22 February 2011
MY CLIENTS ARE HAVING A REGISTERED TRUST. THEIR 80G CERTIFICATE IS GETTING EXPIRED ON 31/03/2011 (01/04/2008 TO 31/03/2011). ARE THEY SUPPOSED TO APPLY FOR RENEWAL OF 80G CERTIFICATE OR IT WILL BE VALID FOR EVER. KINDLY ADVISE.
22 February 2011
Amendments has been made as per which need not to obtain approval for exemption u/s 80G every years, once obtained it is valid for life time untill rebutted
One-time approval for institutions and funds for the purpose of recognition under section 80G (i) Section 80G(5)(vi) provides that the institutions or funds to which the donations are made have to be approved by the Commissioner of Income-tax in accordance with the rules prescribed. (ii) 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. (iii) The approved institutions and funds face genuine hardship in renewing their approvals from time to time on account of this restriction imposed on the validity of such approvals. (iv) Therefore, in order to mitigate the hardship and to reduce the burden on the tax administration, the proviso has been omitted, implying that the approval once granted shall continue to be valid in perpetuity. (v) Since this amendment would be effective from 1st October, 2009, the existing approvals expiring on or after 1st October, 2009 shall be deemed to have been extended in perpetuity unless specifically withdrawn. However, approvals expiring before 1st October, 2009 will have to be renewed and post-renewal, these shall continue to be valid in perpetuity, unless specifically withdrawn. (Effective from 1st October, 2009)
CAclubindia
