Business by NGO/NPO


This query is : Resolved 

(Querist)
17 October 2008 Dear Sirs,

Ours is a registered Society in Andhra Pradesh.

Our Activities:
Providing free medical treatment and free shelter to the disabled animals like dogs, cats, cattle, donkeys, horses and wildlife.

Position:
To secure income to feed our animals (around 200 cattle rescued from illegal transportation), we are producing organic vegetables, spirulina and milk products (from few milking cattle) and selling them through our shop.
We are planning to produce food grains from our own land.

Query:

1. If we continue our business, Is it effect our 12A
2. Since we are proding free medical care to the animals, can we treated as Medical relief society, which can continue their business to raise their own income for sustainability

17 October 2008 From the information you have given you are producing your own agricultural products and selling them, to costitute income from agriculture. If this is so, your income is exempt.

drk reddy (Querist)
18 October 2008 Dear Sir,

Thank you for your reply. Regarding Income Tax amendment 2008 on continuing business by NGO/NPO:
Our organisation already has 12A exemption.

- Can we continue with our agriculatural produce and sale without loosing our 12A exemption???

- As our animal welfare hospitals provide free treatments for small and large animals, we need to know, if we are considered a part of "Medical care" as mentioned in the amendment???

18 October 2008 Only business is prohibited not agricultural activities.


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