Trusts and NGOs Ready Reckoner

This book explains the tax implications during the life cycle of a charitable trust, starting from incorporation, registration, maintenance of books of account, scheme of taxation, computation of income, filing of the income-tax return, audit report, cancellation of registration, forfeiture of exemption, etc. It contains an extensive discussion of the provisions of the Income-tax Act, tutorials and guides on filing various forms under the Act.

This book is an essential resource for anyone interested in the legal landscape surrounding trusts & NGOs, containing a comprehensive collection of landmark rulings on all controversial issues.

The Present Publication is the 4^th Edition and has been amended by the Finance Act 2023. This book is authored by Dr Manoj Fogla, CA Suresh Kumar Kejriwal & CA Tarun Kumar Madaan, with the following noteworthy features:

• [Clear & Accessible Language] is followed throughout this book
• [Analysis & Impact of Amendments] by the Finance Act 2023
• [Exhaustive Coverage of the Registration & Approval Process] under the following Sections:
  • Section 12AB
  • Section 10(23C)
  • Section 80G
• [Explanation to the Scheme of Taxation & Computation of Income] of NGOs
• [Practical Guide] for the following:
  • Filing Registration Application in Form No. 10A and Form No. 10AB
  • Filing of Statements of Donations in Form No. 10BD
  • Filing of Audit Reports in Form 10B and Form 10BB
• [Flowcharts & Illustrations] Explaining the law relating to the taxation of NGOs
• [Landmark Rulings] on all controversial issues
• [Tabular Overview of Compliances] has been provided in this book
• [Impact Analysis of Supreme Court Rulings] in the case of New Noble Educational Society [2022] 143 taxmann.com 276 (SC) and Ahmedabad Urban Development Authority [2022] 144 taxmann.com 78 (SC)

The detailed contents of the book are as follows:

• Introduction and Legal Framework of NGOs in India
• Meaning of Charitable Purpose
• Religious & Partly Religious Trust
• Amendment of Trust Deed
• Registration Scheme under Section 12AB
• Registration of Trust Formed without an Instrument
• Practical Guide to Registration under Section 12AB
• Conditions for claiming exemption under Sections 11 and 12
• Scope of Income under Section 11
• Application of Income
• Scheme of Taxation and Computation of Income
• Corpus Donation
• Inter-charity Donations
• Project Grants whether Income
• Implications of Section 2(24)(xviii) on Grant and Corpus Donation
• Treatment of Donations in Kind
• Treatment of Capital Gains
• Treatment of Depreciation
• Business Activity under Section 2(15)
• Incidental Business under section 11(4A) and Business held as Trust Property under Section 11(4)
• Options available for accumulation of Income
• Specified Modes of Investments or Deposits under section 11(5)
• Set off & carry forward of past deficit
• Source of Application of Income
• Anonymous Donations
• Penal Taxation of NGOs
• Cancellation of Registration
• Tax on Accreted Income of NGOs
• Taxation when Registration Status is Lost
• Approval under Section 80G
• Practical Guide to Approval under Section 80G
• Practical Guide to Furnish Statement of Donations in Form 10BD
• Tax Implication of CSR Expenditure
• International Activities of NGOs Outside India
• Maintenance of Books of Account
• Requirement of Audit under Section 12A
• Practical Guide to Upload Audit Report in Form 10BB
• Practical Guide to Upload Audit Report in Form 10B
• The requirement to Submit ITR under section 12A
• Practical Guide to File Form ITR-7
• Forfeiture of various Incomes under Section 13
• Forfeiture – Charitable activity for a particular religious community or caste
• Forfeiture – Benefit to Interested Person
• Forfeiture – Violation Regarding Investment under Section 13(1)(d)
• Forfeiture – Investment in Section 8 Company and Incubatee Companies
• Overview and Fundamental Concepts of Exemption Scheme under Section 10(23C)
• Government Funded and up to INR 5 crore Annual Receipt Institutions
• Exemptions and Conditions for Approval under Section 10(23C)
• Approval and Cancellation under section 10(23C)
• Practical Guide to Approval under section 10(23C)
• Tabular Overview of Compliances under Section 10(23C)
• Comparative Analysis under Sections 11 & 10(23C)
• Mutual Societies
• Exemption to Institutions notified under section 10(46) and 10(46A)