Section 40 - Amendment of section 80G. - Finance Act, 2023

Amendment of section 80G. 40. In section 80G of the Income-tax Act, (I) in sub-section (2), in clause (a), sub-clauses (ii), (iiic) and (iiid) shall be omitted with effect from the 1st day of April, 2024; (II) in sub-section (5), (A) with effect from the 1st day of October, 2023, (i) in the first proviso, for clause (iv), the following clause shall be substituted, namely: (iv) in any other case, where activities of the institution or fund have (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced and where no income or part thereof of the said institution or fund has been excluded from the total income on account of applicability of sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or section 11 or section 12 for any previous year ending on or before the date of such application, at any time after the commencement of such activities: ; (ii) in the second proviso, (a) in clause (ii), (1) in the opening portion, after the word, brackets and figures clause (iii) , the words, brackets, letter and figures or sub-clause (B) of clause (iv) shall be inserted; (2) in sub-clause (b), for item (B), the following item shall be substituted, namely: (B) if he is not so satisfied, pass an order in writing, (I) in a case referred to in clause (ii) or clause (iii) of the first proviso, rejecting such application and cancelling its approval; or (II) in a case referred to in sub-clause (B) of clause (iv) of the first proviso, rejecting such application, after affording it a reasonable opportunity of being heard; ; (b) for clause (iii), the following clause shall be substituted, namely: (iii) where the application is made under sub-clause (A) of clause (iv) of the said proviso or the application is made under clause (iv) of the said proviso as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the approval is sought; ; (B) in the third proviso, for the words first proviso , the words second proviso shall be substituted.