Income Tax department sends notices over donations to charitable trusts

The income tax department in India has issued notices to around 8,000 taxpayers on account of them making large donations to charitable trusts, which are believed to be attempts to evade paying tax. Tax officials say that these individuals and entities have made donations not commensurate with their earnings, while the donated amount is the exact sum required to get an exemption or lower the tax slab. Officials are now investigating independent

India's income tax department has sent notices to about 8,000 taxpayers who have made large donations to charitable trusts, suspecting them to be attempts at tax evasion. Data analytics suggested these taxpayers were making donations disproportionate to their income and expenditure, officials told ET.