PANAJI
A wave of concern is raging within Goa’s non-profit NGO sector after several registered trusts and organisations got notices from the Income Tax Department mandating physical hearings and document verification at Bengaluru to renew their income-tax exemption registrations.
The Goa Chamber of Commerce and Industry (GCCI) has officially petitioned the authorities to do away with the physical hearings and instead make the process faceless online.
The notices, issued under the revised compliance framework of the Finance (No.2) Act, 2024, have asked these charitable institutions to appear in person before the Commissioner of Income Tax (Exemptions) in Bangalore.
This comes after the Finance Ministry moved to centralise exemption registration procedures under Section 11 of the Income Tax Act last year and mandated physical verification of documents and activities for renewal of the crucial tax-exempt status for the sector.
Several organizations in Goa have raised concern that travelling to Bangalore that too at a short 10 or 12 day notice puts an undue financial and logistical burden on them, especially the smaller ones which operate with limited resources.
“We are already stretched thin managing our operations and community programs. Sending representatives to Bangalore for hearings adds unnecessary strain,” said a trustee of a Bardez-based educational NGO.
Some chartered accountants and tax consultants contacted by The Goan said that the Income Tax Department has the authority to summon such entities for verification but the lack of regional facilitation centers or digital (virtual) alternatives raises questions.
Recently a case involving Guirim-based Amazing Grace Charitable Trust, first highlighted the issue. The Trust was issued notice and summoned to Bangalore for hearings related to its exemption renewal for the last financial FY 2024-25.
A trustee of another NGO told The Goan that they got a notice last week summoning them for the same purpose to Bangalore on October 21, which is right in the middle of the Diwali festival.
"We have been asked to bring along multiple documents and even a provisional tax return for the current financial year. No CA will be in a position to comply with it at such short notice," she said.
Some other NGOs have petitioned the Income Tax office in Panaji which also functions as a Income Tax Appellate Tribunal seeking relief or remote hearing options.
The issue is not restricted to Goa but across the nation and advocacy groups are urging the Ministry of Finance to reconsider the centralized approach and implement regionally distributed verification mechanisms or digital alternatives.
As the October 31 deadline for filing returns approaches, the sector remains in a state of limbo, with the compliance uncertainty threatening to curtail their operations with their tax exemption status in suspense.
