Budget 2024-25: FM proposes Merging of 2 Tax Exemption Regimes to One for Charities

In the 2024-25 Union Budget, Finance Minister Nirmala Sitharaman proposed consolidating two existing tax exemption regimes for charities into a single framework. The current system, which includes Section 12A and Section 80G of the Income Tax Act, offers separate exemptions for charitable organizations and donations. The new proposed regime aims to streamline compliance and reporting requirements, enhancing transparency and reducing administrative burden for charities. The move is intended to simplify the tax structure, ensuring that charitable organizations can more efficiently manage their operations while adhering to regulatory standards.