>>> AsiaNews.it <<< Religious charities exempt from new tax

>>> AsiaNews.it <<< Religious charities exempt from new tax: "1 March, 2006
INDIA
Religious charities exempt from new tax
by Nirmala Carvalho

The provision is part of the government’s new economic plan, which seeks to combat money laundering in the country. The 2006 budget confirms the authorities’ commitment to rural development. The Finance Minister has pledged to increase the growth rate to 10%.

Mumbai (AsiaNews) – Development in rural areas, focusing on health and employment of the poor and of village residents, coupled with a war on money laundering including more monitoring of so-called “anonymous donations” to charitable organizations. The Indian government’s budget for 2006 confirms the commitment of the Finance Minister, PC Chidambram, to progress in rural areas, already at the heart of last year’s economic programme, and it also introduced some initiatives which impact on religious institutions.

During yesterday’s budget presentation, Chidambram announced “great sums” of money for education, health care and employment in villages. The ministry is committed to increasing the country’s growth rate from 8 to 10%.

According to information shared in the presentation, the growth of the agricultural sector exceeded 2.1% and the outlook for 2006, continued Chidambram, was good. There was no change announced for taxes on private income and that of social entities.

Particular attention was paid this year to attacking money laundering. To this end, the minister proposed a tax on all anonymous donations to charitable, non-religious organizations, previously exempt. Only donations to religious organizations will not be included in the total income of the organization and will therefore be tax exempt. An anonymous donation has been defined as any voluntary contribution where a trust receiving a contribution does not maintain any records of the identity of the donor. "