CARE seeks amendment in DTC during Budget

Global agency CARE today said the government should amend the provisions of the Direct Taxes Code (DTC) in the forthcoming Budget so that balances of non-profit organisation (NPOs) are not treated as income.

"...Retained balances of specific-purpose grants received by NPOs should not be treated as 'income' so long as it is applied for the specified purpose," CARE said in a statement.

It asked the government that NPOs should be allowed to retain 15% of general contributions or other incomes to provide a buffer for ongoing activities.

"Considering that taxable income of the NPOs are computed largely on the same lines as commercial organisations, the DTC must also provide carry forward and set-off of deficit in any financial year against the surplus in subsequent years," the agency said.

The DTC, which seeks to harmonise the direct taxation system in the country, is going to come into effect from April 1, 2012.

CARE also said that the government should increase outlay in the Budget on education and healthcare for poor women and girls from disadvantaged communities.