Hi
Is it mandatory for a contributor to share their UIN (Unique Identification Number - PAN, AADHAAR etc.) while making a contribution to a NGO, as per Income Tax Department?
If yes, can someone share the notification of IT Department.
Regards
10 Replies
veerendar singh
(tax consultant)
(3306 Points)
Replied 28 May 2021
I think answer to this lies in section 115bbc
if you dont provide identification then it becomes anonymous donation, which is prejudicial to the ngo.
for this reason they insisit for identification
if you dont provide identification then it becomes anonymous donation, which is prejudicial to the ngo.
for this reason they insisit for identification
Sivaramaraju G
(Learner)
(2398 Points)
Replied 28 May 2021
I think If they want deduction u/s 80G they should provide those datails.
veerendar singh
(tax consultant)
(3306 Points)
Replied 28 May 2021
Yes that view is also valid.
cant clearly make out from whose view point is Vbhu asking i.e., from contributor's view point or ngo.
nevertheless from both angles, it is required to provide identification
cant clearly make out from whose view point is Vbhu asking i.e., from contributor's view point or ngo.
nevertheless from both angles, it is required to provide identification
Vbhu Malhotra
(43 Points)
Replied 28 May 2021
Yes contributor will have to provide if he wants deduction u/s. 80G. I am asking from the point of view of the NGO. Does IT dept. requires NGO to collect UIN from the contributor mandatorily? Is there a new notification in this regard?
Sivaramaraju G
(Learner)
(2398 Points)
Replied 28 May 2021
Anonymous donations are taxable for trust or institutions at the rate of 30%, However, from the assessment year 2010-11, anonymous donations are taxable only to the extent such donation exceeds Rs. 1,00,000 or 5% of total donations received by the trust, whichever is higher.
Anonymous donations itself saying that donor details are not available. that means donor donates amount with out disclosing his details. as said by VEER.
when act says about anonymous donations and it's taxability that means NGO can accept the same. that means there is no mandatory requirement on NGO to collect UIN.
This is my understanding.
veerendar singh
(tax consultant)
(3306 Points)
Replied 28 May 2021
As i said previously, 115bbc requires identification.
further the department is rolling out a new reporting mechanism wherein ngo have to report each contribution received. it will be similar to tds returns.
thereafter the contributors will have such contributions displayed on their 26AS.
for effective functioning of such mechanism it will be necessary to have identification of donors.
further the department is rolling out a new reporting mechanism wherein ngo have to report each contribution received. it will be similar to tds returns.
thereafter the contributors will have such contributions displayed on their 26AS.
for effective functioning of such mechanism it will be necessary to have identification of donors.
Sivaramaraju G
(Learner)
(2398 Points)
Replied 28 May 2021
Okay. thank you veer for your information.
Vbhu Malhotra
(43 Points)
Replied 28 May 2021
ThaNk you every one. Veer do you have this notification?
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