The Income Tax Department has begun a countrywide investigation of charitable and religious trusts that have been found violating tax exemption rules and are using donation funds for business purposes. A classified report prepared by the department has found that a large number of trusts and societies are violating I-T exemption laws and are conducting business, commerce and trade instead of charity. The department had put in a new clause in the I-T Act in 2009-10 that such entities engaged in the advancement of any object of general public utility will cease to enjoy tax exemptions if they collect fees or other charges for services rendered in the nature of business, commerce or trade. - www.economictimes.indiatimes.com
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