Present Income Tax Act 1961 has provided for tax treatment of anonymous donations as per Sec. 115BBC. Here the term is anonymous donations and this is different from cash donations. In case an NGO has received Cash donations, our suggestions are as follows:
- Please obtain PAN / ID card proof from donors / members of the NGO so that no one can refuse/ refute such cash payment and also get the cash receipts counter signed by payers.
- Secondly, in the present scenario, there is some confusion regarding tax treatment of cash deposits, even if these are proper, identified and accounted for. Govt. is thinking of making every tax payer to declare all cash deposits in 500/ 1000 denominations notes after 8th November 2016 till 30th December 2016 and taxing such deposits taxable. To what extent such intention is implemented and how is a big question.
Therefore, please wait for some clarity. The relevant section is 115BBC (anonymous donations- flat rate-30%)
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: firstname.lastname@example.org; website: http://www.srr-foundation.org