Religious Activity Struck Down in Trust Deed: ITAT Holds Charitable Nature for S. 80G Approval...

The ITAT (Income Tax Appellate Tribunal) has held that a trust can maintain its "charitable nature for Section 80G approval" even if a "religious activity is struck down in its trust deed," provided it does "not violate the 5% threshold limit." Section 80G allows donors to claim deductions for contributions to certain charitable institutions. The tribunal clarified that if a trust primarily engages in charitable activities and the religious component, if any, is minor (not exceeding 5% of its total activities), its eligibility for 80G approval is not jeopardized. This provides flexibility for trusts with mixed objectives.