The Central Board of Direct Taxes (CBDT), which monitors the tax regulations in India, released a notification on 13th July 2021 about the Contribution to Patanjali Research Foundation to get exemption on tax. Now the Patanjali Research Institute founded by ‘Patanjali Research Foundation Trust’ will fall under the “Research Association” category, said by the central government. In this article, we will discuss Contribution To Patanjali Research Foundation To Get Tax Exemption.
Why does Patanjali Research Institute get Tax Exemption?
As per clauses (ii) of sub-section (1) under the rule of the Income Tax Act 1961 and the 5C and 5D section of Income-tax rules 1962, a research association, who are contributing to the betterment of the society can get the tax exemption.
The same will be effective from the date of publication in the Official Gazette i.e the financial year 2021-22 and it will be continued from the Assessment Years 2022-23 to 2027-28.
Benefits of this Initiative by Patanjali
The people who will donate the money to the Patanjali research institute will get the benefits of tax exemption at the time of ITR Filing. That means, that all the amount a person is donating to the Patanjali trust, will be minus from the total income and so, this amount will be exempted from the tax slab.
Challenges for Patanjali
To maintain such benefits, the Patanjali research institute will have to prove that all the research activities have been supervised only by their team. Also, they will have to maintain all the transactions and share the donation amount and utilization of such money with a proper record after having a proper audit by the ITR Filing authority or the income tax department.
The Trust will have to keep the transparency between the collected donation amount and let the people know how they are using it in their research.
Existence of Patanjali Research Institute
In May 2017, the “Patanjali Research Foundation Trust” established the “Patanjali Research Institute” in the presence of India’s current prime minister, Ms. Narendra Modi. Baba Ramdev claims that the tax benefit will help them in the mission of research and making Patanjali, the world’s largest FMCG company.
Further Businesses in 2021
Patanjali has been a big brand in India that sells products from groceries to beauty items and more. In the fiscal year 2020-21, the company’s turnover was 30,000 crore rupees.
And now the Patanjali wings have been in the list of the top FMCG manufacturers after Hindustan Unilever.
Income Tax Department issues refunds worth Thousand Crores till 5th July
Moreover, If you want any other guidance concerning ITR Filing, please feel free to talk to our business advisors at 8881-069-069.
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