MY FRIEND WANTS TO START A TRUST WHICH RENDERS HEALTH SERVICES BY CONDUCTING HEALTH CAMPS FOR THE POOR. ANDHRA BANK GIVES A FUND OF RS 5000000 TO THIS TRUST. MY QUERY IS TO KNOW WHETHER SHE COULD GET EXEMPTION FOR THAT FUND OF RS 5000000 OR NOT? IF YES PLZ TEL ME THE PROCEDURE.
2 Replies
Vignesh Killur
(Articled Assistant)
(1671 Points)
Replied 06 February 2012
Hi Mr Ravali,
Whether this Rs. 50,00,000 from Andhra Bank is towards Donation to the Corpus or is it a Loan which is repayable by the Trust? In case it is a Donation, then please apply for Section 12A Registration to the Commissioner of Income Tax (Exemptions) and obtain the 12A Registration Certificate, This can be done as soon as the Trust itself is Registered. Then you can also apply for 80G Exemption Certificate. In 12A Registration the Income of the Trust is exempt subject to some conditions. But in 80G Registration tax benifit is available to Donors
Please follow below link:
https://ngofactory.com/index.php?option=com_content&view=article&id=16:income-tax-exemption-under-section-12-a-and-80-g-of-income-tax-act-1961
Regards
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