Following major changes have taken place which will impact the NGO Sector:
- Yoga has been added as one of the activity under S. 2(15). Earlier Yoga was covered under ‘General Public Utility Clause’ thus providing major income tax benefits to all organisations which are undertaking Yoga as a major activity. Thus now any income generating activity undertaken by such organisations is likely to be tax exempt.
- A lot of confusion and disputes use to arise in interpreting income being generated by organisations registered under the ‘General Public Utility Clause’. It was impacting income generation of a number of charitable organisations. Much sought after clarity has been provided. It has been clarified that any activity in the nature of trade, commerce or business or any activity of rendering any service for fees, cess, etc. Would be allowed only if:
- Such activity is undertaken in the course of actual carrying out of such advancement of object of general public utility; and
- The aggregate receipts from all such activities during the previous year do not exceed 20% of the total receipts of the Trust or institution. [earlier limit was Rs 25 lakhs]
- Under S. 80G, following two will get 100% deduction, as long as they are not part of CSR funds.
- Clean Ganga Fund and
- Swachh Bharat Kosh
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008