Union Budget 2023 For NGOs
Union Budget 2023 For NGOs
Union Budget 2023 For NGOs
Chartered Accountants
UNION BUDGET
2023
&
NGOs
CONTENTS
Amendments under Income Tax Act
1. Reduction of the time limit to furnish the Form 10 & 9A to 31st August
from 31st October
2. Transfer to other Organizations & Claim of Expenses
3. Provide for payment of tax on assets if a trust does not apply for
exemption after getting “provisional exemption” and for “re-exemption”
after “expiry of exemption”
4. Combining provisional and regular registration in some cases
5. Conditions that are required to be satisfied in the case of application
(Expenditure) for charitable or religious purposes reclarified
6. Clarity on tax treatment on replenishment of corpus and on repayment of
loans/borrowings
7. Amendment of section 194R
8. Donations to Fund not eligible for exemption u/s 80G now
9. Amendment in 206AB Declaration & TDS of non-filers of Income Tax
Return
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S. Sahoo & Co. Chartered Accountants
Presently the due date for furnishing Form 10 & Form 9A is same as that of the
Annual Income Tax Return. However, the audit report in form 10B/10BB has to be
filed one month before the due date of filing the Income Tax Return by the Auditors
which includes the details of Form 10/9A therein. Since the due date of furnishing
Form 10B/10BB is one month before the due date of furnishing the ITR, the auditors
find it difficult to report.
Proposal in the Budget:
It is proposed to provide for filing of Form No. 10/9A at least two months prior to the
due date specified under sub-section (1) of section 139 for furnishing the return of
income for the previous year.
Effective Date:
These amendments will take effect from 1st April, 2023 and will accordingly apply to
the assessment year 2023-24 and subsequent assessment years.
Effective Date:
These amendments will take effect from 1st April, 2024 and will accordingly apply in
relation to the Assessment Year 2024-25 and subsequent assessment years.
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S. Sahoo & Co. Chartered Accountants
Effective Date:
These amendments will take effect from 1st April, 2023 and will accordingly apply to
the assessment year 2023-24 and subsequent assessment years.
• Presently the trusts and institutions are allowed to make application for the
provisional registration before the commencement of activities under section
12A & 80G of Income Tax Act and
• The trusts and institutions, which have already commenced their activities,
shall make application for a regular approval.
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S. Sahoo & Co. Chartered Accountants
Effective Date:
- Carry forward and set off of excess application is not allowed [Explanation 2
to clause (23C) of section 10 of the Act for the trust or institution under first
regime and Explanation 5 to sub-section (1) of section 11 of the Act for the trust
or institution under second regime].
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S. Sahoo & Co. Chartered Accountants
- The application out of corpus or loans or borrowings before 01.04.2021 should not
be allowed as application for charitable or religious purposes when such amount is
deposited back or invested in to corpus or when the loan or borrowing is repaid.
- If the trust or institution invests or deposits back the amount into corpus or repays
the loan within 5 years of application from the corpus or loan, then such
investment/depositing back in to corpus or repayment of loan will be allowed as
application for charitable or religious purposes.
Effective Date:
These amendments will take effect from 1st April, 2023 and will accordingly apply to
the assessment year 2023-24 and subsequent assessment years.
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S. Sahoo & Co. Chartered Accountants
Even in the absence of PAN, the TDS will be done at normal rate rather than double
rate.
Earlier suppliers supplying Goods or services selling on e-commerce portals were not
allowed to register themselves under the Composition Scheme.
12. Integration of GST Portal with other portals like Income Tax,
ROC etc.
Proposal in the Budget:
Section 158A Inserted – Sharing of the information by GST Portal to other Systems
notified by Government furnished by the registered person in his return or in his
application of registration or in his statement of outward supplies, or the details
uploaded by him for generation of electronic invoice or E-way bill or any other
details, as may be prescribed, on the common portal with such other systems, as may
be notified.
“CHINTA NAHI”
“CHINTAN”
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