Central Govt Amends Rule 11AA of Income Tax Rules [Read Notification]

The Central Government has notified the amendment of Rule 11AA of the Income Tax Rules, 1962. The rule 11 AA of Income Tax Rules deals with the requirements for approval of an Institution or fund under Section 80G of the Income Tax Act, 1962.

The Central Board of Direct Taxes (CBDT) promulgated the following rules further amending the Income-tax Rules, 1962 in order to carry out the authority granted by clauses (i), (ii), (iii), and (iv) of the first proviso to sub-section (5) of section 80G and the third proviso to sub-section (5) of section 80G read with section 295 of the Income-tax Act, 1961.

The new amendment may be called the Income-tax (7th Amendment) Rules, 2023 published and deemed to enforce on 30th May 2023 has amended the Sub-rule (7) of Rule 11AA of Income Tax Rules.

Sub rule 7 Before amendment

In case of an application made under clause (iv) of first proviso to sub-section (5) of section 80G, the provisional approval shall be effective from date of order, as referred to in sub- rule (5).

Sub rule 7 After amendment

In the Income-tax Rules, 1962, in rule 11AA, for sub-rule (7), the following sub-rule shall be substituted, namely:

“In case of an application made under clause (iv) of first proviso to sub-section (5) of section 80G of the Act, the provisional approval shall be effective from the assessment year relevant to the previous year in which such application is made”.

The Section 80G of the Income Tax Act, 1962 allows individuals and organizations to claim deductions for donations made to specified charitable institutions or funds. The contributions given to these qualified organisations may be deducted from the total amount of taxable income, lowering the tax obligation.

Under Section 80G, any taxpayer, a resident or nonresident who has given money to the specified funds, institutions, or associations is qualified to deduct that amount from their gross income before taxation.

Read More: CBDT notifies Income Tax Sixth Amendment Rules 2023

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