Taxmann's Trusts & NGOs Ready Reckoner by Taxmann

About the Authors

.n r’ sy e a. rt i be s tsse i ms r u e es eav Hi s mMi n .y waUs t O i lP osa l d i l l l b kNa e o f ht t a Urn o o u smf ol o sa sc o l dc rr a ef sH. aA i .Ddd . ea nn h hi a d P a ,n t s n a e I of y c dt i s n o e i l s t a i se e b t n f l n r a p o t e a rt mn v pn o yuouG boco, c o ecscA c l A t a R a l cAsa C odai F vehc, r o de eS R tH Ar S na.nC o y ahh , n h sCp i o c f o i r ao t sa l a o e g e x l oti s a u e h Ft T i P R jt n o s n l o a nni r aIeo t r er et Mh e cp g .te ox r fdD Do e

1. Dr. Manoj Fogla

: e d u l c n i h c i h w s l a n o i s s e f o r p r o f s k o o b g n i l l e s t s e b l a r e v e s f o r o h t u a e h t s i e H

r ea t u w t i s t e s n na I rb e u i h v aB X, y gt ns i i r d e uv l i c n nU i s r ne oi i . vr t u aa t Xw i t s ,e s n)n B i l Ma a b Iu r e vXh ( er B s a , fw y o t i dss rer n a e oav bn i Bu eh U hB t f,M o tB rnS e e bmA med egn aa mn , ) aa B sMU i efX Ho ( u

‘Comprehensive Commentaries on Taxation of Trusts & NGOs by Taxmann’. u

‘Handbook on CSR for Corporates & NPOs’.

‘Commentaries on FCRA and Lokpal’.

‘Legal and Financial Handbook for Voluntary Organisations’.

fr o o sf t A n aR t C n uF on co cs AQ dA eF r e d t r n a a hs CO fP o eN t r u o t f i t T s nS I eG hn t o rs oQ f sA nF os i t a a ch i c l b u us ph i dl ee t D f a w r de oN. s s , l a a O i d P en HI N

l a n o i t a n s u o i r a v t a n o s r e p e c r u o s e r d n a y t l u c a f ss . a gm nu i r s o s f e l r a dn do ai t na en er be t sn a i hd en Ha

m o c . l i a m g @ a l g o f m r o m o c . o o h a y @ a l g o f m t a d e t c a t n o c e b n a c e H

d, s t nn aa t tn n au t o n uc oc cA cd e Ar e dt er r a e h t r C a , . ho CC g n& i l c a i t w c i r aj r e PK al a sw i r la a wg iA r . j s e / KM rf a o mr ue n Kt r ha sp e . r r a uet d a Sn k l .u r o oK Mf

2. CA. Suresh Kumar Kejriwal

eh r s oe d ma l fg o n ea cB n, ea i i r d e n pI xe ed eu dl i c wn i ss a a he r ea hg dn i nk ar ro ow t c l a en s o Os i Gs e Nf o nr i p gs ni i h k rd on wa s yr l a n e i . yl a a m1p 3e sn i aN eh & Ht

I-5

S R O H T U A E H T T U O B A

I-6

sr e o vf i t a a i d r e n pI of o o Ct s n ra ot f n eu eo t t c i c mA md oe cr e er t ha t h fC o f ro e be t mu ei t ms t n dI ee t p h ot f o co s4 . er ho 1 t t3 nc1 ee0 eS2 bOr sPa a e hNy de en h Ha t

”fdi . s o nl h O a t e Gf sD a e Nr vw i &dt e e a sh N r t t s e , ugpa i rn o d Ti n froI a o pCf r ne o os or f i p t t en a xnet a t aii tn Tdm e u “v o kl mc oo ovoc bnCA eied hshr e n t t o e y fs t o br r se a dh r opeC h hes t hl f io u t Afbe t eouu p t eTt a i nS i t c s oo n G ss inI s e Ae h o eHst h.Os , t n Pr fn o o aNt e rc oe nmf x S oa s sT i QO eyAP Hb FN se ur c ou i r o as ve r ya bs a di a ed zn i n I af go rs t on . sar t r n o au t no c i e cS mc eA O s /dG se N pr oee hth srt kag rhn oCi wfn o r ee yt c nun t at i o ms c ns I c de i eh p t to a dt t i ne l i a h c st an f n oo si atn o hus t i t r es e np Hi m o c . k o o l t u o @ l a w i r j e k l a w r a g a t a d e t c a t n o c e b n a c e H

-x i a h t l e e Dm . to s a gcO nnG I i c gN i n t d i c l n ad a r ns pa p yh l u t nt n i r ee a r ct r ns ue f ci ro se i n opo hxi t wea e tv x n a it as t ne n eh ut oxt cen csi e n As o dst i eea s r s s e i o t l r p a a i ec hH e C. p wbs oaa j l n l h e ui t FP adw sn s i r nat e uRt rC a a TNm

3. CA. Tarun Kumar

x Area e h t -s t t ra he e t m nMi o‘wo ke c chdn eteI Roks r u ytoo ddwr i e at a eu y v l Rb e is n st r oo On l c n Go sn Nca a dohm s nl ex aaH a s T sa .f t ’ s n o uho rei t THt n ie ‘ .dm ’ ds e el t l 2 a t r 2a i n0 t o p 2e i ks os , D t oe c bf y Ar o ar o xs dPt ai r-v eo r ofed hemA. t dods u c i e au nnu GIas s o c ohi e c sctr d i a e a e t e d hc t i a s au l er e e HP GRr d e r o h t u a o s l a s a h . da nd i ae sm r e c t i t n a o mr t c xe al t e e d mn oa ct nn I i r np on i rd e ke ah s ei pl sb eu vp i s t g c o al nb as u so i i r ea Hv m o c . l i a m g @ 2 9 r a m u k n u r a t a c t a d e t c a t n o c e b n a c e H

Contents PAGE

About the Authors

I-5

CHAPTER 1 u

Introduction and Legal Framework of NPOs in India

CHAPTER 2 u

Meaning of Charitable Purpose

CHAPTER 3 u

Religious & Partly Religious Trust

CHAPTER 4 u

Amendment of trust deed

CHAPTER 5 u

New scheme of registration under section 12AB

CHAPTER 6 u

Registration under section 12AB of the Organisation Formed without an Instrument

CHAPTER 7

Practical Guide to Registration under section 12AB

I-7

S T N E T N O C

I-8 PAGE

CHAPTER 8

Conditions for Claiming Exemption under sections 11 and 12

122

CHAPTER 9

Scope of Income under section 11

135

CHAPTER 10

Application of Income

162

CHAPTER 11

Scheme of Taxation & Computation of Income

186

CHAPTER 12

Corpus Donation

199

CHAPTER 13

Inter-charity Donations

213

CHAPTER 14

Project Grants whether Income

221

CHAPTER 15

Implications of section 2(24)(xviii) on Grant and Corpus Donation

235

CHAPTER 16

Treatment of Capital Gains

245

CHAPTER 17

Depreciation

262

CHAPTER 18

Business activity under section 2(15)

269

CHAPTER 19

Incidental Business and Business held as Trust Property

296

S T N E T N O C

I-9

PAGE CHAPTER 20

Options available for accumulation of Income

308

CHAPTER 21

Set-off & carry forward of past deficit

342

CHAPTER 22

Anonymous Donations

350

CHAPTER 23

Penal Taxation of NGOs

365

CHAPTER 24

Cancellation of Registration

382

CHAPTER 25

Tax on Accreted Income of NGOs

412

CHAPTER 26

Taxation when Registration Status is Lost

422

CHAPTER 27

Approval under section 80G

428

CHAPTER 28

Practical Guide to Approval under section 80G

446

CHAPTER 29

Tax Implications of CSR Expenditure

472

CHAPTER 30

International Activities of NGOs outside India

513

CHAPTER 31

Requirement of Audit under section 12A

520

S T N E T N O C

I-10 PAGE

CHAPTER 32

Practical Guide to upload Audit Report in Form 10B

532

CHAPTER 33

Submission of Income Tax Return (ITR)

544

CHAPTER 34

Practical Guide to file Form ITR-7

566

CHAPTER 35

Forfeiture of various incomes under section 13

588

CHAPTER 36

Forfeiture - Charitable activity for a particular community

597

CHAPTER 37

Forfeiture - Benefit to Interested Persons

605

CHAPTER 38

Forfeiture - Violation Regarding Investment under section 13(1)(d)

624

CHAPTER 39

Forfeiture - Investment in section 8 Company and Incubatee Companies 633 CHAPTER 40

Fundamental Concepts under section 10(23C)

640

CHAPTER 41

Government Funded and Upto ` 5 crore Annual Receipt Institutions

653

CHAPTER 42

Exemption and Conditions for approval under section 10(23C)

660

S T N E T N O C

I-11

PAGE CHAPTER 43

Approval and Cancellation under section 10(23C)

689

CHAPTER 44

Tabular Overview of Compliances under section 10(23C)

716

CHAPTER 45

Comparative Analysis of exemption under sections 11 and 10(23C)

723

CHAPTER 46

Practical Guide to Approval under section 10(23C)

733

CHAPTER 47

Mutual Societies

749

CHAPTER 48

Maintenance of books of account

769

APPENDICES

Appendix 1: Relevant Provisions of Income-tax Act, 1961

783

Appendix 2: Relevant Rules of Income-tax Rules, 1962

878

Appendix 3: Relevant Forms of Income-tax Rules, 1962

894

CHAPTER

hid i re c d i a n m h h o i wca c . l et yrc c o t hA e f r t e b d oe p en h t ol i a tt r c pc f p eo pd j ta 3 s b n u1 uta n ru sd t d en e r a mon a m i o 1B r am 1A f r ee 2 eh n1 t o, mte i t A ond c e2 cee h n 1 s i Tb , r2 d e.l e t nu d1 u , oo n1 i pt u1 m h ps es o ms l n b e es o cx at i o o l i c tep a rr ve so u as df sn eep ni el s. u od nb n e i eioo t g fi i ni i p i g t l i mc oe p l e , e ep m e y r xs l b/ e l es a x lee l i l en i t a b hi o n s ha Tt a Ist ) ) ( ( : n o i t a c i l p p a o t t c e j b u s e m o c n I ) (

. lo a i N c r . r e i mC m[ oe cm o ac nn i i df eo t u n po i mt oa ct ] eu8 bp6 m lo l 9 a 1 hc, sle a ym n t u r rJ e poh ont rr9 pe 1 tpd s e ust raa t td mo) on6 rdf nX ea X meL os ( cnP e5 ns I . b

]o ) t t c (e 0 j 1b du ns ae )m o c (n 0 I 1f ,o ) t r (a 0 1p nm or i t o c f el s l a nh as ht t u rb e hd t e o d [ u el mc ox. cen e nb o i i t tta p oc i mnl lp el p xi EwA . c

t es mi n oa cg na i e ng ra r a eh c o[ t e dm eo r c r n ui ce nh i t sg e n s i nt eu pp xm eo rc ol e i sh e s w nd ee pt xc eu d ge nd i s e] i a be r dm dlo nuc o uh n Fs i . d

s ea mh ot ce ns i s ta s ne i h a t gf ai ) e6 g1 r a 5 h1 c0 s2 a r da ee r Y e t dn i s . nen omo cst i s a ee c bs s i l tA p o p n(a 5 l1 l s i 0a w2 n/d 4e o0 i m t /a i a 1l i c e0c . r f n . pe e e. e Dwb .

f o t r a p m r o f l l a h s n o i t a n o d s u. on o mi t ya nc ol i np Ap fa o o t nt oc i e t j r b ou ps te p mm o ec xn Ei .

: n o i t a c i l p p A ) (

. e odnn1 b eai nr o2 0 s t l r su l i . a 2 a i s ) , 2 cdot h( en pc s e r 1 i oA r e )1 g e r s hn e u s dpc t ii / sn pu nesi ebnha rn hsoTn oo c c e i t . i s F st ed ,n i c d b e n i rr aelah a p p l t t ox ey a s l we r e h or ffs sb t o o i t o rnnn nt a ta t u oae ac o e l m h oy e t fl j deohd r b n c ehti e eu t r h s nnhm t r uiew n o cemna (o nmyie ni t h i a r a o o c ecpat i e y t e i r nr l yb a i a p n f sed o p e sos he a e tat s m ds u n c no r ya i t en h n fi i d po cof re a a xi i r u t et he g s a a d n ci ecnci r s hi le lii e t p p n t b t pups o nc fa bai I I

d e r e d i s n o c e r a e r u t a n n i l a t i p a c & e u n e v e r h t o bn -o i nt oa i c t i a l cp i p l p a ps Aa

186

a iii

Scheme of Taxation & Computation of Income 11.1 CHAPTER AT A GLANCE

23C

eeoe hltlm b b t n u a a l l hi o c i i r ca a t i i v v p c h a a e we e c h e x be rt s t i e r do we nnnrd a e ul dsh n a t su u o e e cod l nweeb t r a2c a a t 1 a l s i ha nc de mn iv ua nha c1 ewe r 1 e i c sb sbt t n s fi eo hi aeo t thnn l sc ei l 3 e e 1bw s fir . e 3 i c enh,1 2 o ed t i 1n pn t , y su c o di t ebn t n e S c c ae o. r Ai e n s t h1n ep o 1 t hm i i t t s d eadn fx n s e ot o eiai a 3 n tt f a 1 c 1o g1 es s nsr se t n o o fi rc i e enod i t t n a n c c a nt eeoe Sbt sus )

(

ndr oeo i fis t i t c c s ee u Sp r t ose t nh )i 1 t 1eo ( mt d d o nc e an i n )ie 0 ed 1t ( s sui npn omo i oi t t c c e p o s m t e b umx si se f dn o ea t t h fi r ce e en s nme i 2 b 2en 0he t 2r h ,o w t c fs Aee edc cin nvt a o ar s np m i F ou etc r h3i T1 c ) (

dftde eoa b e h r r nt t e e o o t t d i s n s e t i i a g dg l l ci ei ei r lvrw o sp t prAn s o uapAi r 02t n 2 t 1 u ra0n t 2 e i d t ,i os he t t c tn r o Aci e od eed t i cse t s nav. n n ayoe ao r r n m ci bp g o seF pc ubenan e p hi v)i rtTg f oo. o Cn] n 9 l l n ( o 1i Aa 0 o -h t1 i 8 t ns 1a a n n o 0 c A i o o 2d i t i l A. a t p Y n2. scp e o1A u a s dnf po .r n yi oe . ota t i t. cns r c a eweoa [ i hs h e t d cr t u e m t e t r ni o a e d t e c t s e nn vn n r ui ei t I . b

eeg hci n t nd an fi o l o p p %ms 0o e 3c r -r yn o bo c . dneh efhs cota uefc dsin euti n a r ue co d ee bbma ram lo l a l s f li hd u se 0 f0 i e0 l np h0 , op t i t a 1 y a tb cn i f l r u p oo pos s amn s e fai oc o g x s nv i e ti n d n oi un rt oo pn mpSe sD ae m r Ty er ho a fp Tc o .

s dn n eo o l i li t fi t a l c c u i e l fs p ef p bo a os t d n e do ei m r s i e i u v e q o d. e r rd r p e os ee f i r h nc at r )f oe 1 i x t ( o p e A y oe 2 t ,b 1l i % i 5n nb o 8a i a tc fc c i o l ep s s r ta p r na oe i hy dr se eo d f sv i l fi e l v a l r ob f r o p i nf g i on sl i ae t o se a i t nb ca i o l l i p u o. t i t p 2 am dr1 e lu nd d o c a n t c cr o a e oa t hn1 fr T o I i1 ) ) ( (

viii

E C N A L G A T A R E T P A H C

: s e c n a w o l l a s i D ) (

efsg boai n ewn t lv l i imu wt c uo nesc c opha s i t cf e a r uo ci r sd i l yo p t s ah pu pt ar etoe hytm t ye bt tdl h it a iio ha b t at p i syl g e n e l i da l hd i t v r ouho t rc cct . pa i c h ai 2’ sw y tb 2t s 0i ud nr 2ni e erty ,h t aho c ecl Awy up eyssm y clu nnobe aoi y l ndvdr e e i er r a F l r p w u ug e o e ce l hl hn Ta t ir f.

tr i o c fif e el db i ts s s a i pm fr o e fp f e o b t e t s o en hl l t i tw a he t m so e c dn i . v in oso r’ i pra t a 1ec 2yl i 0tp 2n p ,ea t r c r % Au 5 ec8 ceg nh n at i t ntu i s F np eim a hg o Ta c e.

sr nesk uodi ha c e t p t a reid db . s e m e t olo n fi de w o cbp a i e r o c t fi e t l m i o defl r s s t a p tars o ue s u h e p p ocosr be v n ldi nrdeol e d c oot o as ir s i f h h t t o e mc si a t cnv uthi n o i r sni cs l i i t u o p r soo p pai ohe actsf wd i m m i l y tp n a l nrl a i h p o a e r ha h c t a hfcc u es fiu snwei yf e da,hcs o t s , r e i r ut se p f v a o oavose n i rdeedy v e w pe t e r sex o n 1r o ure i 2eHma ope e d. i 0i t v hh 2s srn et t i e ,n oa r t s no oo c pi m t e Acp ens rn)h ou eeu o 5 tip cb ( p 1 ftr o nt a 1o t co ao sn i nn c u n e l i oio pe m , F i p lik h t a g o el c c t i a c l hh aen no e Ts bSi at r d.

Para 11.1 187

23C

vii

E M O C N I F O N O I T A T U P M O C & N O I T A X A T F O E M E H C S

l i a t e d n i d e s s u c s i d s i e u s s i s i h T . 2 1 . dn no at i 1a 1x sa nT oa l i t n c e eP s rn e do r ne ut sp na oh i C t u e t i h t t s ni n i n o c e h t o. t t tc c A ee j b h ut sf eo r 3 a 1 1d 1n na oB i t A c e2 s 1 , rA e d2 n1 , u2 e1 l , b 1 a1 l i s a n vo ai t sc ne os i t n p i md e ei xf i ec ee hp Ts s n o i t i d

d n a , t i f e n. e er bu ct i a l b n un pi e el hb t a ri t or f a gh nc i t r s o i x s eu yo l i e g l i o l e sr er be th s t i ue me nb on i t a a c s i n n o at i ga r s oi n ea hg Tr o h c u s

t nn c b oa eut i j f s b co ee ues sb( lbm l ya o u t hsc r n sfi e p)o o1 e r6)h p9(t e t1dt , s nu uta c p rA t )m x(o ma ,c t) ore o f (t ,s em) mo d ( c e on se cI e n nes I u e h an et l . o hfc n t o ,o n y t3i i l t a lp a h6di t oei tm t dn s0 e i e ix v d6o ,e i sreo v c t onpn rose t c pi taHe c 1e j n.b 1s o 1u i 1s nft oopnn i nm o o t c oeit i t i es xc a Si s veei oosn rtfa o t pc g )r oj 1 e( o t

.t et o hs Tun r s .t i ’ . . t ri . . e . . dt . . nu ub s de . l s t e s o hp u r yrt t u r pe e h pst ouh o ri t pg i w ei l s hey d trl l r oro o toh tew w o l e nbe a h d b t t ni r d h a a l t t u i h c w e co h s jrs b o n o f i y g t y e r e h l l e b t o p ) o ho t wr ( s ) p 1 ee r ( bh e 1 f d 1 e t l t n ru a o oh i h t t s c y e t r s S a u s rs dt e rec oh e wTn

.se ” . u c . . . n o . i e g r i e l e f f r i cd i l o b un ps i s e d dr r ne o ah w et t a d e v e h i t rn r s p e e s ct . u ans n ou ) e cr ( e t ) wss 1 ( tiu 1 1 e o 1 b 1 i g n nl i o ho s e i i i t tr u c e e gct s nea t isv t s a s i a h i r d t p r d ta d e of n t n a s o n sac i e e,l e o b b d r u o y f p a ne o r a m i e t n t c he I et e s , t w ss i t ue h rb Tt

o it r a e hl cb a ] rl ) oi a f ( ) yv( 1 a l l o1 o s 1 hl n wao si ri t onc f oe i dt S [ ep i . l me p pem axo c ten s n i i eh t e th x edt enf hao t a% oi5 d t 1 n tI p o t mnp i esu xe d es e ot ep a br l luu l pm a hsu su c eoc i a mi g ol e cem nro I r oc n ei l e b h at t

netn o ohpi i Tmt t a p . e s c xi me e l ess p xoi p eps a et ers u hp n oe t nepc l r eb ur ha e t tpp i , e r 2 l 5 6ab 8 9ha 1ct f i o rr 4 o a n 1 sho ouct i t ori i rg od oi sn i lu o r e pr oc i drg e eoi m l f t e a a yr el s r t r r oe c a f h sp dt a si ed wi ln ntp oi a p f i i a) t n a t) ( e s i 1 vn( e n t 1 aex 1 gee l r b en. oa hol y el i i t t ha p c oe t vt p fa sa I eerd bme l o du lc l i no nu wi w

sl yd nl n oa e i ct t i a h f i s c i c i n eh ap w gs r s. se oi d snse uoot i p s ot i re au g r s i e i l pt e n n di r raes g i or f i i eot a l eod i b ahnn t t rI i s o r s f h a e si c hl kh cnr fuo o , w eywn l mnri e ooor caaa niil f d d i nI ne ) I w ( nel )i 1 da ( din 1 s et 1l o i ut i np oa op i k n a t rr c eo e eb t wn s rt ooi e t e ddd t nee o rtm Ui uto qir emp r r e o sp t i

11.2-8

188 Para 11.2

11.2 OVERVIEW OF THE CONDITIONS AND SCHEME OF TAXATION -

11.2-1

11.2-2

11.2-3

11.2-4 a ‘income derived from property held under trust wholly for charitable or religious purposes ‘wholly’

11.2-5 a “income derived from property held under trust wholly for charitable or religious purposes.

11.2-6

11.2-7

r eno aer i d o d f a i i s t f nt y l p I e t u i eowmv e i delx t i aec s mn t a u oi th oe oct c nagu ei nl ys myr l n e d op t oe cpn i li nai f l i i ew t nt o ya l cosn p p2mnr a5ooo i r t 9p d a n1 e s o a4 t i t t cn i 21dam 5rngr 9eere t o t p 1f h e a . sa cs 4 i a r e i 1 ohh hd n enwT I T r os.D e od e d s f Bi d e e eot Cs btps t a e rr eu deu h o erpet c t t s n fe ei a sl i en s b r s1o oa c i p ti1r t a i sa nu r i nsa d o i p on hni i cItl e c t a a eb grhs s r o c i a Ofi n ri t h a e a.i r wd go a d s r nh l nnu Oa I i c

N O I T A X A T F O E M E H C S D N A S N O I T I D N O C F O W E I V R E V O

setr. eee ub b hpos bl d t msu lo i , l la p r s emr a t hhmuxro n e h oc ossrT sf csno. a h ui oss ec yp udhu t r m ra a pets r t o t f ra r cnoo n o o ufofce f d r e e l t o r o shhe y o c t vtu l l r pfubma fa o s t r c o po i erorf i mmcronoc f o l ee rrem l yi h l oo p wns f ft l tra od la el n c o n i ha o i f e hei i t ht n n t d c i nsso eat ea i s yenpi t in ee d s n s i i a hv oi mt ddg pa oeer ot em n t r ca piiod) s nh a nr( i 5 ot 1p nao )t2 1 n 0eiy 1 a (o d d ) 2 b i e m n 1 t r , t ds ( t c o o)e 1 c i e e 5 t 1i d v r A ( vc i e1 n e e nd et 1c i s occs n i e e s n n i t vorii f a c i i t n n ec n t d i i i c s o e e s f i e i s rpFi t f S s i e e a e y c l d hl nnn e naTniou p o h d d s Ut . t t e i ses i p p wm f ume i mc p d o n e e r e co ox on xp i m ees ci t e nns i o o i nt p oc r i eu t s a cdp i c l ni p f i pac ) fan e o n o p )i i s 2 t l l i ( r a d o ef nf s to ur e aocm l h oo C st ,e c tn % hc 5t i ef 8y j b o. fl p o u ts r n npsa o oa(p t i i o p t t t yd i i a cnenn c i a o l ef i o p t r c pp fon aoo n i neroa i i ha t t l t r l ea a e r l yu f c oe t f r o oshmt hetut d c n si c i ce ev j horab t roru r o rp s f a e ) e v1 s, s ye o( r c1tda o1nie v y Tneo u o r e i qp t v e c i ) f es2 b s ( r 1 u1 o os f t

ds eu t o c i v ee j b r up sn ei bd e ln l a o ht i sn ee mm os ca nn i , o ) i 3 t ( a 1 l 1u nm ou i t c c c ea s r do n an o )i t Bp . h 1o t ( ri 1 1ow f d ns e on i i l op t i c t ed i m s o nc ro e t dco nen Uhe t fr i a xa ar t a op t

r ie l p d pn au fd o e sv e o cr np ap wa o . n l l B o a i A s t i 2 u d t 1 i rt / os A f nA si2 e y dn1 i an v o ooi rt t pt c )ne 1 as ( r r 1 e 1gd nsn ouu p i rd t c o e ec r s e g t on s t ig i d re a r gr eo r ) tC n 3 u2 o( 0 m1 an no ot i i t c a e cs

, re . oyn t n dom eaoeto s e n r u e ce c dmp x n o emi erte yf cfn sao nee al npn d b e i t o i wt pa s i t e oc x h a l r e u t l c a ;i dane l s e i p dp doao d t r seo a ri me f d ox f at h e a n l t m st eb e g fsm i I d. n i si i s y s t t i v otnamu rnepr p pemI fem my )y .po 1 ad c m ( ap e ie 1 l 1pdwyi h o nh nl ns a l w oaaa i r cds t d i o e c e e&tdhr s sces e u nd bad oo i lcs t l i e i s nn dw i i o v ottec ronde pnuab s omt Si o Dtm n i s Ttai l l fuh0i b 0 o c w 0 u, ts nn e 0 oe s f1n i t o m a e l % p y g o a0n x i p3i v e

,i 2s ya t 2ecrr e s a 0ds an t urn 2l wi ,c e u t dr o c n dlr . Ainou tn o enuvgsi co a,ut i d r e s u nt t ea u t aui i t f t nt nqhs i i t i oscn s u o F i not si n m ei u e y hrei ,b h t octe t t l ytasp dr l n bsp e o i m u t dr t rrea s eteot eu t ahthrr r t t s r e o ucet e s e ndrrubh t s i ,t noh fn )u hco f 1 oo c ( i u d r t 1 r si l s p 1e u u yao p hb nhc p et sr ot y,d r i o t a r e ric t c r vo a eea i p e , So h weny t ordcoaf i p t ret euramo v , t hgmo e r t ,unc a ee se a p u r l yr e p qn g hs r n woaori e , f ) hm tmb r a ,(nto o ) o he i l 2 t rf t p ( s sm Guoa e b h de0i cn 8 i r t r o t v nn i ut oyo ohu rni pat cct

)de )sd5 i1 r h et (ue( t a o h1ii1wo s 1 1 g o cn o t i l l l pna ro e k o ei oi r c f dt tr ea rcbb nco e e os eosld i l l d t e a nb nh a ei t i ciat s o s t i dso l i t e r p etp pdavi fn e n e h u i ar i d c c o tr em . st a rep r e i oa f he n sate f t i s s sren hhm e e s o m c c t d dao i i s u t i os h e s a v v oucnm,wn n rpi o s i prf drunr )oosopio r c r 1 uso a ( t enp m e 1 i o s 1hirrcyo t t o o h a s n c p cf cu omi e h u e i o ol d t i rpchsv c h efputre s a c s f or Se u snofp s oo s e a eyef t l pdhrl h o rewoa t t ut , c m n n a r i pe i f e e t srvri x uteocne e o i oewep t i b e onsah g t c i Hodl l t i o e oep .t ns o r n t p i n rlei l s as a oa t o, u hp es knnp l r iar c b )u aaso a( d pbma c t

ee mb l ol ca nh i s fr o a ne oy i s t a u l o u i cv l e a r cp te a h ht t sg e n dr i i v ou rd pd e )t 1 a ( l 1 1u nm ou i c t c c ea s r oo t d e i l p p a e b o t d e r i u q e r

11.2.16 Explanation 5

11.2-15 Explanation 4

11.2-12 Explanation 2

Explanation

11.2-10

11.2-9

Para 11.2 189

11.2-11

11.2-13 Explanation 3

11.2-14 Explanation 3A

f dsxo u a np t ar n e o eom i l c t . b t aeope c m h t s i nes t r I f a a exl e hoh a cnt r t o , i oe ri p f ot g a f e asc e l t dp d r n i eea e v i dvo l h p t podro atapn t s ) a eniA g bud1n s o ( i i omh 1 r t t1i u dae q n l el oc imi r wot i a u cr c tr eo qi ,eSf ee r rv.d ooo)e sfoAs 1 t l e i ( a l r1 r i e e t eh d1u r r t ne a oo r ia sdnt nnI ce a i . es a n s ge e osh t s i lo t h t a a g p t f s i ui ri p n aunoi a r p Cs a gb g ursl ooaa e i h t g i h t i p t l c a fA e o c r

ef do un l o c i np t i . l s l mn a o hei sxi t ”ed t sn s ueo rdc i t v ro d e e drf i npi ) c uA e d4 p l (s e h1n 1 yn o t s r o e e i i pt t i ocv ret i psc “ d t na a s has t de l se n e i s dhu i ob v osl r a pgt n )i n 4 k e ( a d 1 t i 1r c en nd i on i t um c o esr Ss f e ne i m s uo bc n ai e r e h w s e d o m e h t r o f s e d i v o r p C 7 1 e l u R. e hd t i wa rm e e hb t e n ga oc t t )s 5 u ( 1 r 1t na oy i b t c t en Se m t s e v n i

t ns on i i t a a i g. c ar s en r a poe eiy t da r e tci i a l l p r hp a t sae e on dti i t n v c o oe i rj t pba uc ts i c l p Aep xma aos Tca n eid e mgt n oi a t cu e r np t I n eme hoe t c fl eb o e iv )ha 6 wh ( 1 dh 1e c nwi ooh i l w t l a c s e t See b s ts o a ne ls l a o hh st

tc o e ns ld l a hn sa 0) 1 ( n0 o1 i t , ) c e s r( e 0 d1 nn uo i nt oc i e t s p n mi eo xt ed te a r hr t e f se e dr i e v om ro pc n )i 7 ( t 1 p 1e c nx oe i t e c el. Sb) a l ( i 0 a v1 an o ei bt

,me. l1 a av t 1 sc s o u i onr aA n l arofc x gpier t a p v r c t i eoae t de nesa m r n v n e aa uo i p thto c dn a ynneI hl e i v t s e m oe ud so h brt e p l denl pf a e i n o v ha) ams ot n a e rl pu Be myAbe B ri 2 s e . 1su hs) /aa t t o r Ahl ( un0 Anc fn o r )a12ie 1 t 7 s c u d s ( / t 1 / n Bu i t 1A u dusd n n n2e oie o1i f i r i i i t nt t f oi a c oo t t r ei o s n t t s s n c u ri r oeo g s t s t i ee r r)rh oe e o sd i ht0 v on(th1 ru0tcn i a pd1h h o eentwi t o r d he c i t ene Tt i o c s s f i e i ef g r s t o er a a l r e d) c nds e ih ont i uit t

entsl y i a doy r i i wa t v l oab u m c ri du g pl i e a sr opp p t h g 1ayc n l 1nl ut i sn naa osuyu i t a ta c o p c c eda c o Sei st a r oe y f t t dml i o i uid s nsbo a ohl i h cc t e e euh m bst hhe lc l ch a ii t dhhh eswwo t t t r s ng n e ui i s n rr ri nt i aad 2yeer 2nyyo 0a sc 2 suc ,yuoa t b o i c t i v s Aeve l u e rr eb r pt cap e ny h e hc aah t . npt t i fui F mnosy eui eyb hs evbd i Ty t de m c y n o eeo r acp r l nsu p ti e a cm r fr ho ne t ii

y nyhr.s 1 u l o u t bt ol 1p i i o i t dt t r no hws c es vnewduoc i r s i i et t e t c s f v s cno ee i d ue eas hs r rc r syetetfa nbsrrfow o oroenost p o d s i e t ou rn s su e i u o t e u p s bs p u po rr i o dbo r h t ut peli n rhercpn t h t e our n hea yo cpo t t hh ysf r c ftt r ,e u , l o r r a l pr oa oe t tf er ov i n h hr g ui lspeaet. l e s wpmoe o m e s vrs omon m o yro c H r o r o nt nopf i oi .f c aer s d l u n u l tb n eel bi i a api vsa i s ht r h ohdt a i r p t srcersend a d u d e u yu oe h s dc el cm eph i rm s cye v r t o oo f ou nre i t a rf o a c d y t e py l hb nit n g l )l e l i i o ur 1 l ee oh ( ntla 2 b r ooon n v 1hw i r o t o l , nwdt o l c s i a ode t d e e i c e he hde r l tt i sm b srr c i ad oi eal Sebetcnwd r i o i e a r r c i f c t d t a e i i ts c u f h h s e e i t e t c un b i c pt o ro e , r s s t 1 p oa ns nI i1 at f i

se nb ot i t o c n el s l a fh o s y2 t i 1 l i d b an ca i l 1 p p1 as n ro ot i f c se ns ot i a th i d t ns oe cd i sv e o dr i p v on ro pt i )c 1 e ( s Ab 2u 1s ns i oh i t T c e. 2 S1 d n a 1 1

11.2-25

E M O C N I F O N O I T A T U P M O C & N O I T A X A T F O E M E H C S

i l p p a s s e c x e y n a f o . r ea ce ny as wu oo l i l v a e rr op ne oh i t t c g un i dd ee dc e rr op fr f o a e ty e s e yh nt af to u y on ha t f i wo n eo di t aa mc 1

11.2-24

Explanation

11.2-23

23C

(46

(23C

11.2-22

23C

11.2-21

190 Para 11.2

11.2-17

11.2-18

11.2-19

11.2-20

N O I T P M E X E M I A L C O T S N O I T I D N O C

e A c b 2o n 1, a nBn oAe i t 2 t n c 1i e/ a s Am fA o , 2 n )1 r 1 ( u nt oe ni ot r i cf t eo c esn r s e o b i ds un s su i nnm i b ou di et s a i , f r t i t r c s o ei p pge ser r se t nd i ou d i u t l i c A d . nnfc oiot cs e n g , eont i i ht n h i t s u d sn i o s n c e orc l Cua n u.ff d d o een l l s l ak b i af go l cu no i i lfn b p ei pr f ao aa t

t i f e n. ed be t en ha t r rg os f i sn e o di i t v a ot r rs pi g Ae 2r 1e nh ot i e t c c en s o fs o r a )e 2 ( y ne r oi i l t r c a ee s r b o uf sn oe t v oe sn i v o i ot ra Pt r s i g e r f o e h t s a l l e w s a n o i t a r t . s n i g o i et r a ft r o s i sg s e e cr of ro pn o ei ht t a l se l e c dn i v a oc rf po Bs s Ae 2c 1o nr op i d t c n ea Sn o i t a u t i s

e.,l l hnei r o t ow i t f ha 2 e cs 1 r i ie h n wahd n t gd a rr . e don13 nna11 , s n ua1 n o1 o st ot i e i ent c cl oce nb i es al at s t n ic i s e r mased v d uaon e t cetu a r n t b i o s c t e i l s eot b p e hne ac t dc l i n l su a x a e vt i oea f s i n w c em e2ai u ssc p1a wr sd i tn drc c e e he Aat h e1ctt h1aor n s e t ner e fo d o inan t e 3c ehu c 1e i e nsbh l s r oe wb a i a td hsi l c t en3f i a Su1e v snna t i e oeb f i e tbt nc eo eeh bSt n 2sr 2ee 0cd 2nn a u ,t t s c s A n m o eui cc t nr u t aii ncs t i dn F ei i ef r hi c o t e yp s bs t s d u eer h t t t r e e nh s nit i eo )m 1 t 1od ( ce 3 ni 1i n nfe oo d i t s n c eoi i s n t o da i ntt aup p )m m 0 e 1ox ( ce. 3 1ef2 nho1 ottd i in rf t a c oe ef n1 Sse 1 e bn dno i i v t oec rhe pws

.oe1 . t ) sno no Ptr1 oi tn Aeen i w e ( p t u i o r 4 n 3 m d i a t 7 e 1 ne, c 5v oxd d e en cee Rr s ,w T a r ee f e I o r ho Ad l 5oA t l f t n 7 o oe r 2u t rf 1a1 ] e e n th b 9p,o c i eTo 8eAt 2 9 j h .t 1 1p b t t d [ , uce m / n2 sAr e 1 o1x i.9 eeu se r v h r t q 2eng a o n f p e i n a 1or ot i 13e rc l m i e a n1rnxps v odaiasf t s a i n Tao t aau1ws e c o , r eAs 4tno s of And i ] e 8 r2ot tie s i e 8 a i t 1i b n v 9 d, h i d e o 1toe nAn [ rs p 2o u1 d ps l s e2 e ,ca e es l hh s b w 1u s a, tta o t r l 1 e i i a e 1r u uh a h s ot vsas t C anvi yy o f f s si e i b i i nt r h e h d ocl e t e T i b e ,vl s t i . e ao p ni l sdp i md at anm vd cao ee ae sec xi r ef tr i i e h uy ecoh t l su e n hp d nn sa Ts Ied i

f eo r a s hn o ci i s h i wv o )r 1 p ( Ae 2h 1t nf oo i y t t c i l ei s b a nc i i l dp ep da i v or ro pf e sl a b i sg nl i oe i t e i d b no ot cr ee hd t r2 : eo1 r nd a i g n nda e i l 1 l wf i 1 ol s l u l fn o o f et i ebc hoe Tt s

n o i t c e s r e d n u d e r e t s i g e r n e e bt . ec vA ax a ht de l m u o oc hn sI ne h ot i t f a so i B n aA g2 r1 o/ A eA h2 T1 ) (

f, n o o si nt . n oao r i t t i s t a a cir g fie t i r s d i g ofe mor s nnh s eoe kir t i ad f t r r no e dof ncn ueo i rht ota c doi l etp t m p p r oo a df n ana o sc e a htk noa onm i oo t u dt t i d h t e cr s i nh i i u rwq o e tsr t s c s ue i rj t t bi eon he e t ht h ft I ) (

h c u s n i s. t d n e eb i mr c us ce or dp re e hb t y o a dm ns aa t, n e uc oa cl cp ah c fu o ss kt oa od bn a nr i a e t n n n i a a mm dd nn aa pm er eo Kf ) (

. e) 1 n( o9 d3 e1 hn so i i n t rc ue fs dr ne ad dn eu nn i r a u t t b e or ee bh ot t g n si dl e fi ef no y ) e l i t 0 r 2 oa0 d t 2 a det , nuc adA oe mt c trn r oa oi pr n i epF r the r t i n d t f uoa Am( ) (

Hyderabad Secunderabad CIT

Foodgrains Association Ltd.

Para 11.3 191

11.2-26

11.2-27

11.2-28

11.2-29

11.3 CONDITIONS TO CLAIM EXEMPTION

iii

E M O C N I F O N O I T A T U P M O C & N O I T A X A T F O E M E H C S

n ri oh ct ci aw ,] . n9 i r3) 1 a en( yo A 2 si 1 ut c oe n i s o v i eft r o c p)e s eA h4r t ( e r p n oo s f a t[ di ecn e hs o si i t bc n rue uss fft eoa b h s nt oo r t ie ss a id hvn nou rrd upe e t e hw r t o l xhl at a i t we e m mei oct n e ca h nd t I ) (

. h/n eo cl i i bt h ap wt im r ya e t r x he e pcs ora rod pfe t m d s e ul i i rp a t l pc mae otb rn n f ua eo c mmd o n caa nnd i e e hn et t i u pdm n r ma e t o e cnd o dt i e l p b u omd l heu sx o te s h urs o rf s t e s a o e ,lp b p i r eg u t ip s l tes s eu r b i o f i l g al i a l sh e As r l ta s um rr t o mn or re f ep s ma ot co nn i ed hn t ,a 8 e 6s 9n 1e ,s 9 l 1a ei nc ur Je dm em t o a dc n ,i ) 6 d Xe Xt u. Lp ( e P mm 5 oo .cc o n e i Nb f rl o a l l a n u h o cs i t r i a yt C t u r re p e ppm o sr o Ap c e b t o n l l i w . ]n ) o i t (a 0 c 1i l dp np aa )o t t c (e 0 j 1b ,u ) s (e 0 1m o nc on i i t c f eo s t nr aa hp t m rr e o hf t l o l [ a eh ms ot cu nb i d te p d ml u ec xx Ee e b d l u o. he sm o ec mi n ot cs nn i i a ng ra a ee g or t a dh ec r a r us ca ne i m so e c s nn ei pe xh et g rn oi t su e p s nm eo pc xe el i gh nw i s d i a e r t c du nd ue Fd

. -n 4 o 1 i t .a f . c e i l . p wp ea ms oa cd ne i m ta i s l nc i a n ge ae eb gs r a a h ht ce s ss a a de h et r e f i d) i 6 s 1 no5 c1 e0 b2 r ta o e ny lt l i n we m ns os i e t s a i s c a e( r 5 p1 e0 D2 t c e j b u s e m o c n i f o t r a p m r o f l l a h s n o i t a n o d s u o m y n o n a f o n . on i t o r i oa t pc tl i p p mp ea xo Et

e d u l c n i l l a h s e s o p r u p s u o i g i l e r / e l b a t i r a h c r o f n o i t a c i l p p a f o t n u o m a e h T

r mo if a l d c e s ou t s ei l b t i i s d s i e mi d rv e o pr sp i n to I i :t a c i l p p a f o . es r e us t o a p nr lu a p t i s p au o ci g &i l e er u/ ne el vb ea r t i r ha t o h bc

ngs na ei he d t e ,br n se ae d ss i on l fen o po xc te e u ofb l l doa r ea h r esd . r uyni cea a nh op i l t e f r eno r i s a i t n n see m e a s o o ml nc yh en ac pi pi xfe eo rh etsw hue n t os i ar fnc I a o e h i t cy a u e cs i h l t n p i pt n i au n obo n i d t se a i r c r eu i l r p e cp hn t ia u

Revenue & capital nature of application

Repayment of Loan:

s n wuei oomn rio o g c r i i t n . ol d beiai c r e a i d h l p p nrt e ao pr semas nlo i abrni f a a t oi t ds, l i r t maaan e ohpdt rceex r f swe nri o o e l ofgl h i na t n t i a eo ow ci bt i t o l ld a rl p r c a pi n o l h ap a bs np d rti aa on a tnne p a haame o t yr sl s sa a hp i e ce t ddu i i rh es v r oe nhc rd eci pi huh 1s sw 2nw,n 0o,ri r a 2ce er ,evy a t bese c Atwuy s eooou cnHio v nl,e i s l aa r v e pe nh s i r o s e F php esr t e g hn ufh Ti po t

dfn eoi o r st e e c ds e i os s np orf cuo ep) e ( bh tt d o n r no a lf l ) a s( he ss s soe p g s ru nu i a wpl o c rsd u r on oi a bg l) di ne ar sr( no0 ae1 oln b l ao t mi i t rc oa rh e f S nc orf i oo t f a o cni s i o l v i p t o pa r ac iP ,l e pd r r pi oa f h e nT r ae e hsh Ta t

23C

192 Para 11.4

11.4 COMPUTATION OF INCOME AVAILABLE FOR APPLICATION

11.4-1 Computation of Income available for application/exemption

11.4-2 Application of Income

N O I T A C I L P P A R O F E L B A L I A V A E M O C N I F O N O I T A T U P M O C

ss ’ u r o a i ev ye sr up oe i h v et r n pi . ent hon i t e t a mc m oi y l rp a f p p da e i r a nh pa c es r u sas i d f ge o nw t i n oe wl ol t rax r e e ob e bl h rl t a oh o t ns atd on i l a nep eme hyr a s wp i ,e t r ri e h vhc eci uh ws w o, He n .mi ) r 1 oa ( ce 1 ny 1i

,rsgefr nr ao o e a o r n e l ni s a i sn vi ov ot t o e m a n c pao dc ir ed hij iws yl e t po uttbh i u s r pHnpu bot a a.odr h h 1 e iet r d s h 6 ca e fit t t i e n 9 i s rd1 w t c e o e a e ue nc t , r r t epo hl n a t e I dcrsdyei r A a r i l a m s oet b i h nxnf a s oao tnr e t u i i y ct o b l s l eea to t e n bmnndvd a a looc nri sn l d c a i naotm hnyo i t dn sIi tis ee o der tut a r nha c hd i uthntr t o ff ort ,s n socdos l e oa u1rynr i ont p et e r1ti r onnrduaa coiae nn sithheoo t a d s dc hcta i y f ret r t c t o s a e a i d t r s na wfe sI n i t oor i n c h t , e u e s ca e nss j t cb . rgn c aon r hpenoeeoo t e j r t n i et rueHebi o h e a pb.t ses he s rani o t o t r a n ht c o nda e l t i e e p nr s j g er mi i vh oo b si i to a sg fi t to e ddweees v h ene i e t aitma t a o h l t evgcr n e e ns i ts r mh t i yot ia u f l n g l cnpo i a n. ne mnmo e mi rfkoodlm i c o a a o o t t so ea nns l c ceen i eo h i a h mi r l t ih t a wp l o g sat pl cn d a c e a n i i nn es s l ,i et r np r epmcaefa patusvoe x rdeeno eraeswot i eopdnot f e e vs a deeHc l i p b t b a ia x.l a d x e es la r pt l l t u e pu t e s o i ab w osp e n e h i i hs st hrsr ma stuat t , e des gpda e s s e Am y nnu wl s i t oaetooc a p i l ccx l e g e nne a i r r l i t i i e e ef d fa r b v t o o t i r t &do ge d l a n ncr u a eo i te l e ns n b t r rii s aha n s , a t s s eeini i r r m e e ea od hf s s t n eamhne o c e r o t be pp a rx co x ht hn ot t ifee

e y2dest t l 5nsi p o e 9 e m p1 hr t m ao n4hTer a-c.pp d i c1h eyo r l t l 2e ws t a 5t e c d f s 9a r fin e 1r e i s e t c 4 oon et i p 1 n sph. c s eori u i d r aThe odpi t D e w f ed s t e l B e s n a b be r e aICs e dr h s t t on i ecr csp t s e i i a nahlrs eo h n u i r icwupa c t i sarnned nsoiohn f i i e t on t I r s a i p ai t a e h a f gd m fii c l s r ne i et i OI h n wxo .el ao e nw gs datr r n i e l n s goi Oa t o e ti ar aui o t i o a a d ndf nl lnl ner I iIe emewew dot dl n s c i i s a snint t e i o n u u t i o oyotot i l a epmska i r n mpon o a r o ra e w p n g ca t r oo on nc t t i i

Administrative expenses:

Activity outside India:

Specific disallowances of application amount:

rne ee dnl b eob o h i i r t t t a t e o c a t o t i en cr s i i yr l a l i g l n d epha a . p c r t hs c t a a o fi su s ,r us tit rayAcst t db eur re Apro n 2 s t e r n o1at hei o n t t n du d he o i o i t s bt i i e p on i i w h t c or c t t tc e ,e n n s r A ro o aec rAff r b e 2oe g soyd1sm utnnnuo p ptauor c ro, i n onedtoi e c c c ln r Cl ef f e s -aet o o s r nhHi t n e os g r . o d i ] A9 en a i t t r a A a 1t upc n2mi s o18 d l ue rp d 1r op yn0trf o 2 e t i st la it .u sl r s c a Y i a og . eA ha i hs e s g d cr .irte l f e r tia t e . t s e r de . a t u e nw rr ht n r u[ ot t I ) (

Inter charity donation other than towards corpus: u

Para 11.4 193

E M O C N I F O N O I T A T U P M O C & N O I T A X A T F O E M E H C S

ernen do si o o adiut t a c mnul e t c i s nut b ofs f y i n u o t i n s) a l . a ni naa e ooniv m o (o dti ot ec sAt uAadsn p2ceui r uraf r l o1de c o cnef o n rebo yi nterut i achnsa e o t r tso i c oi t a rru l he oi t)p t dy t(p sn ts a e duinen s s i i ua drl v s oeeaaa v l c r re i c i n pt d d s ebe u oi t mua sg y s l en a rre r r 0 aeot 2nrh e 0oot)b i o : 2 ( t n r u e , t oo ti t s i o c t u t l n u As a al t t l l i eni c t a p cis sb h nrn o s iou) at rhsC ns i uoyr3 F rtno2 s et a )( ur hyr 0 Tbt o(1

f sno uo pi n rto c oe i t cs a ,oc 0 i l 2tp 0np 2o a i ,t t n u c a t At i s esa cnd nie t ada e nr e i e r F t t s yi e g be b t tro n eAn l mAl d2i n1w enn o oi mi t t ac u ei t ss i t h s an t i fyd o be wnv o er ev i v ip g p nna i . o)e ,i e ct m na(o n c eo 0n Hd 1i sl y xdi eemn r o e od ud t ise 1s 1nhw c ou o nc l oe l s a i t h b c e c l el b i Sah l h l wa os t h tns s i ur e ra t m yeo nyc asn yui bof i evo e l n nb r o aapt i dyea a h c ep i t t l r p m n e i p s ue a ns i 2yme 2noh. t 0ac, s 2tns i i a u s ,h fh a t to c b T e Ad n.t n od ei cviie t a noa pm r c ap y i ya ny l l i lplp F a p t i ua at ec inc hl n Tp aao Application on Payment Basis:

Corpus Donations u

yf ao pd oo t h t ye t i m l i b e ah i l t eo ht t g hn ci i d h r wo c nc i a rt a s eu yr st uh . oc d i v ue esy r o pyl ebp hdm t e e fry r o l u r ec a vn l i iu t c g ese par swg e n r mi r t i un ssu i ho sc i c h c ua Ts n myi unn sao i ygt n ni a ar c ui l ed p r p e hta s wun r a tt a s ha hc t ud ss e e d w y i bo v l odl re a pi le rp b e pt ha t o r n n ue . l fe l r a a bh e esy v s amu huo sv i oh t e r dcp u eest hmr n ,e t ia a u ol eq t c ye o s snsb e i v euu o obi s r v y s pa en r Ahp a

sl y dnt eei e i hfi t l t p o n p,ti d f ae n e e t ta d c n n lr uu i ocee mlpm a 5 ac8 o c edtn hnsi a a t es dl t de ti ns a f i ar so i nan % omo 5 i t 1 i mt a e cuat i c si l a ll p sp i ps u pm ae a s oo lu t a c tptc o r c a t eur p j n ea b s hc uu t so e n i h eg o i i w ml . t n e a or d o s c/ e i i t i ne n i f i li ad ebrgn haero v t o t i c r e e ea y bh ch n o nc T a t Oss .t d e u d re mo a h eot wn ci otn t iiw

s he h a cm t uo eo mysc n ongi n cai e n y o h i l t t p se h t pc i u ai fdf h o row to n nn edo i e cv i r t a ri p e e e coy pe ee 5r hh 8t t o t tn r e s o] s . a i t r1 ) c eu a r l ( e1 e tbx a d y1 yeegn l unno i p d i prae t c c c ac ee cs oanc o t s i uo eit e a st l s b y i amn l e noa t ucg a n i r sio d i e e nhem ott h i e m t r a ni e s e e h i [ h. ht n t aw, d ne gdn r i v oii oa see s a ee c eme hrr o o t cr rn f fa s e I ii

s nedesn ebl eo htumsi o o o t o t pa cr enhe n mdsb uo olelpd r cuml nooioy c t i cwfi shnedr t a e ] cims i i 2 h d fh ( c1 o eoutwtcer 1 n a b n e l i n t eeu t e n o o cm h i i n t romt , u c r c e d e e pnchl h c u S 5ici t [ 8fahor o . h h ue ws tnc s Fm t a ougi .o eiSn ,d t l d c i en tr.l e t i o e a t i a a s a l ypofl d u e l , u e p hps t ma r m ptra ul ague uc u npy c oi cm t td ca eae5as u r l l sac ti a u b x c l amc eewa nu e n mtf d uc i o eoh sc c hcc t i i t niu f nai i ho r n c oo eiewe i h h t f l p t t a rb ts i eo s i p i s oawcfs n a ndnno o O ap gl e soi .h r le t oadp lto enepbrn i e a a hal p e h x t c pea r t fi ta bto a I

Explanation 2

Explanation

194 Para 11.4

23C

Explanation

11.4-3

N O I T A X A T F O E M E H C S G N I W O H S T R A H C W O L F

195

Para 11.5

t r a h c w o l f e h t 1 1 n o i t c e s r e d n u n o i t a x a T f o : r ee md en hu ce s r ne oh yd t e i d ri a v l c o r rp e t n a e ee r g b rs oa Fh

11.5 FLOW CHART SHOWING SCHEME OF TAXATION

Income from Voluntary Contribution and income from trust property

Business Income

Capital Gain subject to section 11(1A)

INCOME

Less: Charges against Income

Income available for application u/s. 11(1)

Less: All applications out of current year’s income duly considering disallowances

Surplus – Stage 1

Less: Statutory Accumulation @ 15% of Income available for application u/s 11(1)

Surplus – Stage 2

1. Set apart vide Explanation 2 to Section 11(1) – This year (Option) 2. Set apart u/s. 11(2) – This year (Accumulation)

Surplus – Stage 3

Add: (1) Unutilized part of funds set apart u/s. 11(1B) (2) Unutilized part of funds set apart u/s. 11(3) [Set apart u/s. 11(2)] (3) Anonymous Donation (in excess of exemption limit) (4) Income applied outside India [(in contravention of section 11(1)(c)]

Total Income - TAXABLE

Trusts & NGOs Ready Reckoner AUTHOR

: : PUBLISHER DATE OF PUBLICATION : : EDITION ISBN NO : NO. OF PAGES : : BINDING TYPE

MANOJ FOGLA, SURESH KUMAR KEJRIWAL, TARUN KUMAR TAXMANN APRIL 2022 3RD EDITION 9789393880888 978 PAPERBACK

Rs. : 1995 | USD : 64

Description This book explains the tax implications during the life cycle of a charitable trust, starting from incorporation, registration, maintenance of books of account, scheme of taxation, computation of income, filing of the income-tax return, audit report, cancellation of registration, forfeiture of exemption, etc. It contains an extensive discussion on the provisions of the Income-tax Act, tutorials and guides on the filing of various forms under the Act. The Present Publication is the 3 rd Edition, authored by Dr Manoj Fogla, CA Suresh Kumar Kejriwal & CA Tarun Kumar. This book is amended by the Finance Act 2022 with the following noteworthy features: u

[Analysis & Impact of Amendments] by the Finance Act 2022

[Exhaustive Coverage of the Registration & Approval Process] under the following Sections: n

Section 12AB

Section 10(23C)

Section 80G

[Explanation to the Scheme of Taxation & Computation of Income] of NGOs

[Practical Guide to File Registration Application] in Form No. 10A and Form No. 10AB

[Guide to Filing of Statements of Donations] in Form No. 10BD

[Flowcharts & Illustrations] explaining the law relating to the taxation of NGOs

[Landmark Rulings] on all controversial issues

[Tabular Overview of Compliances] has been provided in this book

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