The Centre is likely to defer levying of taxes on charitable institutions by another year despite recommendation to that effect by an in-house committee set up by the revenue department.
The move to tax the income of charitable institutions was expected to yield at least Rs 3,000 crore for the government every fiscal. While the government is still officially considering the committee report, finance ministry sources said the proposal has already been put on the back-burner.
The in-house committee under a DG I-T had been set up in October this year to evaluate the recommendations of a number of committees including the Parthasarathi Shome committee, on taxing charitable institutions and trusts. The Shome committee had argued that such institutions can be broadly divided into two types according to their source of income