Mid Day Reports SMJSS Shree Mumbai Jain Sangh Sangathan Meeting

Business Standard reports How a new tax law has stumped Tata Trusts and top corporate donors.

Times of India Reports Charitable trusts and institutions oppose some proposed amendments in Finance Bill 2003, seek repeal or modifications.

The Finance Bill proposes that if a charitable organisation donates to another charity, then only 85 per cent of the donation will be considered as an application of income for the donor organisation.

Indian charitable trusts, including Tata Trusts and top corporate donors, are stumped by a new tax law proposed in the Budget, which reduces tax breaks for the donor organisations.

A Petition has been initiated to create awareness about two significant changes proposed in the Union Budget 2023.

1.       Firstly, as proposed

Repayment of Loans will be qualified as "application of Income" ONLY if Repaid within 5 Years.

Similarly

Replenishment of Corpus would ONLY be allowed if done within 5 Years.

The proposal even very incorrectly presumes that the amount spent from such corpus/ or loans has been “claimed as application” of Income u/s 11(1)(a) prior to 01.04.2021 by the trusts or institutions and hence allowing it as application of income now will amount to double deduction.

These proposed amendments to applications out of corpus and loans would severely limit the ability of charities to use their resources to address urgent and emerging needs. By imposing further restrictions on these applications, the proposed amendments would hinder charities' ability to respond to crises and changing social needs, ultimately limiting their ability to deliver on their charitable objectives.

2.       Secondly, Inter Charity Donations, would be treated as application TO AN EXTENT of 85% ONLY. That means - When One trust gives donation to another trust only 85% of such donations given will qualify as “application” of income.

This proposed amendments to inter-charity donations would significantly limit the ability of charities to work together and share resources to achieve common goals. Donations made by one charity to another are a critical source of funding and support for many organizations, particularly those that are smaller or more specialized.

We are here to urge to the Finance Ministry to reconsider these proposed amendments and to request the Finance Ministry to engage with the charitable sector to develop solutions that support, rather than hinder, the important work of charities in our country.

YOUR Voice can make the required change NOW.

So, SPEAK UP by SIGNING this online petition NOW.

And spread the awareness.

The Hindu Newspaper reports Association urges Centre to repeal amendments to Finance Bill concerning charities

The Free Press Journal reports 'Easier to do business than charity': Experts on Budget 2023