Amendment of Existing Trust Deeds

[Ethirajan Parthasarathy]

All existing trust deeds of NGOS referres to investments to be made in compliance of section 13 of income tax 1961 and also about 80G of the said Act. Is it necessary to amend the trust deed so as to refer to section 350 of income tax act 2025. If yes, even for such consequential change do we need commissioner'sprior approval.

[Ryan Vaz]

1. No, it is not necessary to amend existing trust deeds to refer to the proposedIncome-tax Act, 2025, or its Section 350, as this Act is not yet enacted. All NGOs must continue to comply with the provisions of the Income-tax Act, 1961, as currently in force. If and when the Income-tax Act, 2025, is enacted, and if it necessitates changes to the trust deed's substance (e.g., investment patterns or objects), then an amendment and subsequent intimation/re-registration with the Commissioner/Principal Commissioner of Income Tax would be required.

[Ethirajan Parthasarathy]

Dear Mr.Ryan,

 

I am not able to understand how you have concluded that Income-tax Act, 2025 is not yet enacted. However if it is already enacted, are we expected to amend the trust deed. Please clarify..

AI Summary

Trust Deed Amendments may be required only when new tax law materially changes investment patterns or charitable objects.
Amendment of existing NGO trust deeds is not considered necessary while the Income-tax Act, 2025 has not been enacted; trusts should continue to comply with the Income-tax Act, 1961. If the new Act is enacted and materially affects the deed, including investment patterns or charitable objects, amendment and intimation or re-registration with the Commissioner or Principal Commissioner of Income Tax may be required.