Income Tax Department: The Income Tax Department has changed the rules of donation to religious institutions. Now taxpayers will have to tell in ITR that they have donated to the religious institution or temple
Income Tax Department: The Income Tax Department has changed the rules of donation to religious institutions. Now taxpayers will have to declare in the ITR that the religious institution or temple to which they have donated is engaged in religious activities or is doing charitable activities. Here we are telling you what is the difference between religious and charitable activities.
These rules will apply to donations above Rs 2 lakh
Donation rules related to religious institutions will be applicable from October 2023. According to the new rules, charitable organizations will have to give information about people who have donated more than Rs 2 lakh. In this, the name, address and PAN number etc. of the donor will have to be given.
Registration rules have changed under 80G
The government has recently made a slight change in the registration rules applicable to charitable institutions seeking 80G under the Income Tax Act to claim tax exemption. According to experts, now rules 2C, 11AA and 17A) have been changed under the income tax rules. All these new rules will be applicable from October 2023. Apart from this, a slight change has also been made in the undertaking given at the end of the related form.
Schools and hospitals will come under the category of charitable institutions.
Income tax exemption is available on the income of charitable institutions, religious trusts, hospitals and educational institutions under the Income Tax Act. However, for this exemption, these institutions will have to register with the Income Tax Department.
