Economy & Policy Review of exemptions for trusts suggested (India)

Economy & Policy: "Review of exemptions for trusts suggested

Our Economy Bureau / New Delhi April 21, 2005

A parliamentary committee has recommended that the finance ministry consider incorporating a limitation provision for granting income-tax exemptions to a fund or an institution established for charitable purposes. The exemptions relate to assessment years starting 1986-87.

�The committee feel that grant of exemption to organisations after a gap of as long as 16 years does raise doubts about the rationale and bona-fides of such a step. Absence of a limitation provision is obviously a lacuna in the act or rules which should have suitably got amended by the department of revenue on its own initiative,� the committee on subordinate legislation said in a report tabled in Parliament today. "