Mumbai: Community Accountants Chartered Bombay (BCAS) said that celebrities and other individuals who have collected donations from friends and relatives to help migrant workers, covid patients and their families should not be taxed.
This fund was accepted by them as a guardian for the benefit of others, BCA had shown a letter to the Chairperson of the Direct Tax Center (CBDT).
BCA has referred to a press record issued by the CBDT on June 25.
This note provides income tax exemption (I-T) in connection with funds received by a taxpayer from employers or others for Covid treatment.
The funds are clearly received by these individuals with the “main transfer of titles for funds that support beneficiaries”, BCAS said.
Technically, the funds received by them are not taxable because they have received funds in the supervisory capacity for the benefit of others.
The supervisor is responsible for taxes in the same way and at the same level as beneficiaries.
Because the beneficiaries have been released below the press record, the guardian will also be released, it explains.
BCAS also suggests certain protection.
Those who raise funds (intermediary celebrities and other individuals) must spend money directly for Covid assistance or donate it with I-T-registered charity trust.
Every amount maintained by them for more than 6 months or up to periods such as CBDT can determine should not be entitled to tax assistance.
If they have received more than Rs 10 lakh, the submission of the audited statement with the return of I-T they can be introduced, so the same thing can be examined by the I-T authorities.