A question of trusts

In the past seven months, more than 100 non-governmental organisations (NGOs) lost their licences under the Foreign Contribution Regulation Act (FCRA), closing a major source of funding for them. The government has tightened disclosure norms and provided a framework for fund usage. The Central Board of Direct Taxes has notified, with effect from October 1, changes in reporting rules, stipulating that NGOs declare whether their activities are of a charitable or religious nature (or both) to claim tax exemption. At the same time, in April 2023, the Income Tax Department sent 8,000 notices to large donors on grounds that the