Section 115bbc

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kanaklata chauhan

kanaklata chauhan (Querist)
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10 December 2012 if trust receive cash donation (anonymous donation)whether taxable or not ?

@VaibhavJ

@VaibhavJ (Expert)
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10 December 2012 Hi

Yes, S/115BBC applies to Trust also.

Thanks//Vaibhav
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kanaklata chauhan

kanaklata chauhan (Querist)
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10 December 2012 if taxable than at what rate donation is taxable n upto what limit cash donation is benefited?

@VaibhavJ

@VaibhavJ (Expert)
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10 December 2012 Hi,

First you have to calculate Tax on anonymous donation as follow:

at the rate of thirty per cent on the aggregate of anonymous donations received in excess of the higher of the following, namely:—
(A) five per cent of the total donations received by the assessee; or
(B) one lakh rupees,

And on above add the amount of income-tax with which the assessee would have been chargeable had his total income reduced by the aggregate of anonymous donations received.

Thanks//Vaibhav
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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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05 January 2013 Dear Author,

Agreed With Above Reply.

Further Adding, Don't Write "Cash Donation(Anonymous Donation) as Same".
They are Different.

The Provision Written by Vaibhav Applies Only for Anonymous Donation.

if Trust Receive Donation in Cash and Would Able to Provide Name of Donor Along With PAN (If Donation Amount Exceed 20000 PA) Then They are to be Treated as Normal and 30% Slab is Not Applicable.

Regards,

PARAS CHHAJED

PARAS CHHAJED (Expert)
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10 March 2021 A trust registered u/s 12AA and 80G received various donations (Voluntary Contributions) in cash ranging from Rs.11 to Rs,7101 totalling to Rs.3,40,487 during FY 2017-18. Apart from this the trust also received donations through cheque amounting to Rs.12,15,740. Receipts for each donation was issued to the donor mentioning name and address of donors.
While making assessment for AY 2018-19 the said sum of Rs.3,40,487 has been charged to tax u/s 68 as unexplained cash credit, although complete list of all donations was submitted during course of assessment.
Consequent to addition u/s 68 section 115BBE was also invoked to charge income tax @ 60% plus surcharge and cess.
Kindly advise.

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