Donations to lower tax slab can make taxman see red

The Income-Tax (I-T) department has issued around 8,000 notices to salaried employees, self-employed individuals, and companies who made significant donations to charitable trusts. The department suspects potential tax evasion, as records of these donations do not correspond with the income and expenses of those making them. Sandeep Bajaj, managing partner, PSL Advocates and Solicitors, says, “Notices were issued for donations made during the assessment years of 2017-18 through 2020-21.”