Step for Accumulation of Income

Posted on March 25, 2016 by SRRF

Dear Friends,

Can you please with a small information.

We have received a donation from a well wisher which was transferred to our FC account on March 10, 2016.

We are finding it difficult to spend 85% of the find within March 31, 2016.

Please suggest.

Warm regards,
Snigdha Sarkar

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4 Responses to Step for Accumulation of Income

  1. Snigdha says:
    April 2, 2016 at 9:05 am

    Dear Soma Ji and Subhas Ji,

    Thank you very much for your guidance.
    This was very useful.
    Warm regards,

    Snigdha

    Snigdha Sarkar

  2. Subhash Mittal says:
    March 28, 2016 at 11:42 am

    Snighdha, Soma has already given you correct position. My suggestion is please ensure that Income Tax return (ITR 7) is filed by due date (generally 30th September), along with necessary Board resolution and Form 10. Link given below. http://www.aadisol.in/aca/sa/forms/1176.pdf

    I also suggest that you consult your Tax Consultant in this regard.

  3. B V Soma Sastry says:
    March 28, 2016 at 5:57 am

    Dear Snigdha,

    Please note that the 85% usage is for entire income/donation of the NGO and not for each donation. If you are not able to spend 85% of the total income, then the Board can pass a resolution in this regard that the unspent amount will be carried forward to the subsequent year.

    Thanks and regards,

    B V Soma Sastry

    • Bijay Pratihari says:
      March 28, 2016 at 6:42 am

      donation made to corpus fund need not be spent up to 85% as in case of income. such donations can be 100% retained in Fixed deposit. If it is correct, please confirm.
      best

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