February 6, 2025

Trusts & Donors, Take Note! The New Substantial Contribution Rules Explained

The amendment to Section 13(3) of the Income Tax Act redefines substantial contribution, impacting how trusts manage transactions with donors to maintain tax exemption under Sections 11 and 12. New Definition of Substantial Contribution A contributor will be classified as a substantial contributor if: Breakdown of the Criteria Exclusion of Relatives and Associated Businesses Previously,…

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