TaxTMI 
TaxTMI 
Comparison of SCHEDULE XVI "PERMITTED MODES OF INVESTMENT OR DEPOSITS" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)
X X X X Extracts X X X X
X X X X Extracts X X X X
....egistered non-profit / charitable or religious trusts or institutions. The differences between the two texts are principally editorial and ordering/wording differences and a few numbering/clauses variations; they do not indicate new substantive modes in the Old Version beyond those in the Act version provided. Affected parties: charitable/religious trusts, registered non-profit organisations, tax administrators and financial intermediaries. Effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: See section 350 (referenced) and the schedule title SCHEDULE XVI. The schedule specifies the "modes of investing or depositing the money referred to in section 350" and therefore regulates the forms in whic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ompanies, incubator/incubatee investments, shares of National Skill Development Corporation, debt instruments of RBI-registered infrastructure finance companies, Sovereign Gold Bonds ("Stock Certificate" definition reference), units of Powergrid Infrastructure Investment Trust, shares in a public sector company, historical corpus exceptions (assets forming corpus as at specified historical dates), accretions by bonus shares, debentures acquired before specified historical dates, voluntary contributions maintained as specified tangible assets, short-term holding exception for non-specified assets, and funds representing business profits under specified conditions. Interpretation The schedule is primarily a closed list of permissible forms;....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Illustrations * Example 1: A registered non-profit purchases Central Government savings certificates and deposits surplus funds in a scheduled bank: these are permitted under clauses (1) and (3). * Example 2: A trust acquires equity shares of a public sector company that later becomes disinvested and ceases to qualify as a public sector company; the trust's shareholding is deemed to remain a permitted investment for three years from the date of change (clause (7)(a)). * Example 3: A charitable institution receives a painting as a voluntary contribution and maintains it as part of corpus pending a Board notification: clause (30)/(32) allows voluntary contributions maintained in forms such as furniture or jewellery if specified by B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....efinition of "registered non profit organisation" vs. "charitable or religious trust or institution" elsewhere - Not stated in the document. Numbering and ordering Lists items (1)-(32) with definitions at paragraph 2 (a)-(f). Lists items (1)-(32) then includes clause (33) as the definitions block; textual wording slightly varies (e.g., references to "herein referred to" vs "hereafter referred to"). Primarily editorial; no substantive change to listed permissible modes is apparent. Practical impact: negligible on permitted modes; clarity/interpretation possibly affected by drafting differences but core content substantially same. Specific clause differences (examples) Includes item (30) "voluntary contributions received and maint....
X X X X Extracts X X X X
X X X X Extracts X X X X
....about corrections. Editorial only. Practical impact: none on legal substance, but the errata notes in Document 2 improve textual accuracy. Practical Implications * Compliance and risk areas: Trustees and non-profit administrators must ensure corpus monies are invested only in the enumerated modes or within the short-term holding exception; reliance on non-specified investments beyond the one-year grace risks non-compliance with section 350 conditions. Not stated in the document: procedural sanctions or consequences for non-compliance. * Record-keeping/evidence: The text implies need for records evidencing nature of instruments (e.g., government certificates, bank deposits, share certificates, notifications of permitted Board-specifie....