Changes in NGOs, Educational & Hospital Institutions (Finance Bill 2022) II Budget changes in NGOs

1. Ensuring effective monitoring and implementation of two exemption regimes

🖋️Books of account to be maintained by the trusts or institutions under both the regimes

🖋️Penalty for passing on unreasonable benefits to trustee or specified persons

🖋️Reference to the Principal Commissioner or Commissioner (PCIT/CIT) for the cancellation of registration/approval

2. Bringing consistency in the provisions of two exemption the regimes

🖋️Accumulation provisions

🖋️Bringing consistency in the provisions relating to payment to specified person

🖋️The provisions of section 115TD to apply to any trust or institution under the first regime.

🖋️Filing of return by person claiming exemption under clause (23C) of section 10 of the Act

3. Providing clarity on taxation in certain circumstances

🖋️Allowing certain expenditure in case of denial of exemption

🖋️Taxation of certain income of the trusts or institutions under both the regimes at special rate

🖋️Voluntary Contributions for the renovation and repair of temples, mosques, gurudwaras, churches etc notified under clause (b) of sub-section (2) of section 80G

🖋️Clarifying that application will be allowed only when its actually paid

🖋️Consequential Amendments (i) Reference to prescribed authority under clause (23C) of section 10 (ii) Amendment to sub-section (1A) of section 35