Donor disclosure rules tightened for trusts

Charitable, religious and educational trusts will now have to provide additional disclosures with their income-tax returns including name, address and permanent account numbers of donors that donate over ₹2 lakh in a day, according to a Central Board of Direct Taxes notification.

These entities will also have to furnish an undertaking to the effect that the activities undertaken by them were charitable, religious or religious-cum- charitable in nature. The CBDT has also tweaked the format of the undertaking to be given as per the latest rules that will come into effect from October 1.

The government had recently revamped the registration framework for charitable organisations, for claiming tax exemption or obtaining 80G certificate under the Act.


The latest rules mandate that the new trusts or institutions need to apply for provisional registration, at least one month prior to the commencement of the year from which the said registration is sought.