Greetings from Hyderabad!
This is with reference to the 85% utilization as per the provisions of the IT Act. My query is as under:
There are certain projects for which funds are not received in the FY as the funds of the previous years are still with the NGO. Do we have to consider the expenditure for calculation 85%. The receipt was already considered in the previous year and so that has been accounted for as part of the accumulation.
The second aspect is the interest earned on the NGOs own funds and the expenditure incurred from the said receipts. Should we treat the interest as receipt and the corresponding expenditure for working out 85% utilization.
Thanks and regards,
B V Soma Sastry