Merger of trusts may trigger tax on accreted income; proposed conditions aim to exempt qualifying mergers and clarify compliance.

Proposal: mergers of approved or registered charitable trusts and institutions may attract the tax on accreted income; a new statutory provision will prescribe conditions under which such mergers will not attract the accreted-income regime, specifying qualifying non-attraction safeguards for mergers between entities across the two approval/registration regimes. The amendments are to apply prospectively from the notified commencement date of the finance measures.

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