The Finance Minister, Nirmala Sitharaman while announcing the Budget 2021-22 has proposed the exemption for Small Trusts.
The government with the objective to reduce the compliance burden on small charitable trusts which are running educational institutions and hospitals has proposed the exemption.
Presently there is a blanket exemption to small charitable trusts, whose annual receipt does not exceed Rs.1 crore. However, in the Budget 2021-22 it has been proposed to increase the amount from Rs.1 crore to Rs.5 crores.
“We hope to reduce the compliance burden on small charitable trusts running educational institutions and hospitals. So far, there is a blanket exemption to such entities, whose annual receipt does not exceed Rs.1 crore. I now propose to increase this amount to Rs.5 crore,” the Finance Minister said.
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