Section 8 company - what is considered as income

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Jay F (Querist)
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05 March 2019 A section 8 company in India gets donations and funds to carry out its NPO/NGO activity. Donations and grants it received, are taxable income?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 March 2019 Yes it's taxable income in case the company is not registered under section 12a of income tax Act.

Jay F

Jay F (Querist)
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06 March 2019 Thanks for your response Mr. Seetharaman. Yes, the NGO is registered under 12A.
Is there any cutoff limit on the collected donation / membership?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 March 2019 85% of such donation received has to be spent for claiming 100% exemption. Unspent amount may be deposited in banks and applied to AO may be carried forward for 5 years.

Jay F

Jay F (Querist)
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09 March 2019 Thanks sir. Your information is very helpful.

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