Section 115BBC → Section 130
Anonymous donations to be taxed in certain cases
Quick Answer
Section 115BBC of the Income Tax Act, 1961 (Anonymous donations to be taxed in certain cases) corresponds to Section 130 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115BBC
The starting point is Section 115BBC of the Income Tax Act, 1961 — anonymous donations to be taxed in certain cases. Taxes anonymous donations received by charitable trusts at a flat 30%, subject to a threshold (5% of total donations or Rs. 1 Lakh).
The new code maps this to Section 130: the provision is retained and renumbered as Section 130 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Anti-money laundering provision for the NGO sector.
On the ground, changes to Section 115BBC carry a High impact. Forces trusts to maintain detailed donor records.
Sec 115BBC
Provision Summary
Taxes anonymous donations received by charitable trusts at a flat 30%, subject to a threshold (5% of total donations or Rs. 1 Lakh).
Sec 130
Provision Summary
Retained. Anti-money laundering provision for the NGO sector.
Key Changes & Highlights
- Religious trusts remain exempt from this unless the anonymous donation is specifically for an educational or medical institution run by them.
Related Sections
Frequently Asked Questions
What does Section 115BBC of the Income Tax Act 1961 deal with?
Section 115BBC of the Income Tax Act, 1961 covers anonymous donations to be taxed in certain cases. Taxes anonymous donations received by charitable trusts at a flat 30%, subject to a threshold (5% of total donations or Rs. 1 Lakh).
Where does Section 115BBC of the ITA 1961 go under the Income-tax Act, 2025?
Section 115BBC of the Income Tax Act, 1961 maps to Section 130 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Anti-money laundering provision for the NGO sector.
Why does the change to Section 115BBC matter for taxpayers?
The transition impact for Section 115BBC is rated High. Forces trusts to maintain detailed donor records.
What are the key changes to Section 115BBC under the Income-tax Act, 2025?
Religious trusts remain exempt from this unless the anonymous donation is specifically for an educational or medical institution run by them. These points are specific to Section 115BBC (Anonymous donations to be taxed in certain cases).
Disclaimer: This mapping of Section 115BBC (Anonymous donations to be taxed in certain cases) to Section 130 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115BBC is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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