Payment of cash beyond Rs. 20,000
This query is : Resolved
15 July 2009
An NGO is not liable to Income Tax provided it complies under the terms of section 11, 12, 12A, 12AA and 13.
However, is it anyway oblized to follow the intent of section 40A and Rule 6DD.
However, is it anyway oblized to follow the intent of section 40A and Rule 6DD.
15 July 2009
Yes, it is required to follow the above section and
rules.
rules.
15 July 2009
Yes, it is required to follow the above section and
rules.
rules.
15 July 2009
Hi,
Even if sec. 40A apply to NGO , there will be no tax implications. because even after adding such expenses the net income will be exempt from tax.
Even if sec. 40A apply to NGO , there will be no tax implications. because even after adding such expenses the net income will be exempt from tax.
15 July 2009
Some people believe that NGOs are automatically exempt from income-tax. This is not
true. You need to apply for income tax exemption. After that you need to follow certain
conditions in order to remain exempt. Additionally, there are other requirements which
affect an NGO’s working.
Broadly there are three types of registration. Basic registration means that the NGO will
not have to pay income tax2 on its surplus3. This is the most important registration and
every NGO should have it.
Next comes registration for TDS4. NGOs have to deduct income tax when they make
payments to some people. After deducting tax, this is deposited with the Government.
Third is the approval for donors. These approvals mean that your donors will have to pay
less income tax whenever they donate money to you.
true. You need to apply for income tax exemption. After that you need to follow certain
conditions in order to remain exempt. Additionally, there are other requirements which
affect an NGO’s working.
Broadly there are three types of registration. Basic registration means that the NGO will
not have to pay income tax2 on its surplus3. This is the most important registration and
every NGO should have it.
Next comes registration for TDS4. NGOs have to deduct income tax when they make
payments to some people. After deducting tax, this is deposited with the Government.
Third is the approval for donors. These approvals mean that your donors will have to pay
less income tax whenever they donate money to you.
15 July 2009
Under Income Tax Act4, loans of Rs.20,000 or more have to be taken or repaid by
crossed account payee cheque or draft. Applies for NGOs also.
crossed account payee cheque or draft. Applies for NGOs also.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
