Hello,
A Trust has received about Rs.400000 donations but the Trust does not obtain proper.. all records are in raw(kachha) format. In case of donations, all they have is a list of some 21 donators which only contains their name and address but not their PAN or any other details. Isn't there a limit some thing like 7500 or 10000 per donator for which if PAN is not quoted then it is fine?? How can this be shown since we're auditing their Trust??
First off all., such donation might be considered as Unknown Donation and will not be eligible for benefit of Sec 11 & 12 of the Income Tax Act........ (Not considerable in case of donation received exclusively for religious purpose)....
Further, Trust are prohibited to make donation of any type... the can use the fund either for the purpose for which they are created or for investment in specified securities etc....
Further,
however, you can make donation to another Trust... otherwise such donation will not be entitled to benifit of Sec 11 and will taxed....
Further, there is no restriction on donation out of accumulated 15% Fund (as done u/s 11(1))....
refer following link....
https://taxguru.in/income-tax-case-laws/donations-out-of-15-percent-accumulation-permitted-under-section-111a-are-not-to-be-restricted-by-explanation-to-section-112.html
| Originally posted by : Arvind | ||
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First off all., such donation might be considered as Unknown Donation and will not be eligible for benefit of Sec 11 & 12 of the Income Tax Act........ Further, Trust are prohibited to make donation of any type... the can use the fund either for the purpose for which they are created or for investment in specified securities etc.... My reply is mainly wrt Income Tax Act... I dont have any idea about other related Act.... |
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AGREED.
Hello,
Thanks for the reply.. My question was on receipt of donations by the Trust and not the Trust making Donations..
So does this mean that the donations which I mentioned which total about Rs.4 lac and are from 21 donators(I have the list of names and addresses but not their PAN or any other details). Will these donations be treated at par with anonymous donations and taxed at 30%???
I had mentioned about the same too..
You are having Name & Address and not PAN..
Although the same particulars are sufficient information (but next time must maintain PAN too), and should be eligible for Sec 11 Exemption...
Chirag N Shah & Associates
Mumbai
CA Inter
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