NGO/section 8. company

84 views 1 replies
User Avatar

72 Points Joined April 2017
In case section 8 company incurred expenses before actual receipt of income, whether the same is counted as application of income? if yes then where to report under 10BB form under application of funds column
0 Reply Share Follow
On 02 September 2024 at 01:07 Report
Replies (1)
User Avatar

Master in Accounts & high court Advocate
8991 Points Joined December 2011

In the case of a Section 8 company, expenses incurred before actual receipt of income can be considered as application of income. As per the Income-tax Act, 1961, Section 8 companies are exempt from tax under Section 10(26), but they are required to file Form 10BB to report their income and expenses. To report expenses incurred before receipt of income in Form 10BB: 1. _Report under 'Application of Funds' column_: Show the expenses incurred as 'Application of Funds' in the relevant column of Form 10BB. 2. _Provide details in Schedule II_: Furnish detailed information about the expenses incurred in Schedule II of Form 10BB. 3. _Maintain proper documentation_: Keep supporting documents and records to justify the expenses incurred and the income received. 4. _Consult a tax professional_: If you're unsure about reporting or have complex situations, consult a tax professional or chartered accountant for guidance. Remember to accurately report expenses and income to ensure compliance with tax regulations and avoid any potential issues.

Reply
On 04 September 2024 at 14:19


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading