ISLAMABAD, Dec 17: The Central Board of Revenue has amended various rules of the Income Tax Rules, 2001, including those related to approval of organizations, said an official announcement issued here on Saturday.
According to the amendments, in rule 212, clause (a) of the sub-rule (2) after the semi colon at the end, the word “and” shall be added. In clause (b) of the same sub-rule the semi colon and word “and” shall be omitted, while clause (c) shall be omitted.
The approval granted under rule 212 will remain in force for the subsequent years until withdrawn under rule 217. This will, however, be subject to filing of following documents by the organization along with annual return of income for the corresponding tax year.
The documents be supported by the statement of audited accounts as mentioned in clause (d) of sub-rule (2) of rule 211, a statement of income and donations received and money paid, a list of donors and beneficiaries with full addresses, and a statement showing the money set apart or kept unutilized with reasons thereof.
The amendments has also omitted rule 216.
POWER TO WITHDRAW APPROVAL RULE 217: The commissioner may, at any time, withdraw approval granted under rule 212, (a) if satisfied that the constitution, memorandum and articles of association, trust deed, rules and regulations or bye-laws, as the case may be, specifying the aims and objects of the organization, do(es) not provide for prohibiting the making of any charges in the constitution, memorandum and articles of association, trust deed, rules as specified in clause (h) of sub-rule (1) or rule 213.
The commissioner may withdraw approval if the organization has been or is being used for personal gain of any particular reason or a group of persons as specified in clause (a) of sub-rule (2) of rule 213; if the organization has been propagating the view of a particular political party or a religious sect as specified in clause (a) of sub-rule (2) of rule 213; if the organization has been or is being managed in a manner calculated to personally benefit its members or their families as specified in clause (c) of sub-rule (2) of rule 213.
Approval can also be withdrawn if the organization has not been or will not be able to achieve its declared aims and objects in view of its set up administration or otherwise as evaluated and certified by an independent certification agency as specified in clause (d) of sub-rule (2) of rule 213.
The commissioner may withdraw approval if the organization fails to submit a copy of its statement of audited accounts as mentioned in clause (d) of sub-rule (2) of rule 211, along with return of income for the relevant tax year.
Approval can also be taken back if the organization fails to submit a statement of income and donations received and money paid; a list of donors and beneficiaries with full addresses and a statement showing the money set apart or kept not utilized with the following reasons: the organization has failed to fully utilize its income and donations received by it for achieving the purpose for which it was established, and the reason for setting apart or for not utilizing the money referred to in clause (d) of rule 216 is not valid.
No approval shall be withdrawn under sub-rule (1) unless the organization has had an opportunity to show cause against the action proposed to be taken.
If the commissioner decides to withdraw an approval under sub-rule (1) he/she shall intimate the organization and certification agency, in writing, of the decision, including a statement of reasons for the decision.
