A new law introduced by the Government of India will require all exempt organisations to declare their tax status.
This has already been done by a number of exempt organisations such as banks, financial institutions, insurance companies and the like.
The Government says this will ensure tax compliance and minimise any financial burden on the country.
The exemption organisations have already declared their tax exemption status in India, but the Government will not be able to force them to do so, so they will have to follow the law.
There are some issues with this law.
First of all, the exemption organisations are not required to register their tax exemptions.
They have already done this by way of letter of declaration.
Secondly, the Government does not require them to give their address to the Department of Revenue.
Thirdly, there is a catch-22 in that the exemption organisation must also declare the income it generates and the income received from the exemption.
So if they don’t declare these things, then they are going to be penalised by the Department for not disclosing the income and the tax it generates.
This is not a fair way to go about collecting taxes.
The last point is that the Government has no intention of collecting any taxes from the exempt organisations, which is why the Government is insisting on their exemption.
This law will be implemented from next year.
Income Tax Department The Government has also proposed a change to the Income Tax Department to make it easier to file a return from overseas.
The proposal is to make filing an overseas income tax return from India mandatory.
In addition, the Department has proposed a scheme to help exempt organisations pay their taxes.
In its proposal, the Ministry of Finance has proposed an additional income tax exemption scheme for all exempt organisation.
The exemptions under this scheme will be limited to certain categories of income (e.g. property, shares, capital gains, interest and dividends).
The scheme will apply to all exempt organizations that pay no more than 10 per cent of their income from overseas (10 per cent being the minimum amount that an exempt organisation is allowed to pay).
This is the first time the Government proposes to introduce an income tax relief for exempt organisations.
The other big change proposed in the bill is to provide relief for the exemption of religious bodies.
There is no relief in the law for such organisations, but a number exempt organisations have asked the Government to make exemptions for their religious bodies available.
The proposals will be discussed at a meeting of the Central Board of Direct Taxes on March 18.