Donate to Himbadi Ani Seva Trust







Permission

Govt Notification: Further as per clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961, the institution or funds to which the donations are made have to be approved by the Commissioner of Income-tax in accordance with the rules prescribed in rule 11AA of the Income-tax Rule, 1962. The proviso to this clause provides that any approval granted under this clause shall have effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval.Due to this limitation imposed on the validity of such approvals, the approved institution or funds have to bear the hardship of getting their approvals renewed from time to time. This is unduly burdensome for the bonafide institution or funds and also leads to wastage of time and resources of the tax administration in renewing such approvals in a routine manner.Therefore, it is proposed to omit the proviso to clause (vi) of sub-section (5) of section 80G to provide that approval once granted shall continue to be valid in perpetuity. Further, the Commissioner will also have the power of withdraw the approval if the Commissioner is satisfied that the activities of such institution or fund are not genuine or are not being carried out in accordance with the objects of the institution or fund.This amendment will take effect from 1st day of October, 2009. Accordingly, existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetually unless specifically withdrawn. However, in case of approvals expiring before 1st October, 2009 these will have to be renewed and once these shall continue to be valid in perpetually, unless specifically withdrawn.(Clause 33).