Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: due date for vat payment :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT Audit :: articles on VAT and GST in India
 
 
« News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

Government may drop tax
November, 18th 2009

The finance ministry is likely to drop the proposal to tax religious trusts. The proposal formed part of the direct taxes code and had raised eyebrows both within and outside the finance ministry.

The issue has been raised in the finance ministry's internal discussions. We are discussing whether the exemption was removed with intent or by mistake, said a finance ministry official.

Under Section 10 (23C) of the Income Tax Act, any trust or institution that works wholly for public religious and charitable purposes and is approved by the chief commissioner or director general, is tax exempt.

The tax code, however, has removed the term religious purpose from the exemption eligibility and instead said income of only those bodies that are registered under any Act of the Centre or the state and administer religious trusts, endowments or societies will be exempt.

Taxation experts have also opposed the proposal. In the existing system, all religious monuments registered with the commissioner of income tax get exemption, provided they are able to spend 85 per cent of the funds for religious purposes. In the direct taxes code, only government institutions such as the Wakf Board controlling religious trust are exempt, said Girish Ahuja, a chartered accountant.

In the same way, the income of authorities managing religious shrines such as Tirumala Tirupati Devasthanams and Vaishno Devi would be fully exempt from tax under the direct taxes code since they are established under a government Act.

Currently, institutions can be registered with the tax department to claim deduction. Under the new code, they can register only with the Centre or the state government to claim deduction. But this could be a problem since only three states have provision for registration Maharashtra, Gujarat and Orissa, said Hitesh Gajaria, partner, KPMG.

Moreover, Section 80G of the existing Income Tax Act gives 50 per cent exemption on donations made to religious trusts.

The new code has proposed such exemption only for renovation or repair of a temple, mosque, gurdwara, church or other place that has been notified in the official gazette to be of historic, archaeological or artistic importance or a place of public worship of renown throughout any state or states.

Experts said this proposal in the code would significantly reduce donations since any contribution meant for spending on religious activities of a shrine such as bhajans and kirtans, or charitable activity, like feeding or teaching the poor, would be fully taxed.

Religious places that will be eligible for tax exemptions on donations will be notified later. Any religious monument may not qualify to be of artistic or historic importance.

This will impact donations in a country where religion takes precedence over lots of issues, said Prashant Khatore, partner, Ernst & Young.

Ahuja agreed, Religious trusts are not taxed in most countries because they receive donations from the people. The authorities must have forgotten to put them in the exemption list.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions