1. Reporting by Company of specified financial transaction (SFT)
For keeping a watch on the high-value transactions done by the taxpayers, the Income Tax Act has framed a concept to furnish a Statement of Financial Transactions or reportable account (SFT).
Accordingly, Company (listed/unlisted) is required to report transactions like
– 10 lakhs or more received from a person against purchase of debenture/ bonds/ shares/ mutual funds/ buyback of shares
– Dividend issued by a company
2. Donation received by Trust
All the Charitable Trusts are required to file Statement of Donations in Form 10BD with the Income Tax Department on or before 31 May 2023 to report the details of Donations received during the FY 2022-23. Post filing such a statement, the Trusts/ Institutions are also required to issue certificates in Form 10BE to all the Donors appearing in the said statement.
3. Income not received by trust
Where trust fails to apply income as it was not received, trust has an option to apply such income for such purposes during the previous year immediately following the previous year in which the income was derived.
Above such option is to be exercised in form 9A to be furnished electronically 2 months prior to the due date of filing the return.
4. 85% of Income not applied by trust
Where 85% of the income of trust is not applied for charitable purposes, the NGO is required to accumulate or set apart such income for future application (max 5 years).
Above such option is to be exercised in form 10 to be furnished electronically 2 months prior to the due date of filing the return.