Union Budget 2023: Current budget ad for small charities, says Viren Merchant

Union Budget 2023: Current budget ad for small charities, says Viren Merchant

Each year, the charitable and religious trusts are increasing compliances and further reducing time for it. While it may be good to curb those into adjusting entries and keeping people on their toes, it is creating a burden on the sector, particularly the small time charities, Viren Merchant says.

Staff ReporterUpdated: Thursday, February 02, 2023, 10:25 AM IST
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Viren Merchant | Sourced Photo

The government has tried to create an environment that is litigation free for Religious or Charitable organisations. Earlier, the system had loose ends but now it has prefilled forms that have reduced the litigation.

Each year, the charitable and religious trusts are increasing compliances and further reducing time for it. While it may be good to curb those into adjusting entries and keeping people on their toes, it is creating a burden on the sector, particularly the small time charities.

They have shortened the time for exercising the option, which is about accumulation of surplus income that is to be done now in two months prior to the due date of filing return as per the current budget.

The charitable trusts, trustees and tax practitioners cannot keep the compliances at the last step but will have to prepare it well before time. The budget proposes additional conditions for charitable and religious trusts where they will be allowed to recoup their corpus.

The only setback is that they will have to do it in five years, else lose the option of recouping the corpus from future income.

Viren Merchant, CA, auditor to Charitable, Religious and Educational bodies

As told to Ashutosh Shukla

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