Tax Department Tightens Rules for Charity Trust Mergers
The Central Board of Direct Taxes has made it mandatory for charity trusts merging with another registered non-profit to inform the Income Tax Department within a set deadline. Merging groups must also get their accounts audited and give reasons for the merger. The rules also impose five-year curbs on changing objectives.
Context
Context: Charitable trusts in India often get tax exemptions, and the I-T Department checks them to make sure the money is used for the stated charitable purpose. Tighter merger rules are part of that ongoing oversight.
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