Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: cpt :: empanelment :: VAT Audit :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: due date for vat payment :: list of goods taxed at 4%
 
 
News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

Charitable bodies bank on scrapping of 30% tax
February, 03rd 2007

Charitable institutions are banking on the government to revoke the 30% tax on anonymous donations it introduced last year in the Budget, as no such tax exists for totally religious institutions.

In the 2006-07 budget, the government introduced a new sub-section, 155BBC, to tax anonymous donations at 30%.

Institutions classified as religious and charitable have been permitted to received anonymous donations without any limit for purposes other than educational and medical.

On the other hand, institutions classified as totally charitable cannot receive such donations, even for religious purposes, unless they are ready to pay income tax at 30%.

Some institutions here said this is grossly unfair and highly discriminative.

According to legal opinion sought by them, the proviso also contradicts section 80 (G) of the Income Tax Act, which allows even charitable institutions to spend up to 5% of their income on religious purposes. Such income obviously comes from religious sources.

According to the experts, behind every charitable initiative in India, there is a religious background or inspirations and most such charitable institutions have a shrine or prayer hall with a collection box.

Since last year, all such anonymous collections at charitable institutions are subject to 30% income tax and also subject to harassment by income-tax officials.

Sources in one charitable institution here said this 30% tax seems to be aimed at encouraging the circulation of black money, as people can now openly drop bundles of cash in the hundis of religious institutions without fear of enquiry.

They said the government seemed to have designed the new sub-section 115BBC to curb the receipt of anonymous donations by medical and education institutions.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions