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# 14.1.Taxation of Charitable Institutions

# 14.1.Taxation of Charitable Institutions

Taxation of charitable institution (Short).pdf

Topic to be discussed

In this Session, DR. M.K. Bhatt will discuss the major issues in the taxability of the charitable institutions. There are various confusions faced by the professionals while handling the taxation of a charitable institution. We will try to resolve the queries and problems faced by the professionals.

Questions asked during the session.

1. Respected Sir, One query wrt registered charity family trust - One of the Main trustee would like to invest in Insurance company ( out of his source of income) and later on assign the same policy to Trust ; and monthly income that flow from that policy will be directly credited to trust by Insurance company. ( insurance company agreed for this ) And the amounts will be utilized for trust objectives only ; my query in this regard is a) will that monthly amounts received by trust from insurance company is taxable in whose hands? b) or will it fall under the concept of property held under trust to utilise the proceeds for its basic objectives? and can be claimed as money utilised for the charitable activities of the said trust c) will in any way Section 13 will come into play? . Kindly suggest . Thanking you in advance - Gupta B gullapudi
2. What is covered under advancement of any other object of general public utility?
3. A 12A registered organization receives rent from property of Rs. 20 lacs which amounts to 90% of total receipt. Is there any restriction on such income?
4. Sir what will be the position if thr application for registration moved in form no 56D is rejected. Will it amount to cancellation?
5. Whether corpus donation can be used for application of object clause?
6. Whether religious Trust and charitable trust can be registerd us 12AB and 80G?
7. A 12AA registered trust taking care of old age persons receives amount in its hundi anonymously. Is it fully taxable > 100000 at MMR?
8. Sir what is procedure of provisional registration...same 10A 10G or different forms are there?
9. Sir, after filling form 10, is there any time limit to use the income which we kept as set apart?
10. If a trust is charitable engaged in educational activity. It receives donation for construction of school building and school is not registered or approved in I Tax Act. Whether donation recd shall be exempt ?
11. Is there any amendment in section 80G registration procedure?
12. Trust jo 12AA me na ho to basic exemption milege ?
13. Sir, if a trust is registered under section 12AA (medical purpose), it does not have any income in the whole previous year other than FD interest income of 47 lakhs. Question is, can that trust take exemption of 10(23C) or is 85% application mandatory?
14. Sir, In case where we have applied for appllication u/s 12AA in case of a charitable institution which is pending, do we have to apply again after 1.10.2020 or it will get automatically transferred?
15. How much donation for construction can be received in Cash ?
16. What does income mean while computing charitable institution income?
17. Sir application has been made in month of March 2020 for registration under section 12. what will be status of the application?
18. Sports association collecting fees whether shall come under 6th Limb and shall be treated as carrying on business?
19. If a trust is charitable engaged in educational activity. It receives donation for construction of school building and school is not registered or approved in I Tax Act. Whether donation recd shall be exempt ? Trust has not commenced classes since building under construction.
20. How to compute business income here?
21. If any capital expenditure is incurred exceeding rs. 10000 then whether it will be governed under the provisions of sec 40A(3)?
22. Sir, we have to apply for exemption registration of a new charitable institution, should we wait till 1.10.2020?
23. Sir, what is corpus and non corpus fund to be filled in the IT form?
24. Amount accumulated by filing form no. 10 for five years. Can the said period of 5 years be extended at the end of 5 years?
25. How to carry forward excess expense of application, if ITR form does not give separate box?

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