Union Budget 2023, continues to rationalize the provisions in relation to Charitable Organisations covering Trusts, Section 8 Companies, Societies, etc. who are engaged in carrying out Charitable Activity within the definition of the Income Tax Act.
Over the period of the last 3 years, various changes have been made in this area. The Major change was brought about by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 wherein all Charitable Organisations were required to take registration afresh, and further procedure for applying for registration was also revamped. Thereafter, the changes were also made by way of amendments made to the Finance Act, 2021, and Finance Act, 2022.
Continuing the trend in this Budget, the Amendments propose to ease out the process of registration, clarify amendments made by way of Previous Finance Acts, ensure that no undue benefit is taken, and focus to ensure that these Charitable Organisations who are claiming exemption are compliant of various provisions under the Act.