Budget is generally a disappointment for the NGO community, with only a very few benefits.
CSR expenditure of companies not to be tax deductible. Thus a big disappointment for companies, who now may resort to camouflage it under other sections. Or it may benefit NGOs who have S.35AC registration.
Other provisions for NGOs (generally referred to as Charitable Trusts)
Clarification provided for ‘substantially financed’
Certain educational & medical institutions registered under S. 10(23) (under sub-clauses iiiab & iiiad) are exempt from tax if ‘substantially financed by the Govt.’ Currently substantial has not been defined in the Act and courts interpret this based on other provisions in the Act. Govt will now specify exact % of total receipts (including donations, etc., if any), which will entitle the concerned institution to claim exemption from its entire income.
Claim both for Depreciation as well as cost of asset not to be allowed
A Trust which has included acquisition cost of an asset in the application amount, canot again claim depreciation.
Claims under multiple sections not allowed
If a charitable Trust has been registered / approved under. 12AA / S. 10(23), it cannot claim benefit under any other clause of S. 10, except for agriculture income.
Additional powers given to Commissioner for cancellation of S. 12AA registration
Commissioner given additional power to cancel S.12AA registration under following circumstances:
1. If income/property of Trust, applied for the benefits of specified persons, like trustee
2.If funds are invested in prohibited modes.
3.It is found that charitable trust is generally not applying the income of Trust for public in general.
Relief in case of delayed S.12AA registration
In case of delayed registration under S. 12, any pending assessment on the date of registration would be considered for providing benefit under S. 12A, but not the assessments which are already complete.
Anonymous Donations
Tax calculation method on anonymous donations modified to streamline the same.
__________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in;
website: http://www.srr-foundation.org
Click here for NGO services.
ReplyDeleteYou have good articles here! If anyone here is looking for a loan @ 2% rate in return to buy a home or other financing needs, I want you to contact Mr Pedro On pedroloanss@gmail.com When I was introduced to Mr. Pedro at the market watch seminar, I was entering the market as a first time buyer. Naturally,my needs were a bit different and I had loads of questions. Before he sent me my pre-approval letter, he called to speak with me about what it meant and what could change. He made himself available to me at pretty much any hour via email and texts. He was very responsive and knowledgeable. He’s also very straightforward. I explained to him what my expectations were in terms of closing time and other particulars. He said he would meet those expectations but he surpassed them. I closed so quickly my realtor and the seller of course were excited about that. But as a buyer I appreciated being walked through the process of Mr Pedro loan offer. From pre-approval to closing- the journey was so seamless and I consider myself lucky because I’ve heard horror stories. I recommend him to anyone looking for a loan. Everything was handled electronically expediently and securely
ReplyDeleteNeed your CSR registration to be done in Delhi? NGO experts are one of the top-rated CSR consultants in Delhi with Team of trained experts that have a lot of experience in tax and legal services. Contact us for CSR registration in Delhi . Contact Us: 8929218091
ReplyDelete