Penalty for benefits to related persons: enhanced sanction for repeat breaches of charitable institution benefit restrictions under income tax law.

The new provision empowers the Assessing Officer to impose a penalty equal to the aggregate amount of income applied, directly or indirectly, for the benefit of related persons where specified exempt funds, trusts, educational or medical institutions are found to have breached the relevant charitable benefit restrictions on first detection, and an enhanced penalty equal to two hundred per cent. of that aggregate amount where the breach is detected again in a subsequent year; effective 1 April 2023.

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