Section 12AB crackdown: Trusts in grey zone as ‘charity’ tested by scale, sustainability
Indian tax authorities are increasing scrutiny on charitable trusts. This is leading to disputes over what constitutes a “charitable purpose.” Hospitals and religious groups are facing registration cancellations. The issue is moving to courts, which will shape future interpretations. The focus is on whether activities resemble commercial enterprises. This is creating uncertainty for large non-profits.
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