The CAG has slammed the income tax department for not formulating a data sharing mechanism with the Home Ministry to keep track of foreign contributions received and their utilisation for the declared purpose by charitable trusts and institutions.
The Comptroller & Auditor General's (CAG) Performance Audit report on 'Exemptions to Charitable Trusts and Institutions' noticed 35 assessment cases where the trusts/institutions received foreign contributions without having registration under FCRA, mismatch of figures of foreign contribution shown in ITR and that disclosed with the MHA, donation of foreign contribution by recipient trust to other trusts that were not registered under the FCRA 2010 or investment in foreign contribution in speculative mode.
In all the cases, the department had allowed exemption on such foreign contributions involving tax effect of ₹182.10 crore, said the report tabled in Parliament on Monday.
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