Charitable Institutions Related Changes u/s 12A/12AA and 80G Budget 2020
In the Union Budget presented on 1st February 2020 by our Honourable Finance Minister, there have been dynamic and aggressive changes that relate to Charitable Institutions. The move is purely intended to curb tax evasion and bring transparency in the operations of Charitable Institutions. The government is keen to take strict measures to avoid any undue advantage taken by Charitable Institutions like Charitable Trusts, Societies, and Section 8 Companies whose objective, in short, is to conduct charitable activities. The changes have come in for Charitable Institutions registered under 12A/12AA and 80G of the Income Tax Act and exempt institutions registered under section 10(23C) of the Income Tax Act. The changes are majorly focused on the registration process through which exemption is granted.