Total income computation for non-profit organisations: cash accounting generally, accrual accounting required for registered companies. Total income of a non-profit organisation in relation to any charitable activity during the financial year is the gross receipts reduced by outgoings, computed in accordance with the cash system of accounting; however, where the non-profit is a company registered under section 25 of the Companies Act, 1956 the computation shall be made in accordance with the mercantile system of accounting.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Total income computation for non-profit organisations: cash accounting generally, accrual accounting required for registered companies.
Total income of a non-profit organisation in relation to any charitable activity during the financial year is the gross receipts reduced by outgoings, computed in accordance with the cash system of accounting; however, where the non-profit is a company registered under section 25 of the Companies Act, 1956 the computation shall be made in accordance with the mercantile system of accounting.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
