Reliance charitable trust has challenged the tax department’s decision to cancel its registration, with officials citing alleged commercial activity behind renewal rejections. It isn’t alone: PD Hinduja Hospital and ISKCON are also appealing similar orders. The disputes threaten tax relief for the trusts and reduce eligible donor deductions tied to registered charitable status.
Three prominent hospitals in Mumbai and an international spiritual organisation, all operating as charitable trusts, have been denied Income Tax exemption. Authorities said the organisations were essentially running commercial activities rather than purely charitable work. The move raises fresh questions about how “profit motive” is defined and enforced for tax benefits granted to trusts.
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