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Amendment in section 80G for Renewal of Approval – Circular 7 / 2010

01 May

Dear all Professional friends,

With effect from 1st October, 2009 the requirement of periodical renewal of approval under section 80G is being dispensed with. All trusts whose approval expires on or after 1st October, 2009 have to apply for approval again.

Their approval will continue to be valid in perpetuity unless withdrawn.

Those trusts, whose approval expires prior to 1st October, 2009 have to apply once for renewal of their approval.

Circular No. 7/2010 dated 27-10-2010
Clarification regarding period of validity of approvals issued under section
10(23C)(iv), (v), (vi) or (via) and section 80G(5) of the Income-tax Act
For the removal of doubts about the period of validity of various approvals granted by the
Chief Commissioners of Income-tax or Directors General of Income-tax under subclauses (iv), (v), (vi) and (via) of section 10(23C) and by the Commissioners of Incometax or Directors of Income-tax under section 80G(5) of the Income-tax Act, 1961, the
Central Board of Direct Taxes has, through, this circular clarified the following:-
1. In light of the amendment brought by Taxation Laws (Amendment) Act,2006, it
has been clarified that for the purposes of sub-clauses (iv) and (v) of section
10(23C) any notification issued by the Central Government under the said
clauses, on or after 13-7-2006 will be valid until withdrawn and there will be no
requirement on the part of the assessee to seek renewal of the same after three
years.
2. In light of the provisions of Rule 2CA, it has been clarified that for the purposes
of sub-clauses (vi) and (via) of section 10(23C) any approval issued on or after 1-
12-2006 would be a one time approval and would be valid till it is withdrawn.
3. In light of the amendment brought by Finance (No.2)Act,2009 it has been
clarified that for the purposes of section 80G(5), existing approvals expiring on or
after 1st October, 2009 shall be deemed to have been extended in perpetuity
unless specifically withdrawn. Further, any approval under section 80G(5) on or
after 1-10-2009 would be a one time approval which would be valid till it is
withdrawn.


 

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