Saturday, 23 August 2008

UPA Has no Charity

 UPA has no Charity

By Gopal K Agarwal,

Income tax amendment affecting donations to charitable organizations

Imposing tax on these charitable organisations by the Government is injustice to the people and is absolutely unfair. On one hand, Government gives subsidies to many commercial organisations and on the other hand, it is taxing these organisations, which run gaushalas and other charitable projects for the welfare of all.

Social service has been an important aspect of our life. Our scriptures have motivated people to devote their resources and energy for the welfare of our fellow men guiding us to a life of austerity. This path has led to establishment of many charitable and religious institutions in the country. It has been one of the main reasons for our social fabric to remain intact, in spite of being devoid of any regulatory mechanism for social security. Whether as the welfare of the destitute and incapable or the old people stray animals etc., these institutions depended on the donations from the influential and wealthy people since centuries. Now slowly and steadily, the government is putting cuts on these channels without establishing an alternative welfare mechanism.

A recent announcement in the Budget 2008-09 has amended section 115 BBC of Income Tax Act, incorporating taxation on all anonymous donations at a flat rate of 30 per cent. It will affect lakhs of charitable institutions across the country. It is unthoughtful and inhuman on the part of the Government that it has imposed 30 per cent tax on guptadan received by the charitable trusts. As a result of such a tax, a large number of small and big non-governmental organisations engaged in charitable activities for the underprivileged would be left with lest resources. These institutions will now have to pay 30 per cent tax on the entire quantum of their receipts compris ing anonymous donations.

Imposing tax on these charsta ble organisations by the Gover ment is injustice to the people and is absolutely unfast On one hand, Government gives subsidies to many commercial organisations and on the other hand, it is taxing these organisations, which run gaushalas and other charitable projects for the welfare of people.

Unlike foreign countries, India does not have any comprehensive policy on social security. In this situation, at least Government should not impose tax on these charitable organisanons, because all these institutions are for the support of the needy people. Guptadan in itself is a sonakar for the people. Our Shatrus preach donations for charitable causes without expecting any name or fame in return.

A petition has been filed before the  Petition Committee of Rajya Sabha, under the Chairmanship of Shri M. Venkaiah Naidu, against the imposition of this tax.. The petition was admitted on April 16. 2008. The petition is for considering grant of exemption from payment of income tax to certain categories of charitable organisations. The types of charitable organisations being recommended for Income tax exemption are orphanage, old age home, neat house and cow pen (Panjrapole and Gaushala) institutions which are related to handicapped people, hospitals for birds and cattle, institutions which provide free treatment for deadly diseases, inshunans dich pro Vide free shelter to oppressed people, institutions which serve meal free of cost, institutions which are meant for providing humanitarian assistance in case of natural calamity and disaster and institutions which are related to wadow and boyvoted women. The petitioner has prayed that since the aforesaid categories of charitable organizations take care of the safety, well being and survival of the oppressed and destitute persons, take care of the treatment of terminally ill patients, protect cattle and livestock including infirm animals, especially draught cattle and help translate the ideals of the Constitution, they should be exempted from payment of Income tax

The categones of charnable institutions mentioned in the petition, working for physically challenged bird and animal hospe tals, institutions treating comical disease like canoer free of cont providing fome relief to the victures of any calamity providing Ince meals and the organisations work ing for widows and destinite should not be saved rather they should be encouraged by the government.

We need to build public opinion in favour of this petition and request the committee to with hold the Government from imposing this tax.