A trust registered u/s 12 A will receive foreign funds as donations amounting to Rs 50 lakhs in the current financial year. The donations will be received in its SB account and will be treated as income and will be claimed expemtion U/s 10.
Just because a huge amount is to be received, l would like to know whether there are any other tax implications that will be applicable or will it be taxable?
07 July 2016
In order to receive contribution in any kind or currency from foreign sources NGO needs the approval from Indian government which is called prior permission or they have to register under FCRA (foreign contribution regulation act).
A separate record is also needed to be kept for utilisation of such funds.
CAclubindia
