RCITs may give tax relief to non-profit organisations

The Regional Commissioners of Income Tax (RCITs) are likely to register the non-profit organisations (NPOs), institutions/funds/trusts/societies and give income tax exemption after necessary documentation. At present, the NPOs are bound to submit application to the CBR for registration to get income tax exemption.
The Board has proposed amendments to the Income Tax Rules, 2002, through an SRO.773(I)/2006 issued on Tuesday for this purpose. It has asked the stakeholders to comment on the draft within 15 days, so that viable suggestions could be incorporated in the final notification.
The NPOs/NGOs would be required to submit application to the RCIT concerned instead of the Board. In this regard, necessary changes in the relevant form have also been proposed. On receipt of an application, the RCIT concerned would complete necessary registration formalities.
The approval shall not be granted to an organisation if the RCIT feels that any of the laid down requirements have not been fulfilled. The non-profit organisations would not be required to submit their applications to the CBR secretary under the new rules.