Geetanjali Pandey
Quick Summary
This article is written for covering all the areas which creates impact on trust or Institution referred to in clause (23C) of Section 10 Sec 12AA/12AB with the recent amendment made by Finance Act, 2023. For better understanding, amendment made is divided into eight major categories which are as f
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FAQ :
The Finance Act 2023 introduces changes in exemption regimes, provisions for corpus and loans, donations to other trusts, registration processes, filing timelines, specified violations, and exit tax for charitable trusts and institutions.
From 1st April 2024, only 85% of eligible donations made by a trust to another trust (other than corpus donations) will be treated as application of income for the donor trust.
The Finance Act 2023 clarifies that applications from corpus or loans made before 1st April 2021 will not be allowed as application if reinvested or repaid. For applications made on or after 1st April 2021, such amounts must be reinvested or repaid within 5 years to be treated as application, with specific conditions including no corpus donation to another trust and adherence to TDS and payment limits.
The Finance Act 2023 allows for the cancellation of automated provisional registration or revalidation by an officer for 'specified violations', such as incomplete or false information in the application.
The Finance Act 2023 amends Section 115TD to ensure that trusts failing to make required applications or registrations within specified periods are deemed to have converted into a non-eligible form, making them liable for exit tax on accreted income.
Yes, the Jawaharlal Nehru Memorial Fund, the Indira Gandhi Memorial Trust, and the Rajiv Gandhi Foundation will not be eligible for deductions under Section 80G.
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