What is the Section 35AC, eligibility and process to obtain?

Dear Friends

Recently lot of individual are saying large fund will come from foreign delegate it are around crores of Rupees. They are asking 35 AC. So I have no Idea on 35 AC. Please any one have well idea please share information us.

  1. What is the 35ac?
  2. Who can eligible for this 35ac?
  3. What are the process and who will give it?

Thank You.

With Regards

Ashok Shamala

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2 Responses to What is the Section 35AC, eligibility and process to obtain?

  1. Dear Ashok,

    Please beware of all those promising money from foreign delegates under S 35AC. They have no idea what they are talking about.

    S. 35AC is the section which entitles an NGO to receive tax exempt donations, just like S.80G. Main difference is that while S.80G entitles donor to claim 50% tax exemption, S.35AC exempts the donor to claim 100% tax deduction. For example, if a corporate wishes to donate and also claim that expenditure than if NGO has only 80G, it will not be very attractive, however if the NGO has S. 35AC exemption, the corporate can claim 100% deduction in taxes. Further restrictions like 10% of taxable income is not applicable in case of S. 35AC. Thus this exemption has much larger incentive for the donor.

    Regarding foreign delegate giving lots of money, that is total hyperbole, since the foreign delegate will not be interested in Indian Tax exemptions. However S. 35AC is likely to be quite attractive to corporates for giving CSR grants.

    For getting S. 35AC a National level committee (under the chairmanship of an eminent figure) is constituted by Ministry of Finance, projects have to be submitted to this committee, which will take decision on its merits.

    Hope above is useful to SRRF Dialogue members !

    subhash mittal

    • B V.Soma Sastry says:

      Dear Subhashji,

      This has been very informative since my understanding was limited to the 50% and 100% exemptions under 80G and 35AC respectively.

      Thanks and regards,

      B V Soma Sastry

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