Trust are those institute which do charity and Income tax department provide them tax relief but it has been misutilised by many who added name of trust to save income tax as reported first bY CAG and now Parliamentary committe on finance has ordered Income tax department to scruitnise very carefully by inspecting utilising certificate and donations of many big hospitals and pvt Medical colleges which are functioning under a trust,whether 85 % of their  income receipt are utilised for benefit and upliftment of poor and down troden or just deposited in another accounts to divert fund to save income tax.

                         A parliamentary panel has rapped a Tata trust for allegedly misusing laws to get income-tax (I-T) exemption for its $100-million grants to Harvard Business School and Cornell University projects.It recommended setting up a group by the I-T department to probe these supposed infringements by the trust.
In its action taken report submitted in Parliament on Thursday, the Public Accounts Committee (PAC) said, “The committee, therefore desires that an expert group under the income tax department may be constituted to look into violations committed by the Tata Trusts afresh, with a view to devising a procedure for proper and systematic evaluation of such trusts.”

                      The Tata Trusts, on the other hand, rebutted the charges, saying there were no violations and all grants made by them were in accordance with laws. The PAC, headed by Congress leader Mallikarjun Kharge, said the contributions by the Tata Education and Development Trust (TEDT) to the two US institutes did not conform to Indian I-T laws.Through a notification in November 2015, the department had retrospectively exempted contributions made by the TEDT from the income tax.

                  Before the notification, the Central Board of Direct Taxes (CBDT) had rejected the claim of the trusts for exemption in 2014, saying there was no international welfare where India's interests were served by these funds. "There was no reason for reversing the decision taken in 2014, in November, 2015...as there was no change in the provisions of the Act (income tax) nor the purpose of the grant of exemption underwent any change so as to attract international welfare in which India was interested,” the report said.

            The PAC said assessments already decided prior to the issue of the CBDT's order were reopened under section 154 of the Act, which was irregular.The contributions were made by the TEDT in eight rounds since 2009-10. These were also spent on constructing a building named, Tata Hall, in Harvard Business School.“It is seen that tax exempted public charity money is being funnelled outside the country to fund rich foreign universities by TEDT as opposed to being used for the benefit of the people of the country,” the report said.

                        Similiarly accounts of many other hospitals and pvt medical colleges were discussed and it is found that in many cases Trust are formed to get income tax relief only and to make black into white by bribing officials.