Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Section 80G of the Act, inter alia, provides for the grant of approval to certain funds or institutions for receiving donation. Deduction is available for donations to approved funds or institutions, in the hands of the assessee making such donations.

2. The first proviso to sub-section (5) of section 80G provides timelines for filing application for approval, for funds or institutions referred to in sub-clause (iv) of clause (a) of sub-section (2) of section 80G. The second proviso lays down the procedure for processing the same. It has been noted that at times funds or institutions are unable to file application within specified timelines. A situation of unintended permanent exit of fund or institution from section 80G approval may also arise.

3. It is proposed to amend the first and second provisos to rationalise the timelines for filing applications for approval.

4. These amendments will take effect from the 1st day of October, 2024.

[Clause 26]

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Full Text:

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Section 80G approval timelines rationalised to prevent unintended loss of charitable approval and streamline application processing. Amendments rationalise filing timelines and the processing procedure for funds and institutions seeking approval under section 80G, addressing cases where entities cannot meet existing deadlines and preventing unintended permanent loss of approval; the change preserves donor deduction eligibility and takes effect from the commencement date specified in the Bill.