Up to Assessment Year 2018-19, there were no restrictions on mode of payments by charitable or religious trusts or institutions. There were also no checks on whether such trusts or institutions follow TDS provisions. This has resulted in missing audit trail for verification of application of income.
In order to encourage a cash-less economy and to reduce the generation and circulation of black money, Section 11 of the Income-tax Act was amended by the Finance Act, 2018 to provide that the trusts or institutions shall also be required to follow the provisions of TDS and will make all expenses in excess of Rs. 10,000 through banking channels.
Consequently, the provisions of TDS disallowance under section 40(a)(ia) and expenses disallowance under section 40A(3) and 40A(3A) were made applicable while computing the application of income in case of trusts or institutions.
Consequently, in new ITR 7, the relevant changes have been made to incorporate the effect of above amendments.
This change will impact [ITR-7]
Refer:www.taxmann.com
In order to encourage a cash-less economy and to reduce the generation and circulation of black money, Section 11 of the Income-tax Act was amended by the Finance Act, 2018 to provide that the trusts or institutions shall also be required to follow the provisions of TDS and will make all expenses in excess of Rs. 10,000 through banking channels.
Consequently, the provisions of TDS disallowance under section 40(a)(ia) and expenses disallowance under section 40A(3) and 40A(3A) were made applicable while computing the application of income in case of trusts or institutions.
Consequently, in new ITR 7, the relevant changes have been made to incorporate the effect of above amendments.
This change will impact [ITR-7]
Refer:www.taxmann.com
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