{"id":8949,"date":"2020-05-19T16:15:15","date_gmt":"2020-05-19T10:45:15","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=8949"},"modified":"2020-12-18T15:17:53","modified_gmt":"2020-12-18T09:47:53","slug":"paid-donations-tax-treatment-for-charitable-purpose","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/","title":{"rendered":"Paid Donations: Guide on Tax Treatment for Charitable Purpose"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A charitable donation is a commonly\nknown fact that an individual or an organization offers to a non-profit\ninstitution, charity or private organizations. The charitable donations are\nusually in the form of cash; however, they can also get the receipts in the\nform of real estate, motor vehicles, appreciated securities, or other assets or\nservices.<\/p>\n\n\n\n<p>Charitable donations generally are the primary source of funding for many charitable organizations and non-profit organizations. In most countries, an individual&#8217;s charitable donation provides the donor with an income tax deduction.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#Does_the_Commission_Income_of_Trust_get_taxed\" >Does the Commission Income of Trust get taxed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#What_do_you_mean_by_donations_which_are_Eligible_under_section_80G\" >What do you mean by donations which are Eligible under\nsection 80G?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#What_are_Donations_that_provide_100_and_50_Deduction_Qualifying-eligibility_with_No_Limits\" >What are Donations that provide 100 % and 50% Deduction\nQualifying-eligibility with No Limits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#What_are_Donations_that_provide_100_and_50_Deduction_with_Its_10_of_Adjusted_Total_Income\" >What\nare Donations that provide 100% and 50% Deduction with Its 10% of Adjusted\nTotal Income?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#What_do_you_mean_by_donations_which_are_Eligible_under_section_80GGA\" >What do you mean by donations which are Eligible under\nsection 80GGA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#What_are_the_donations_get_classified_as_income_to_charitablereligious_trust\" >What\nare the donations get classified as income to\ncharitable\/religious trust?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#What_are_the_Relevant_Cases_laws_delivering_basic_nuances_of_Donations\" >What are the Relevant Cases laws delivering basic nuances\nof Donations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/paid-donations-tax-treatment-for-charitable-purpose\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_the_Commission_Income_of_Trust_get_taxed\"><\/span>Does the Commission Income of Trust get taxed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Generally, the commission income only derives from insurances falls under the head of income, which will base on the kind of such earnings. More0ver, the Commission income of <a href=\"https:\/\/corpbiz.io\/trust-registration\"><strong>trust<\/strong><\/a> falls under the\u00a0<strong>residuary head<\/strong>\u00a0of income, which is known as Income from Other Sources.\u00a0<\/li><li>Yet, if a trust is involved in the only \u2018commission business,&#8217; then only the income derived from commission business shall be presented to tax under the head &#8220;<strong>Income commencing from business and profession<\/strong>,&#8221; and not under \u2018Income from Other Sources,&#8221;<\/li><li>Moreover, there is no need for any license for such accomplishments. According to the procedural aspects, you need to show it as your income while <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>filing income tax\u00a0return<\/strong><\/a>. After that, pay whatsoever\u00a0<strong>tax<\/strong>\u00a0will get allocated to pay.<\/li><li>The itemized deductions must be submitted with tax filings to get a claim upon deduction for the donation. <strong>The Internal Revenue Service <\/strong>needs such contributions to be made to organizations that meet the requirements under the tax code as a charitable institution.\u00a0<\/li><li><strong>Keep the records<\/strong>\u00a0of charitable donations for cash or other monetary contributions only if the donation is to be claimed for tax deductions under the Income Tax Act. It may consist of a receipt or written communication from the charitable organization that quotes the <strong>amount contributed<\/strong>\u00a0to the date, and the name of the institute or organization. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_donations_which_are_Eligible_under_section_80G\"><\/span>What do you mean by donations which are Eligible under\nsection 80G?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Someday or the other, few of us have thought to give charity and to work dedicatedly towards the society. With this thoughtful gesture of notability, the Indian government and legislature also show support towards this Nobel gesture. With this, Section 80G of the <strong>Indian Income Tax Act<\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/index.aspx\"><strong>[1]<\/strong><\/a><\/sup> permits you a tax deduction on donations made to any charitable institute.<\/p>\n\n\n\n<p><strong>Section 80G<\/strong><\/p>\n\n\n\n<ul><li>Donations\nmade to certain <strong>&#8216;relief funds&#8217;<\/strong>\nnature of charitable institutions can get claimed as a deduction. It is allowed\nunder Section 80G of the Income Tax Act. However, all the donations are not\nqualified for deductions under section 80G. The said donations made can get the\ndeduction claimed by any taxpayer, such as individuals, companies, firms, etc.<\/li><\/ul>\n\n\n\n<p><strong>Mode of Donation<\/strong><\/p>\n\n\n\n<ul><li>To\nget the deduction get claimed for the contribution\/donations, it has to get\nmade via a&nbsp;<strong>cheque \/a draft or in cash<\/strong>&nbsp;only. In this case, all\nthe &#8216;<strong>In-kind&#8217;<\/strong>&nbsp;contributions included matters such as food,\nmeasurable, clothes, drugs that do <strong>not\nqualify<\/strong> for a deduction for the donations made under section 80G.<\/li><\/ul>\n\n\n\n<p><strong>Cash Limit<\/strong><\/p>\n\n\n\n<ul><li>Previously,\nall the donations made in cash&nbsp;<strong>exceeding Rs 10,000&nbsp;<\/strong>were allowed.\nIf done now, it would have in the&nbsp;<strong>revocation of a permitted deduction<\/strong>&nbsp;for\ncontributions made.&nbsp;<\/li><li>As\nwell, after the&nbsp;<strong>financial plan of 2017<\/strong>, any donations provided in\ncash more than Rs 2,000 will not be allowed as deduction.&nbsp;<strong>From\nFinancial Year 2017-18 onwards<\/strong>, the donations above Rs 2,000 should be made\nin any mode other than cash to qualify as a deduction under section 80G.<\/li><\/ul>\n\n\n\n<p><strong>Total Adjusted income<\/strong><\/p>\n\n\n\n<ul><li>Adjusted\ngross total income is the total gross income reduced by the aggregate amount\ndeductible under Sections 80CCC to 80U, which includes Exempt income, Long-term\ncapital gains, Income Us\/ 115A, 115AB, 115AC, 115AD, 115D relating to\nnon-residents and foreign companies.<\/li><\/ul>\n\n\n\n<p><strong>Percentage of Donation&nbsp;<\/strong> <\/p>\n\n\n\n<p>Numerous donations specified in section 80G are entitled to a deduction for&nbsp;<strong>100% or 50% &#8216;with or without&#8217; restriction<\/strong>&nbsp;as per section 80G. To be able to claim this deduction, the subsequent details have to get attached with your Income Tax Return file:- <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-82.png\" alt=\"Income Tax Return file\" class=\"wp-image-8950\" width=\"541\" height=\"478\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-82.png 637w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-82-300x265.png 300w\" sizes=\"(max-width: 541px) 100vw, 541px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Donations_that_provide_100_and_50_Deduction_Qualifying-eligibility_with_No_Limits\"><\/span>What are Donations that provide 100 % and 50% Deduction\nQualifying-eligibility with No Limits?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>The donations given to the following Fund Relief Organisation will allow <\/em><strong><em>100% Deduction<\/em><\/strong><em> Qualifying-eligibility with No Limits-\u00a0<\/em><\/p>\n\n\n\n<ul><li>National\nDefence Fund<\/li><li>Prime\nMinister\u2019s National Relief Fund<\/li><li>National\nFoundation for Communal Harmony<\/li><li>National\nEminence Institute&nbsp;<\/li><li>ZilaSakshartaSamiti<\/li><li>State\nGovernment funds medical relief to the poor.<\/li><li>National\nIllness Assistance Fund<\/li><li>National\nBlood Transfusion Council<\/li><li>State\nBlood Transfusion Council<\/li><li>National\nTrust for Welfare of Persons (Autism, Cerebral Palsy, Mental Retardation, and\nMultiple Disabilities)<\/li><li>National\nSports Fund<\/li><li>National\nCultural Fund<\/li><li>National\nFund for Technology Development\/Application<\/li><li>National\nChildren\u2019s Fund<\/li><li>Chief\nMinister\u2019s Relief Fund<\/li><li>Lieutenant\nGovernor\u2019s Relief Fund<\/li><li>The\nArmy Central Welfare Fund&nbsp;<\/li><li>The\nIndian Naval Benevolent Fund<\/li><li>The\nAir Force Central Welfare Fund,&nbsp;<\/li><li>Andhra\nPradesh Cyclone Relief Fund<\/li><li>Maharashtra\nChief Minister\u2019s Earthquake Relief Fund&nbsp;<\/li><li>Gujarat\nRelief Funds to the victims of the earthquake<\/li><li>Prime\nMinister\u2019s Armenia Earthquake Relief Fund<\/li><li>Public\nFund Contributions India to Africa<\/li><li>Swachh\nBharat Kosh&nbsp;<\/li><li>Clean\nGanga Plan Fund<\/li><li> National Fund for Control of Drug Abuse&nbsp; <\/li><\/ul>\n\n\n\n<p><em>The donations given to the following Fund Relief Organisation will allow <\/em><strong><em>50% Deduction<\/em><\/strong><em> Qualifying-eligibility with No Limits-\u00a0<\/em><\/p>\n\n\n\n<ul><li>Jawaharlal\nNehru Memorial Fund<\/li><li>Prime\nMinister\u2019s Drought Relief Fund<\/li><li>Indira\nGandhi Memorial Trust<\/li><li>Rajiv\nGandhi Foundation<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Donations_that_provide_100_and_50_Deduction_with_Its_10_of_Adjusted_Total_Income\"><\/span>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nWhat\nare Donations that provide 100% and 50% Deduction with Its 10% of Adjusted\nTotal Income?\n\n\n\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>Donations that provide\u00a0<strong>100% Deductions<\/strong>\u00a0with Its 10% of Adjusted Total Income are as follows-<\/em><\/p>\n\n\n\n<ul><li>Any\ndonations given to the government or similar approved local authority,\norganization, or association should get utilized to endorse schemes or <strong>works towards family planning<\/strong>.&nbsp;<\/li><li>Any\nDonation by a Company to the <strong>\u2018Indian\nOlympic Association\u2019<\/strong> or similar approved association or institution\nestablished in India for the expansion of infrastructure for <strong>sports and games<\/strong>, or the\nprotection\/endorsement of sports and tournaments happening in India.<\/li><\/ul>\n\n\n\n<p><em>Donations that provide\u00a0<\/em><strong><em>50% Deductions<\/em><\/strong><em>\u00a0with its 10% of Adjusted Total Income are as follows-<\/em><\/p>\n\n\n\n<ul><li>Donating\nto any other fund relief organization or any institution which gratifies the\nconditions stated in <strong>Section 80G (5)<\/strong>\nof the Act.<\/li><li>Donating\nto any Government or any local authority meant to be utilized for any\ncharitable purpose- <strong>other than the\nobjects of endorsing family planning.<\/strong><\/li><li>Donating\nto any authority established in India to allocate the need for <strong>\u2018housing accommodation<\/strong>.\u2019 It may be for\nplanning, improvement or advancement of cities, towns, villages, etc.<\/li><li>Donating\nto any corporation mentioned in Section 10(26BB) for endorsing the interest of\nthe \u2018<strong>minority community\u2019;<\/strong>&nbsp;Donating to any organization to repairs\nor renovation of any registered Temple, Mosque, Gurudwara, Church, etc.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_donations_which_are_Eligible_under_section_80GGA\"><\/span>What do you mean by donations which are Eligible under\nsection 80GGA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Section 80GGA<\/strong><\/p>\n\n\n\n<ul><li>According\nto the Section 80GGA, it allows deductions for donations made headed for \u2018<strong>scientific\nresearch\u2019<\/strong>&nbsp;or \u2018<strong>rural development<\/strong>.\u2019 This deduction is entitled to\nall assesses such Charitable Organisation. But it does not include those people\nwho have an income from any&nbsp;<strong>business or occupation<\/strong>.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Cash Limit &amp; Mode of Donation<\/strong><\/p>\n\n\n\n<ul><li>After\nthe&nbsp;<strong>financial plan of 2017<\/strong>, any donations provided in cash more\nthan Rs Two thousand will not be allowed as deduction.&nbsp;<strong>Financial Year\n2017-18 onwards<\/strong>&nbsp;held that the donations above Rs.2,000 should be made\nin any mode other than cash to qualify as a deduction. (under S. 80GGA)<\/li><\/ul>\n\n\n\n<p><strong>Classifications of Donation<\/strong><\/p>\n\n\n\n<p>Donations need to get paid to <strong>\u2018research association<\/strong>,\u2019 which embark on <strong>scientific<\/strong> research. Any contributions paid to a college, university, or any other institution that is all approved by the prescribed authority for the said purpose would also constitute the same under section 35(1) (ii).&nbsp;<\/p>\n\n\n\n<p>Few agendas towards the said purpose are as follows-<\/p>\n\n\n\n<ul><li>Commences any program of <strong>rural development<\/strong> approved under section 35CCA<\/li><li>Commences <strong>training of person<\/strong>(s) for implementing programs of rural development<\/li><li>Carries out missions or schemes approved under <strong>section 35AC<\/strong><\/li><li>Carries out missions for <strong>Rural DevelopmentFund<\/strong>s<\/li><li>Carries out missions for <strong>Afforestation<\/strong><\/li><li>Carries out missions to accomplish <strong>National Poverty Eradication<\/strong>&nbsp;<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/registration-aspect-of-educational-trust\/\">Guide: Registration Aspect of Educational Trust<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_donations_get_classified_as_income_to_charitablereligious_trust\"><\/span>What\nare the donations get classified as income to\ncharitable\/religious trust? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Voluntary Donations under Section\n11(1)<\/strong><\/p>\n\n\n\n<ul><li>Voluntary\ndonations are received by the charitable\/religious trust, which forms a part of\nincome of the trust. There are two types of Voluntary Donations, those are:-<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-83.png\" alt=\"donations get classified as income to charitable\" class=\"wp-image-8951\" width=\"496\" height=\"412\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-83.png 602w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-83-300x250.png 300w\" sizes=\"(max-width: 496px) 100vw, 496px\" \/><\/figure><\/div>\n\n\n\n<p><strong>Corpus donations S.11<\/strong><\/p>\n\n\n\n<ul><li>Any donation by a\ncharitable or religious trust or organization to any other trust or\ninstitution; registered&nbsp;<strong>u\/s 12AA<\/strong>, with a detailed direction to form part of the corpus of\nrecipient trust, will not be considered as application of income in place of\nthe donor trust\/institution.<\/li><\/ul>\n\n\n\n<p><strong>Anonymous\nDonations&nbsp;<\/strong><\/p>\n\n\n\n<ul><li>Anonymous donations are fundamentally known to be the donations where the person in receipt of the donations <strong>doesn\u2019t uphold any record <\/strong>of the person compassionating the donation. It may include the Offerings given in the temple-donation box or any other similar way.<\/li><li><strong>Taxability-<\/strong>&nbsp;The amount computed in the following step shall get exempted. Moreover, the remaining amounts of anonymous donations are taxable in the hands of such charitable\/religious trust at the <strong>rate of 30% under Section 115BBC<\/strong>. <\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-84.png\" alt=\"Anonymous donations\" class=\"wp-image-8952\" width=\"500\" height=\"489\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-84.png 624w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-84-300x294.png 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Relevant_Cases_laws_delivering_basic_nuances_of_Donations\"><\/span>What are the Relevant Cases laws delivering basic nuances\nof Donations?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Case: &#8211; Dharmaposhana Co v.\nC.I.T.<\/strong><\/p>\n\n\n\n<p>It has noted that the main objects of the company itself is, inter alia, to raise receiving donations, subscription by lending money on interest. By such other means, it may deem fit for the promotion of charity, education, industries, etc. and the public good.<\/p>\n\n\n\n<p><strong>Case: &#8211; Parichchan Das v.\nBihar State Board of Religious Trusts and Others<\/strong><\/p>\n\n\n\n<p>It has noted that the donation of lands by members of the public to the institution and the location of the temple at a place freely accessible (convenient to the public) are essential circumstances.<\/p>\n\n\n\n<p><strong>Case: &#8211; Trustees of Sri Kot\nHindu StreeMondal v. C.I.T<\/strong><\/p>\n\n\n\n<p>It has noted that \u201c<strong>Voluntary contributions<\/strong>\u201d means \u2018<strong>proper donations<\/strong>\u2019. It includes money gifted or given gratuitously and without consideration. However, entrance fees and subscriptions paid by entrants to a society or an institution as a condition precedent to their membership or as the price of admission are not part of voluntary contributions.<\/p>\n\n\n\n<p><strong>Case: &#8211; ShriDwarikadheesh\nCharitable Trust v. I.T.O.<\/strong><\/p>\n\n\n\n<p>It had said that donations to the assessee trust with the specific direction should constitute part of the corpus or capital of the donee trust. Moreover, the donee trust needs to get accepted by the donations subject to that condition.<\/p>\n\n\n\n<p><strong>Case: &#8211; PrabodhanPrakashan\nv. ADIT, &amp;ShriDigambar Jain NayaMandir v. ADIT<\/strong><\/p>\n\n\n\n<p>It is not necessary to identify the contributors to box collections in the case of a temple. It is to comply with the provisions of section 115BBC on anonymous donations at a flat rate of 30% (plus applicable surcharge and education cess) only in the case of charitable trusts, and not religious trusts. The Finance Act, 2006, has inserted section 115BBC with effect from 1st April 2007.<\/p>\n\n\n\n<p><strong>Case: &#8211; C.I.T. v. Trustees of the Jadi Trust<\/strong> <\/p>\n\n\n\n<p>The Bombay High Court held that when a charitable trust hands over a donation to another charitable trust, it will amount to the application of income for charitable purposes by the donor trust. <\/p>\n\n\n\n<p><strong>Case: &#8211; C.I.T. v. Pittie Charitable Trust<\/strong> <\/p>\n\n\n\n<p>The Court held that if a trust receives as donation fixed deposits in a company, there is no lending of income, funds, or property of the trust within the meaning of section 13(2)(a).&nbsp;&nbsp; <\/p>\n\n\n\n<p><strong>Case: &#8211; Kirti Chand Tarawati Charitable Trust v. Director of Income-tax (Exemption) and others<\/strong><\/p>\n\n\n\n<p>The Court found that the assessee trust having received donations for charitable purposes. Instead of being spent on charity, they were utilized for investment to earn returns thereon and use the same for purposes other than charitable purposes viz. construction of the temple. Therefore, the Court upheld the order passed by the authority,&nbsp;<strong>denying renewal of recognition<\/strong>&nbsp;under section 80G of the Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There has been relevant\npublic discussion on the voluntary sector, principally its governance,\naccountability, and clearness. It understood that the voluntary sector must\naddress critical issues on donations through proper self-regulation. Moreover,\nthe government should encourage the evolution of, and subsequently agreement\nrecognition to, an independent, nation-wide level, self-regulatory intervention\nby opening it up to more significant public inspection.<\/p>\n\n\n\n<p>Up till now, we understand that these issues are quite complex. Therefore, this blog has tried to give you a basic understanding of items based on the latest amendments and decided decisions. We at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>, have professionals and legal expertise to mitigate your Trust donations and taxability issues as per your business targets.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/business-income-taxation-of-charitable-institution-u-s-11-4-and-11-4a\/\">Business Income &amp; Taxation of Charitable Institution U\/s 11(4) and 11(4A): In-depth with Case-Laws\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A charitable donation is a commonly known fact that an individual or an organization offers to a non-profit institution, charity or private organizations. The charitable donations are usually in the form of cash; however, they can also get the receipts in the form of real estate, motor vehicles, appreciated securities, or other assets or services. [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":8958,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[152,324],"tags":[532],"acf":{"service_id":"10"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":6718,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/8949"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=8949"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/8949\/revisions"}],"predecessor-version":[{"id":22331,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/8949\/revisions\/22331"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/8958"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=8949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=8949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=8949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}