Archive · 28 Nov 2025
Charitable Trusts Must Register With Income-Tax Dept
The income-tax department has announced that public charitable trusts and societies must register with them to get tax exemptions.
This registration is also needed for educational and medical institutions that do charitable work and want tax benefits.
The commissioner of income-tax (exemptions) in Hyderabad explained that these organisations must keep proper records, get their accounts audited, and file reports on time.
Non-profit organisations that are approved can give special certificates to donors, allowing them to get tax deductions.
The department also said that some educational institutions don't need to register but must still file their income returns.
The I-T department is planning to hold a programme for chartered accountants to explain the new tax laws coming in 2026.
They also advised people working in the infotech sector to be accurate and timely with their tax returns to get quick refunds.
Public charitable trusts and societies must register with the income-tax department to claim tax exemptions.
Educational and medical institutions involved in charitable activities must also register for tax exemptions.
Exemptions are subject to maintaining books of account, auditing, and filing annual reports.
Non-profit organisations approved under Section 80G can issue certificates to donors for tax deductions.
Government-supported and private educational institutions with annual gross receipts below ₹5 crores are exempt from registration but must file income returns.
- Who
- Public charitable trusts, societies, educational and medical institutions, non-profit organisations, and the income-tax department.
- What
- Mandatory registration with the income-tax department for tax exemptions and the conditions for maintaining such exemptions.
- When
- The changes to procedures and laws were effective from April 1, 2021. The new I-T Act, 2025, will be effective from April 1, 2026.
- Where
- The income-tax department's exemptions charge for the Telangana and Andhra Pradesh Region is headed by the commissioner of income-tax (exemptions) at Aayakar Bhavan, Basheerbagh, Hyderabad.
- Why
- To ensure compliance with tax laws, maintain transparency, and facilitate the process of claiming tax exemptions and deductions.
- Mandatory Registration
- Public charitable trusts and societies must register with the income-tax department to claim tax exemptions.
- Conditions for Exemption
- Exemption is subject to maintaining books of account, auditing, and filing annual reports.
- Section 80G Certificates
- Approved non-profit organisations can issue Section 80G certificates to donors.
- Exemptions for Educational Institutions
- Government-supported and private educational institutions with annual gross receipts below ₹5 crores are exempt from registration but must file income returns.
- Annual Statement Filing
- Non-profit organisations must file their annual statement by May 31 to allow donors to claim tax deductions.
- Fund Utilisation
- NPOs must use funds only for the objectives mentioned in their original registration deed.
- Registration Cancellation
- The I-T commissioner can cancel an NPO's registration for violations.
- Upcoming CA Outreach Programme
- The I-T department plans to organise a CA outreach programme to create awareness about the new I-T Act, 2025.
- Tax Refund Tips
- Employees in the infotech sector are advised to ensure accuracy and timely e-verification of their returns for quick refunds.