At present, Charitable Trusts registered with the Income Tax Department are allowed to accumulate a portion of unspent Incomes u/s 11(2) of the Income Tax Act, 1961 without payment of Income Tax.
One measure to nudge Charitable Trusts to spend more of their Accumulated Income and Reserves to fight the CoViD19 pandemic would be to prohibit them to accumulate income u/s 11(2) or make it mandatory to transfer unspent accumulated incomes to PM CARES Fund. This will bring considerable amount of public charitable money to fund CoViD19 pandemic.
CA Nirmal Ghorawat's Blog 