Section 11 15% of gross receipts or after applicaton?

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CA Kunjan - www.canaresh.com (Querist)
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19 March 2022 section 11(1) states 15% of income. income means receipts or net after dedction of application of receipts?
i feel, income means after exps not after application.
for example which is correct ?
rs. 100 gross receipts,
rs. 15 exempted
rs. 85
less rs.60 spent
so rs. 25 is taxable
OR IS IT BELOW?:-
100 Rs. received, 60Rs. spent, so 40 and reduce 15% of 40 = 12- 28 is taxable?
IS 25 TAXABLEOR RS.28 TAXABLE ABOVE>?
I FEEL 25 IS TAXABLE.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 March 2022 40 is taxable. Only if you spend 85 it's fully exempt.

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CA Kunjan - www.canaresh.com

CA Kunjan - www.canaresh.com (Querist)
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24 March 2022 sir irrespective of amount spent, first we should get 15%, then out of blance 85 whatever is not spent, will be taxable, right?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 March 2022 No, if you spend 85% 15% is exempt.
If you don't spend any amount 100% taxable.

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CA Kunjan - www.canaresh.com

CA Kunjan - www.canaresh.com (Querist)
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30 March 2022 time limit to accumulate ---> if i dont spend 85% upto 31.3.2022 (for fy21-22), do i have to put in section 11(5) before 31.3.2022? i feel , we have time till return date to accumulate, not just till 31.3.2022. correct sir?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 March 2022 No, put in section 11(5) before 31.3.2022

CA Kunjan - www.canaresh.com

CA Kunjan - www.canaresh.com (Querist)
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30 March 2022 sir 2 CAs told me same what u said. but what if i get donation on last hour of 31.3.2022, how to invest in 11(5) before close of 31.3.2022. i think we get time after 31.3.32022 , but i still not sure.

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