Application for charitable purposes limited to a specified portion; timing and repayment conditions now determine tax recognition. Amendments require the option under Explanation 1(2) and the statement of accumulation under subsection (2)(c) to be exercised or furnished at least two ... Summary
Application for charitable purposes limited to a specified portion; timing and repayment conditions now determine tax recognition.
Amendments require the option under Explanation 1(2) and the statement of accumulation under subsection (2)(c) to be exercised or furnished at least two months before the return due date; impose no violation conditions and a five year repayment/investment window for applications from corpus or loan/borrowing to qualify as application for charitable or religious purposes; and introduce a provision treating certain amounts credited or paid to specified institutions as such applications only to the extent of eighty five per cent.
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