<h1>CBDT Clarifies Tax Rules for Trust Donations: 85% Considered for Charitable Use, Addresses 15% Taxability Concerns.</h1> The Central Board of Direct Taxes (CBDT) has clarified provisions under the Finance Act 2023 regarding donations made by one trust or institution to another. Under the Act, donations (excluding those towards corpus) are considered as application for charitable or religious purposes up to 85% of the donation amount. Concerns were raised about the taxability of the remaining 15%, which is not available due to disbursement. CBDT addressed these concerns with detailed examples in Circular No. 3/2024, explaining the treatment of such donations for tax purposes. This clarification aims to provide a better understanding of the application of income rules.