India: Money laundering in garb of donations; govt denies tax benefit to Bioved research society donors


The Central Board of Direct Taxes (CBDT) has denied the benefit of deductions to donors to a Uttar Pradesh-based scientific research society, Bioved, whose certification was withdrawn after a departmental inquiry showed that it had indulged in money laundering under the garb of receiving donations.

The denial of the benefit to donors is on the ground that they were in connivance with Bioved, which was found to be at fault.

Tax experts, however, say the move is in contravention of the guidelines under the income tax law.