NEW DELHI: The Central Board of Direct Taxes (CBDT) in its latest notification gave limited relaxation to funds, trusts, educational institutions, hospitals, and medical institutions in relation to providing details of substantial contributors those who donate more than Rs 50,000 in a year.
Now, in the audit reports, form 10 B and form 10BB, the details of such persons can be provided “if available”.
“Representations have been received regarding difficulties in filling details of persons who have made a ‘substantial contribution to the trust or institution’, that is to say, any person whose total contribution up to the end of the relevant previous year exceeds fifty thousand rupees. The matter has been examined with reference to issue raised..... the aforesaid details (that is, of persons making substantial contribution) may be given with respect to those persons whose total contribution during the previous year exceeds fifty thousand rupees,” the notification said.
Details of relatives and concerns with substantial interest can be provided if available. This measure aims to simplify the reporting process for the assessment year 2023-24, it stated.
However as per experts, this is not an absolute relaxation as they will have to make disclosure in case they have the details.
As per Sandeep Jhunjhunwala, Tax Partner at Nangia Andersen LLP, “While some might view this as a relaxation, the absence of qualifying the former case (ie reporting of details of persons making substantial contribution) with the phrase ‘if available’, could imply a mandatory requirement.”