An NGO has urged Finance Minister Pranab Mukherjee to continue tax exemption for them in the proposed Direct Taxes Code in order to encourage non-profit organisations to undertake welfare activities. Their view is that Taxes will put a constraint resource generation of charitable bodies and reduce their ability to undertake welfare activities. It said that government grants should continue to be excluded from gross receipts of such organisations. It also said that capital expenditure incurred for construction of buildings, acquisition or equipment required for conducting religious or charitable activities should also be treated as an outgoing for charitable or religious purposes.
