Those interested in philanthropic activities like donating money to charities and contributing for public welfare will find relief under a new amendment where any approval granted under section 80G of the Income Tax Act will be valid until it is withdrawn.
Earlier, the approval under section 80G was valid for three years and the trust had to approach the IT department at the end of three years for renewal of the registration. Now, after the implementation of the amendment, permissions at a regular interval will not have to be taken.
"The approval under section 80G of the IT Act granted shall be valid unless it is withdrawn by a specific order from the IT department," IT sources told DNA. "In Ahmedabad, there are many organisations which are involved in philanthropic activities like donating money to charities. The amendment would benefit them.''
Organisations involved in charitable activities are covered under section 80G of the IT Act. The amount donated to these institutions or funds are deductible from the taxable income.
The extent of deduction is between 50% and 100% depending on the kind of donation.
Any individual or organisation can claim this deduction under section 80G. Even non-resident Indians (NRIs) can claim this benefit.
