5 Points to re-check before claiming Tax Exemptions u/s 11, 12 and Sec 10(23C) by NGOs and Trusts 

Dear @SheelaKannadaJournal Ma`am, I am sooooo happy to meet and connect with an another RU-vidr, like you. It is indeed an honour. Coming to your specific question, I really need to go through that Trust Deed which you are referring to; to advise you further. In my view, any Trust Deed can be amended with times by the way of a Supplementary Trust Deed again entered and registered with same Office of Sub-Registrar where Original Trust Deed was registered. My Email Address is: OFFICE@SHARKAUDITORS.COM in case you would share your trust deed for my inputs.

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Dear Manisha, I am soooo happy to hear that. Please feel free to contact in case we may sit across and discuss your Subject/ Queries. Please drop us an email at OFFICE@SHARKAUDITORS.COM at relevant times.

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Your r great person sir...full of knowledge... I will be grateful to u if u could guide me...happy to have such wonderful person..at what time can i contact u sir??

Call us today at 9717 00 2510. CA Neha Seth will be happy to assist you. We must be at-least 20 NGOs Clients from Hyderabad.

Yes, may be EXEMPT; BUT subject to filing of Income Tax Return (ITR).

The Answer is Yes! Without your filing ITR, how the Govt would get to know that your NGO has done Rs. ZERO Activities OR Rs. Crores of activities? Best Regards SHARK AUDITORS +91 9717 00 2510 | 87006-04006

1. Yes, audit is mandatory. 2. 31/10/2023 3. Form-10BB

Section-10(23C)(iiiab) means a Univeristy/ Educational Institution solely for Education and substantially financed by the Govt. Yes, approval is very much required for claiming the income of such University/ Other Educational Institution EXEMPT from Tax.

@@TaxBulls yes sir, my question is regarding such type of institute

Yes, Approval u/s 10(23) is MANDATORY!

@@TaxBulls what is the remedy if approval has not been taken by mistake

We need to speak Tomorrow to discuss various aspects which of course can not be discussed here. Regards, Suresh Wadhwa | 98102 90022

Yes, this will be Corpus Donations. Please make sure to Invest the amount received strictly as per Bucket of Investments prescribed in Section 11(5) of the Income Tax Act, 1961.

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BOTH Answers are Yes!

Pl watch our Other Videos on this Channel. There are specific Videos on Section-12AB as well

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Taking Loans to achieve the Main Objects of the trust is one of approved way. There are many Clauses in the Income Tax Act and Tax Audit Reports which requires the Trust to clearly distinguish and maintain separate records for Loans and it’s repayments to be considered as Application of Income in the year of Repayment.

Thank you very much Sir......May God bless you ever for the wonderful work you are doing...... Sharing and spreading knowledge on the most ambiguous topic in income tax....

If there was hardly any major activity, then you can forget and move on. The same can be filed once the tax department issues some notice to your NGO for the AY 2021-2022. Contrary to the above, If there were major activities and projects undertaken, that ITR can still be filed under the provisions of UPDATED RETURN. You have to take this call.

As on this date, almost all terms and conditions for claiming exemption to be adhered by the First Regime NGOs [claiming Section 10(23C) exemption] OR Second Regime NGOs [Claiming Section 11-12 Exemption] are same and identical. Answer to your Question is Yes, Section 10(23C) NGOs are also required to apply at least 85% of the income in order to claim exemption. Please see Explanations 3, 4 & 5 inserted to the 3rd Proviso to Section-10(23C) by the Finance Act, 2022 w.e.f. 01.04.2023.

But sir it only speific for subclause iv , v , vi .. 1..means no limit for iiiad ?... 2. Limit only for institute have certificate for excemption ?

I do not see any bar or any kind of illegality in these advertisements. For fund raising purposes, it is okay to do Radio or TV advertisements.

@@TaxBulls Thanks you so much for the reply. I though I will not get a reply. A quick followup question. Can we classify this Radio or TV ad expense as an expense of NGO or it has to be self borne.

Yes, it is called ‘Expense incurred on Funds raising activities’ on the debit side of Income & Expenditure Account. An NGO in its wisdom may spend say INR 20/- on these activities out of INR 100/- collected from General/ Unrestricted Donations. It is absolutely okay.

The Govt Employees are advised to check their terms of Employment with the Govt. 2. Generally, there is no bar on accepting an Honorary Position in an NGO; but for safety’s sake or avoid any hassles later, they are advised to check/ intimate/ notify their Office before joining the NGO for any position.

No Specific or Separate Registration is required u/s 10(23C)(iiiad) upto Gross Receipts of INR 5 Crores.

अपना ईमेल पता भेजे।

Dear Raghav Raghuvanshi, My reading is Yes, exemption u/s 10(23c)(iiiad) can still be claimed while filing updated return. Reason: Section 10(23c)(iiiad) is still out of the purview of 20th proviso to clause (23C) of section 10. ____________________________________________ Denial of exemption where return of income is not furnished within time- As per the provisions of 20th proviso to clause (23C) of section 10 of the Act, if the return of income is not furnished by a trust or institution under first regime within the time u/s 139 of the Act, exemption under sub-clause (iv)/(v)/(vi)/(via) of clause (23C) of section 10 of the Act shall not be available to such trust or institution.

Thanks alot sir, one more query, whether we can proceed with tax audit now??

@@raghavraghuvanshi7868 Yes!

​@@TaxBullswhich form to fill sir then?

NGO का काम होता है समाज की सेवा करना न कि अपने ही कुछ एक विशेष सदस्यों के साथ धन का लेन-देन करना। जो सब आप करना चाह रहे हैं ये सभी कार्य एक Nidhi Company या Mutual Benefit Company में ज़्यादा बेहतर तरीक़े से किये जा सकते हैं। इस बार Nidhi Company या Mutual Benefit Company के बारे में जानकारी इकट्ठी करें।

@@TaxBulls thanks sir Nidhi company k liye 200 minimum members ki jarurat hoti h Hm jyda se jyda 50 hi honge sir

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