New database on status of charities for taxation clarity

The Central Board of Direct Taxes (CBDT) has instructed its officials to create a new database of charitable institutions to track their registration status under different provisions of the Income-Tax (I-T) Act.

- SHRIMI CHOUDHARY

The intent is to eliminate discrepancies in tax filings and claims of exemption.

"In cases where registrations or approvals have been cancelled, these details must be uploaded on the I-T department's website by August 31," said an official familiar with the matter.

CBDT, the apex body on direct tax administration, wants this database updated regularly so that individuals and companies can identify eligible institutions to donate to and claim tax benefits on those donations.

A new and searchable unique reference number database of charitable entities should be created to reflect the different stages of registration whether it is provisional registration, full registration, or if it is in the approval or provisional approval stage," said the official.