Supreme Court To Decide If Charity Registration Alone Lets Donors Claim Tax Deductions

The Supreme Court decided to examine whether registration of a trust under Section 12AA of the Income Tax Act, 1961 automatically entitles its donors to claim tax deductions under Section 80G.

A Bench of Justices J.B. Pardiwala and K.V. Viswanathan issued notice on a Revenue appeal challenging the Chhattisgarh High Court’s ruling that once charitable registration is granted under Section 12AA, approval under Section 80G(5) cannot be denied merely for engaging in religious activities.

The Revenue contended that 80G approval requires fresh verification of charitable purposes and cannot be presumed from 12AA registration. The Court issued notice returnable within four weeks.

[Commissioner of Income Tax v Sadhumargi Shantkranti Jain Society]