Govt relaxes tax norms for NGOs, charitable institutions

Last Updated: Wednesday, November 3, 2010 - 23:06

New Delhi: The government today relaxed the
norms for NGOs and charitable institutions by doing away with
the practice of renewing tax concession status to them every
3 years.

Henceforth, the official said, the income tax authority
will grant tax concession status, which will remain valid till
withdrawn.

"These approvals will be one-time approvals unless
withdrawn by the income-tax authority empowered to grant
them," Central Board of Direct Taxes (CBDT) said in a
statement.

Presently, the Income Tax department grants such a status
to an organisation and can also withdraw it if the
organisation is proved to be flouting any prescribed rule. The
NGO also has to renew its approval from the Income Tax
department every 3 years.

Now, these organisations would not be required to go for
a renewal each time, unless it is questioned by the tax
authority.

"It is a welcome move and it would remove administration
burden," KPMG`s tax expert Vikas Vasal said.

PTI



First Published: Wednesday, November 3, 2010 - 23:06

comments powered by Disqus