Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: empanelment :: VAT Audit :: TDS :: cpt :: ACCOUNTING STANDARDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…

Donations may be taxable under new code
August, 18th 2009

The new tax code that India wants to move, removes an exemption currently given to donations made to religious institutions, but experts are divided on its impact.

Some say this could discourage giving, thereby affecting the philanthropic work being done by religious institutions. Others say it wont because the people and organizations that give do so not to claim tax benefits, but because they want to give.

The current law, under section 80G of the income-tax Act only disallows exemption for a donation made to a religious institution for the benefit of a particular community, according to Vikas Vasal, executive director at audit and consulting firm KPMG India Pvt. Ltd.

The new code, he added, states that any amount paid for any religious activity will not qualify for a deduction. This can impact the donations to all institutions.

The new draft tax code was released last week. The government hopes to incorporate suggestions from companies, individuals, and tax experts before codifying it.

A spokesperson for the Central Board of Direct Taxes declined comment on the issue.

Amitabh Singh, partner at audit and consulting firm Ernst and Young Pvt. Ltd said the move would only result in a small drop in donations. Generally, donations in India to religious institutions are faith-driven and not tax-driven.

The main opposition party, the Bharatiya Janata Party said it wants exemptions on donations to religious institutions to continue. We support legitimate concessions, and tax concessions to encourage such habits are important. A structured response on the new direct tax code will be made in the coming days, but our party is in support of continuance of tax concessions for charities and other similar religious activities, said the partys spokesperson Prakash Javadekar.

Taxing trusts and NGOs

The new draft code also suggests taxing trusts engaged in commercial activities and non- governmental organizations (NGOs). Currently, both are exempt from tax.

The move will likely affect the functioning of NGOs. It could also crimp the activities of trusts that actually turn a profit from providing healthcare or educational services. The new tax code will see the beginning of an era of taxing non-profits, said KPMGs Vasal.

Under the proposed code, the tax liability of a non-profit organization will be 15% of the amount of surplus it generates from permitted welfare activities or capital gains arising from a transfer of an asset.

The surplus will be the gross receipts less expenditure of the organization.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

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