Wednesday, May 31, 2023

IT dept. cancels tax benefits for PFI: “Spreading communalism”

The Income Tax Department has canceled 80G benefit enjoyed by Popular Front of India (PFI), an Islamic organization, citing violation of Income Tax rules benefiting to a particular society.

In their order, the IT department mentioned that PFI violated section 13(1)(b) of the IT Act, and thereby, attracted section 12AA(4)(a) of the said Act.

Section 13(1)(b) states that the exemptions given to a charitable trust or institution shall not be applicable if “A trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste.”

Considering their activities of spreading communalism and “destroying goodwill and brotherhood among communities,” the IT department cancelled the 80G benefits, which provides an incentive for people to participate in philanthropic activities, of PFI. 

Yogi Adityanath-led Uttar Pradesh government has called for a complete ban on PFI after authorities arrested 25 members of the organization for propagating riots across the state in January 2020. 

Meanwhile, the Central government also informed the Supreme Court of India in April this year that they are in process of banning it completely.


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