Income Tax
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Guwahati: Delhi-based public policy research institution, the Centre for Policy Research (CPR), has had its tax exemption status revoked by the Income Tax Department, effective June 30.

The cancellation comes after a series of events that unfolded over the past year.

The Income Tax Department conducted a survey of CPR’s office on September 7, 2022, and later issued a show cause notice in December 2022.

The notice questioned the tax exemption registration under Section 12A of the Income Tax Act, citing alleged irregularities.

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Among the allegations were payments made to individuals who had not filed their personal Income Tax Returns, as well as concerns over the commercial nature of books published by CPR.

CPR strongly denied these allegations and provided detailed responses to the department. However, despite their efforts, the tax exemption status was ultimately cancelled.

The think tank has expressed its intention to explore all available recourse options.

In addition to the tax exemption cancellation, CPR has faced further challenges as its Foreign Contribution Regulation Act (FCRA) registration was suspended by the Ministry of Home Affairs on February 27.

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This suspension, which lasts for 180 days, has significantly impacted CPR’s operations.

As a result, the institution had to reduce its staff strength by more than half, with foreign donations constituting 75% of its total grants.

Founded in 1973, CPR describes itself as a non-profit, non-partisan, and independent institution dedicated to conducting research that enhances scholarship, informs better policies, and fosters a more robust public discourse on issues impacting life in India.