16 January 2021
A section 8 company was formed in FY 2019-20. Donations received ( Under CSR) from other entity Rs. 15 lakhs. Company Spent as per object clause Rs. 7 lakhs during FY 2019.20. Company had agreed (in FY 2019-20) to other charitable trust to give donation of Rs. 4 lakhs which was paid in FY 2020.21. The company is not registered u/s 12AA hence exemption u/s 11 is not available. ITR6 need to be filed. Query 1. - Can the company make provision for the said agreed donation of Rs. 4 lakhs. Query 2. - Whether the income to be shown as Income from Business or Profession? Query 3. - Can the company opt for 115BAA i.e. 22% tax?