Deduction with respect to eligible projects or scheme (Sec 35AC)
Deduction is available under section 35AC @ 100% of the amount contributed from the taxable income of the assessee under the head profits and gains from business or profession for promoting social and economic welfare or upliftment of the public.
Any taxpayer being a Company or a person other than a Company can claim deduction under Section 35AC.
The claim for deduction should be supported by an audit certificate obtained from the approved NGO to whom the payment is made in Form No.58A.
Eligible projects means such project or scheme for promoting the social and economic welfare of, or the upliftment of, the public as the Central Government may, by notification in the Official Gazette, specify in this behalf on the recommendations of the National Committee.
If the NGO is recognized under Section 35(1)(iii), i.e. NGO engaged in scientific research, research in social sciences and statistical research, the donor gets 125% deduction of the sum donated for donations made from ones business or professional income.
No monetary ceiling with respect to the GTI is applicable for donations made under Section 35AC One can donate up to 100% of ones income under this section.
Deduction in respect of certain donations for scientific research or rural development under sec 80GGA
An assessee (other than an assessee whose Gross Total Income includes income chargeable under the head " Profits and gains of business or profession ") is entitled to deduction in the computation of his total income with respect to payments/donations made to an NGO for carrying out scientific research, research in social sciences, statistical research and programme of rural development including training of persons for implementing programme of rural development.
No monetary ceiling with respect to the GTI is applicable for donations made under Section 80GGA.One can donate up to 100% of ones income under this section.
SECTION 80g ( AN ADDITIONAL VIEW)
This section applies to donations to any institution or fund established n India for a charitable purpose and if it fulfills the following conditions: -
1. The institution or fund maintains separate books of account in respect of such business;
The donations made to the institution or fund are not used by it, directly and indirectly, for the purposes of such business; and The institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purpose of such business;
2. The instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;
3. The institution or the fund is not expressed to be for the benefit of any particular religious community or caste;
4. The institution or fund maintains regular accounts of its receipts and expenditure;
5. The institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956.
The previous notes are only for knowledge and information. Before making or receiving donation, the donor and the NGO is advised to consult their chartered accountant or seek professional advice.
Deduction is available under section 35AC @ 100% of the amount contributed from the taxable income of the assessee under the head profits and gains from business or profession for promoting social and economic welfare or upliftment of the public.
Any taxpayer being a Company or a person other than a Company can claim deduction under Section 35AC.
The claim for deduction should be supported by an audit certificate obtained from the approved NGO to whom the payment is made in Form No.58A.
Eligible projects means such project or scheme for promoting the social and economic welfare of, or the upliftment of, the public as the Central Government may, by notification in the Official Gazette, specify in this behalf on the recommendations of the National Committee.
If the NGO is recognized under Section 35(1)(iii), i.e. NGO engaged in scientific research, research in social sciences and statistical research, the donor gets 125% deduction of the sum donated for donations made from ones business or professional income.
No monetary ceiling with respect to the GTI is applicable for donations made under Section 35AC One can donate up to 100% of ones income under this section.
Deduction in respect of certain donations for scientific research or rural development under sec 80GGA
An assessee (other than an assessee whose Gross Total Income includes income chargeable under the head " Profits and gains of business or profession ") is entitled to deduction in the computation of his total income with respect to payments/donations made to an NGO for carrying out scientific research, research in social sciences, statistical research and programme of rural development including training of persons for implementing programme of rural development.
No monetary ceiling with respect to the GTI is applicable for donations made under Section 80GGA.One can donate up to 100% of ones income under this section.
SECTION 80g ( AN ADDITIONAL VIEW)
This section applies to donations to any institution or fund established n India for a charitable purpose and if it fulfills the following conditions: -
1. The institution or fund maintains separate books of account in respect of such business;
The donations made to the institution or fund are not used by it, directly and indirectly, for the purposes of such business; and The institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purpose of such business;
2. The instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;
3. The institution or the fund is not expressed to be for the benefit of any particular religious community or caste;
4. The institution or fund maintains regular accounts of its receipts and expenditure;
5. The institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956.
The previous notes are only for knowledge and information. Before making or receiving donation, the donor and the NGO is advised to consult their chartered accountant or seek professional advice.
Tax benefits, Tax exemption, Tax deduction, Donors, donations, NGO.
| AccountAid.net TM A best place for all NGOs like charitable trust, society, You can also download all type of income tax forms, FCRA forms, 12A, 80G, 35AC related forms. This is a knowledge base. Ngo shall use this. Click here to access this site. But you should be very sensitive in using each and every links of this site which have best informations. |
Click here
for all useful forms for charitable Trust, Society & know 12A, 80G, 35AC, FCRA.