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: empanelment :: ACCOUNTING STANDARD :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: articles on VAT and GST in India :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: form 3cd :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARDS
 
 
News Headlines »
 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
 Have you got interest on your income tax refund?

FM may not be charitable to trusts in Budget 07-08
February, 10th 2007

Interest income earned by charitable institutions could come under the tax net. At present, this income is tax-free if the institutions reinvest 85% of the earnings in charitable activities.

The finance ministry has decided to visit the field anew. It has consulted tax experts, including the National Institute of Public Finance & Policy, in the run-up to Budget to develop a viable taxation plan for the sector.

Income-tax provisions allow a notified charitable institution to receive a tax-free donation, which it can invest in specified securities. Section 11(5) of the I-T Act specifies the types of securities in which the donations can be invested in, like post office deposits, government bonds and deposits with banks.

Tax laws say 85% of the interest income must be ploughed back into charitable purposes. The only exception to this rule is for institutions, which provide a declaration that the sum would be invested in specific projects.

This means a donation made to such institutions or trusts remains tax-free not just at the accumulation stage, but also at the vesting stage. This is similar to the status enjoyed by some small savings schemes.

NO FREE LUNCHES
Finance ministry has decided to visit the subject of taxing charities anew
I-T provisions allow tax-free donations which can be invested in specified securities
Charities have escaped the tax net because they work for the public good
 
Tax experts say charitable institutions have for long escaped the tax net because they worked for the public good. Hence, any move to tax them raises an emotive issue.

For instance, the government subjected anonymous donations to non-religious trusts to a 30% tax in the last Budget. But many institutions have already pleaded with the finance ministry to relax the measure.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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