Description

Clarification on eligibility of donations made through Social Stock Exchange (SSE) for tax deduction under Section 80G of the Income-tax Act, 1961.

Summary

BSE has issued a clarification regarding the eligibility of donations made through the Social Stock Exchange (SSE) for tax deduction under Section 80G of the Income-tax Act, 1961. This circular provides guidance to donors and Not-for-Profit Enterprises (NPEs) registered on the SSE platform regarding the tax treatment of donations.

Key Points

  • Donations made through the Social Stock Exchange (SSE) platform are eligible for tax deduction under Section 80G of the Income-tax Act, 1961
  • NPEs registered on SSE can receive donations that qualify for 80G tax benefits
  • Clarification issued to address queries from donors and NPEs regarding tax treatment
  • Applies to all eligible NPEs listed on the SSE platform
  • Donors can claim tax deductions as per the provisions of Section 80G

Regulatory Changes

No new regulatory changes introduced. This is a clarification of existing tax provisions applicable to SSE donations.

Compliance Requirements

  • NPEs must ensure they meet Section 80G registration requirements to enable donors to claim deductions
  • Donors should verify the 80G eligibility status of NPEs before claiming deductions
  • NPEs should provide necessary documentation to donors for tax filing purposes
  • All donations through SSE must comply with Income-tax Act provisions

Important Dates

  • Circular Date: December 16, 2025
  • Effective: Immediate

Impact Assessment

Positive Impact:

  • Encourages donations through the SSE platform by confirming tax benefits
  • Provides clarity to donors and NPEs on tax treatment
  • Supports growth of the Social Stock Exchange ecosystem
  • Benefits NPEs by making donations more attractive to donors

Market Impact: Low - primarily affects NPE segment and individual/corporate donors, does not impact equity or debt trading segments

Stakeholders Affected: Not-for-Profit Enterprises (NPEs) registered on SSE, individual and corporate donors, tax consultants

Impact Justification

Clarification on tax benefits for SSE donations affects NPEs and donors but does not impact trading operations or listed companies directly