Only an individual or a Hindu...

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A cheque, unless dishonoured, is payment & relates to dates of receipt -SC

Director of Income Tax Vs. Raunaq Education Foundation (Supreme Court of India)

In one view of the matter there was, in the circumstances of this case, an implied agreement under which the cheques were accepted unconditionally as payment and on another view, even if the cheques were taken conditionally, the cheques not having been dishonoured but having been cashed, the payment related back to the dates of the receip...

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Expense on worship of Hindu Gods & Temple maintenance cannot be regarded to be for religious purpose

Shiv Mandir Devsttan Panch Committee Sanstan Nagpur Vs CIT-1 Nagpur (ITAT Nagpur)

It cannot be said that Hindu is a separate community or a separate religion. Technically Hindu is neither a religion nor a community. Therefore, expenses incurred for worshipping of Lord Shiva, , Hanuman, Goddess Durga and for maintenance of temple cannot be regarded to be for religious purpose. ...

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Rejection of application u/s 80G(5) cannot be passed without giving the institution

Tri Netra Sewa Sanstha Vs DIT(E) (ITAT Delhi)

As per proviso attached to the sub-rule (5) of Rule 11AA of the Rules, it is a statutory requirement that no order of rejection of application u/s 80G(5) of the Act shall be passed without giving the institution, trust or fund an opportunity of being heard....

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Trust working for a particular community not eligible for approval under section 80G(5)

Ramanujam Spiritual Public Charitable Trust Vs Commissioner of Income-tax-I, Amritsar (ITAT Amritsar)

On the perusal of trust deed, it would be clear that trust was created wholly for a particular purpose and religious community i.e. Hindu and not for charitable purposes and thus, it contravenes the conditions laid down in section 80G(5) (iii) read with Explanation 3....

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While dealing with application u/s. 80G(5) CIT cannot act as assessing authority

Shri Chandrabhan Athare Patil Gram Navodaya Trust Vs Commissioner of Income-tax - I, Pune (ITAT Pune)

The Hon'ble Gujarat High Court in the case of N.N. Desai Charitable Trust (supra) while deliberating upon the scope of enquiry for the purpose of granting of recognition u/s.80G of the Act opined that it does not envisage the commissioner to act as an assessing authority because the actual assessment of institution would not ultimately ef...

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80G approval to be valid in perpetuity even if assessee files an application for renewal

Vishav Namdhari Sangat Vs CIT (ITAT Chandigarh)

Approval u/s. 80G once granted shall continue to be valid in perpetuity unless and until a show-cause notice is issued by the concerned CIT showing his intention to withdraw already granted such approval. ...

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Approval u/s.80G(5) to continue unless withdrawn as per law

Bhole Bhandari Charitable Trust Vs CIT (ITAT Chandigarh)

Bhole Bhandari Charitable Trust v. CIT From the proviso attached to the section 293C of the Act, it is crystal clear that even if any Income-tax Authority wants to withdraw approval, he shall issue a show-cause notice against the proposed withdrawal to the assessee concerned and after giving a reasonable opportunity of being heard shall w...

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Holding conference at 5 star hotel cannot be grounds to deny registration u/s 12AA or 80G

Heart Care Management Vs Director of Income-tax (E) (ITAT Delhi)

The main issue raised by the DIT(E) is in respect of holding of conference of doctors at a five star hotel and the fact that the donors are pharmaceutical companies and some of them have deducted TDS. Adverse inference has also been drawn from extravagance of expenses the fact that the conference was of doctors and there is no benefit to ...

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Deduction for Donation not allowed for cash donations in excess of ten thousand rupees

Currently, there is no provision in either of the aforesaid sections specifying the mode of payment of money. Therefore, it is proposed to amend sections 80G and 80GGA so as specify therein that any payment exceeding a sum of ten thousand rupees shall only be allowed as a deduction if such sum is paid by any mode other than cash. ...

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Section 80G – Approvals already granted to the assessee u/s 80G, if expiring on or after 1.10.2009, shall be deemed to have been extended in perpetuity

Ina Raja Memorial Education Trust Vs DIT (Exemptions) (ITAT Delhi)

Ina Raja Memorial Education Trust Vs DIT (Exemptions) - (ITAT Delhi) - In this case, the assessee made an application on 24.2.2011 in Form No. 10G, seeking renewal of exemption u/s 80G of the Act, which has been rejected by the ld. CIT(A) by observing that the assessee has failed to furnish bills/vouchers of expenses and certain other de...

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