Dear Sir,
I have some doubts about the 80 G receipts and the IT 35 Ac and 35 i, i & ii.
What is the limit of the receipts under the 80 G.
What is the relevance of the Indian IT exemptions for the foreign donors.
Please share your comments.
Mohankumar
CADRE- India
(Center for Action Development Research and Education in India)
Kurumathoor, Kuzhithurai, PO, Kanyakumari, Dist. Tamil Nadu. India. PIN. 629163
Dear Mohan,
Basic principle of the Income Tax exemptions that you want to know about is that these are available to persons who give donations to NGOs. Govt wants to prmote giving for social causes and hence provides incentives to the donors in the form of tax exemptions for giving donations. Of course only those NGOs who have taken these registrations would be able to issue receipts to the donors which entitle them for exemptions.
Various exemptions that you have asked for. Everyone knows about S.80G exemption. This entitles an individual 50% exemption against the donation given. Other conditions Soma Shastri has already covered.
S.35AC is available to those persons who have business / profesional income. 100% exemption is available. Thus many corporate houses may prefer using this method of donation under S.35AC, considering tax benefit is not available otherwise. Therefore it makes eminent sense for NGOs to apply for projects under S.35AC. National Committee set up by by centre approves all projects after screening the proposals.
S.35 (1) basically covers expenditure on scientific research. Under this clause their are various deductions are available.
(ii) contribution to a reserach instituion, which could be a society, university, college, etc. for undertaking scientific research – 175% deduction available.
(iia) contribution to another company for undertaking scientific research – 125% deduction available.
(iii) contribution to a reserach instituion, which could be a society, university, college, etc. for undertaking social research – 125% deduction available.
For enabling a company to get the above benefits, the society, university, institution has to have necessary approval from the Income Tax Dept.
Hope above is useful and clarifies your doubts.
Dear Mohan Kumar,
There is no limit for the receipts under 80G. The limit applies to the donor in the sense that a donor can claim exemption only to the tune of 10% of his/her total income during the FY. The deduction will be allowed only if the donor has some income.
Under Section 35 AC, the contributions from the corporates are allowed as charge against profit.
I do not think the IT sections are in any way applicable to foreign donors as the Act itself is not applicable to them. This will only apply to individuals/corporates to whom the IT Act is applicable.
Thanks and regards,
B V Soma Sastry