Kindly provide your expert opinion
I could not reach through your web site as the same is not get opened
There is an N G O registered under 12 A
During the last financial year it has earned 2.4 lakhs as interest from its fixed deposits and
Savings Bank account
The F D and S B account is from the corpus donations and other accruals of prior years
There is no income other than the bank interest of 2.4 lakhs
No expenditure is there other than office maintenance – which is 3 thousand
Thus there us an income of 2.4 lakhs from interest and expenses of 3 thousand leaving a surplus of 2.37 lakhs.
The utilization is clearly very low
As income/ surplus is below taxable limit (2.50 lakhs), the N GO can claim T D S made by bank
No intimation of cary forward of unutilized fund is filed with the I T O any complications are there
an advise on the matter will be highly appreciated
Regards
H Iyer
When you say theres an income of 2.5 lakes, then taxiability arises till an auditor certifies its exemption status.
Dear Iyer,
If the NGO is having registration under 12 A (a) of IT Act, it gets tax exemption from whatever income it has received in a year. Your auditor has to file the IT return mentioning your 12 A (a) exemption status and you need not pay any tax. Of course, you have to give a declaration that the excess of 85% of the annual income of your organisation remaining unspent with you by the financial year end would be spent within the next 6 months. If you had not given that declaration, but if you had spent the excess amount within the next 6 months, then you can explain that position, if IT dept raises any query against non-submission of that declaration.. So long you have 12 A (a) exemption, you need not have any worry of tax.
S.S.Shiva