Section 8 company
This query is : Resolved
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?
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?
17 January 2021
1 No, entire 15 lacs received is taxable.
2 No.
3 No, maximum marginal rate of tax applicable.
2 No.
3 No, maximum marginal rate of tax applicable.
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