Section 8 company - what is considered as income
This query is : Resolved
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
(Expert)
05 March 2019
Yes it's taxable income in case the company is not registered under section 12a of income tax Act.
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?
Is there any cutoff limit on the collected donation / membership?
CA R SEETHARAMAN
(Expert)
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.
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