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Anonymous Donations & Tax on Anonymous Donation - Section 13(7) & 115BBC - Income Tax - Ready Reckoner - Income TaxExtract Anonymous Donations Tax on Anonymous Donation - Section 13(7) 115BBC Anonymous Donation means any voluntary contribution where a person receiving such contribution and does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed. Where the total income of a trust, includes any income by way of any anonymous donation, the income-tax payable shall be:- (i) the amount of income tax calculated at the rate of 30% on the anonymous donations received in excess of the higher of the following amounts, namely: A. 5% of the total donations received by the assessee or B. 1,00,000 and (ii) the amount of income tax with which the assessee would have been chargeable had his total income been reduced by amount referred to in (i) above on which 30% tax has been computed. Anonymous Donations are not taxable under section 115BBC if: (i) such donations are received by any trust/ institutions established wholly for religious purposes . Therefore in case of a trust owning a temple, the offerings/ donations made by the devotees etc. shall not be taxable under this section even if the names/ addresses of donors are not there. Such donations shall be subjected to provisions of section 11 12 . (ii) such donations are received by any trust/ institutions established wholly for religious and charitable purposes. However such donations shall be taxable under section 115BBC if the anonymous donation is made with specific direction that such donation is for any university/ school/ educational institutional/ hospital/ medical institution run by such trust. Anonymous donations received by a trust wholly for charitable purposes are taxable under section 115BBC. Anonymous donations which are not taxable under section 115BBC shall be taxable under the normal provisions and shall be subjected to section 11 and 12 . Anonymous donations which are taxable under section 115BBC shall not be entitled to exemption under section 11 and 12 as per provisions of section 13(7) .
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