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.

AI Summary

Charitable organization awaits Section 80-G approval for donor tax benefits; existing 12A registration remains unaffected. A charitable organization registered under Section 12A is receiving donations for distributing ration during the COVID-19 pandemic. However, the organization is awaiting approval under Section 80-G, which donors require for tax deductions for the fiscal year 2019-20. There is concern about whether the new Finance Act 2020 provisions for fresh registration and application under 80-G will impact the existing 12A registration. A response clarifies that donors will only receive tax benefits after the Section 80-G approval is granted by the Commissioner of Income Tax (Exemptions).