Set back to Charitable Organisations: Budget 2021 disallows Carry Forward of loss by Charitable Organisations [Read Finance Bill]
Set back to Charitable Organisations – Budget 2021 – Carry Forward – Charitable Organisations – Taxscan
Set back to Charitable Organisations – Budget 2021 – Carry Forward – Charitable Organisations – Taxscan
The Finance Minister, Nirmala Sitharaman while announcing the Budget 2021-22 disallowed the Carry Forward of loss by Charitable Organisations.
“In order to provide certainty, it is proposed to clarify that charitable trusts shall not be permitted to claim carry forward of loss. However, the loan repayment and replenishment of corpus shall be allowed as application,” the Finance Minister, Nirmala Sitharaman in the budget speech said.
The government has notified the amendment in Section 10 of the Income Tax Act where it is clarified that the calculation of income required to be applied or accumulated during the previous year shall be made without any set off or deduction or allowance of any excess application of any of the year preceding to the previous year.
“We hope to reduce 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 announced.
To Read the full text of the Finance Bill CLICK HERE
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