Donation to a Trust registered under 12A but 80-G approval is awaited

[Guest]

A Charitable Organization , which has been registered under 12A but approval letter under 80-G is awaited , is getting the donation from public through Bank Transfer for distribution of Ration to the Poor in times of Corona Pandemic.

The Donors want to be assured that they would atleast get the deduction under sec 80-G for the Current FY 2019-20 for the amount donated by them after the Registration of Trust under 12A.

Further , whether the new provisions introduced in the Finance Act 2020 for fresh Registration under Income Tax Act online and thereafter fresh application under 80-G to be made for all the the trusts , will have any effect on the previous approval under 12 A

Whether the donor would get the benefit only after the letter of approval under Section 80-G is issued by CIT (Exemptions) or they would be eligible to get the exemption on the basis of approval under 12A.

[DR.MARIAPPAN GOVINDARAJAN]

The benefit will be availble only after the approval under section 80G.

AI Summary

Tax deduction under section 80G available only after formal 80G approval; 12A registration alone is insufficient. Donor deductibility for contributions to a charitable trust is contingent on the trust obtaining the specific donor-deduction approval; general exemption registration alone does not permit donors to claim tax deductions. The requisite donor-deduction approval must be issued by the competent tax authority before donors can validly claim deductions, and procedural changes to registration processes do not obviate that requirement.