Proposed New Tax Law In India Will Impact Religious Trusts

The Times of India on Saturday reported that a group of religious trusts held a news conference to oppose certain provisions in the proposed Direct Tax Code pending in India's Parliament.  Under the proposal, trusts or institutions created for the benefit of a particular caste or community would no longer qualify as non-profit organizations.  The bill would subject them to a 30% income tax and to a wealth tax of 1% on their assets over a specified minimum.  This will affect schools, orphanages, homes for the destitute and trusts that manage temples and other religious organizations.