Charities and trusts running education institutes, hospitals and religious places must keep records of contributions and loans and borrowings to get income tax exemptions. The Central Board of Direct Taxes (CBDT) has brought out a comprehensive list of documents that have to be maintained for exemptions.

The move aims to stop evasion or diversion of funds. The Income Tax (24th Amendment) Rules said the documents will have to be maintained by funds, institutions, trusts, universities and other educational institutions and hospitals and other medical institutions. Tax advocate Narayan Jain said the new norms will “create more complications” for trusts, edu cational institutions and hospitals.

“It requires them to keep details of voluntary contributions with details of donors, application of income, money invested, application out of income accumulated, a record of loans and borrowings, a record of properties held. All welfare activities can’t be taken care by the government alone. The role of trusts and such institutions cannot be undermined,” he said.