TAXATION OF CHARITABLE TRUSTS AND INSTITUTIONS - A STUDY [Based on the law as amended by the Finance Act, 2008] Direct Taxes Committee The Institute of Chartered Accountants of India (Set up by an Act of Parliament) New Delhi THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission in writing, from the publisher. Website : www.icai.org E-mail :
[email protected] First Edition : January, 1978 Reprinted : July, 1978 Second Revised Edition : October, 1980 Third Revised Edition : March, 1984 Fourth Revised Edition : May, 1999 Fifth Revised Edition : January, 2002 Sixth Edition : February, 2009 Price : Rs. 300/- ISBN No : 978-81-8441-213-0 Published by : The Publication Department on behalf of CA. Mukta K. Verma, Secretary, Direct Taxes Committee, The Institute of Chartered Accountants of India, A-94/4, Sector-58 Noida -201 301. Printed by : Sahitya Bhawan Publications, Hospital Road, Agra 282 003. February/2009/1000 Copies ii FOREWORD TO THE SIXTH EDITION Taxation of “Charitable trusts and Institutions” is an important area in the Income-tax Act. Since the medium of charitable trusts is widely perceived as a toll of tax planning, the government has progressively made the law relating to taxation of charitable trust very strict. In the recent past there have been many amendments in the law through which the Government has tried to bring the anonymous donations made to these trusts under the tax net.