No renewals for 80G

Section 80G of the Income Tax Act provides for deduction to donors in respect of donations made to certain funds and institutions established for "charitable purpose.” Earlier, the 80G certificate issue by the Income Tax authorities had a validity period ranging from one to a maximum of five years.

Most 80G certificates expire on March 31. Formerly, as per section 80G(5)(vi) approval under section 80G had "effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval.” The Finance (No 2) Act, 2009 omitted clause (vi) of section 80G(5) with effect from October 1, 2009. According to the memorandum explaining the provisions of the Finance (No 2) Bill, 2009, clause (vi) of section 80G(5) is omitted "to reduce the undue hardship caused to bona fide institutions and funds and also to eliminate wastage of time and resources of the tax administration in renewing approvals from time to time.”

The effects of this amendment are that approvals once granted shall continue to be valid in perpetuity. Therefore all the approvals granted after October 1, 2009 shall be valid for all time to come unless withdrawn. Existing approvals expiring after October 1, 2009 need not be renewed and shall be deemed to be continued in perpetuity, unless specifically withdrawn. Approvals expiring before October 1, 2009 will have to be renewed once and after such renewal these shall be valid for perpetuity, unless specifically withdrawn.

NOSHIR H. DADRAWALA

Chief Executive

Centre for Advancement of Philanthropy

noshir101@gmail.com

Helpline needed

I would like to share with Parsiana’s readers some thoughts on an issue that should concern us all, considering anyone could be in the situation I describe below.

A couple, both in their early 80s, lived alone. Their only son, a doctor, settled in the United States, made occasional visits to India and had employed two maids to look after his parents. The wife died in the night and the husband, already crippled with arthritis, became totally useless, experiencing the trauma. Some help came from the night maid who summoned the immediate neighbor, a non-Parsi, who proved to be a true Samaritan. He handled the problem of obtaining the death certificate from the doctor who was attending on the deceased and contacted those relatives whose names the husband could recall. A younger relative and her husband who could be contacted obtained the death certificate from the Bombay Municipal Corporation with the help of the neighbor and made arrangements for the funeral.

Can we not work out a system of a helpline that people in such situations can reach out to? Can the energies of our young not be harnessed towards this end? The Bombay Parsi Punchayet trustees would be best suited for this purpose. If not, then can we not form a group on the lines of an NGO (nongovernmental organization) to provide this help?

KHORSHED JAVERI