Anonymous donations tax treatment imposes a punitive tax on excess anonymous contributions and disallows related deductions. Anonymous donations are taxed by first applying a higher specified rate to anonymous donations exceeding the greater of five per cent of total donations or one lakh rupees, and then aggregating that tax with the tax that would have been payable if the organisation's total income were reduced by the amount of those anonymous donations. The provision applies even where the donation is directed to the corpus, and no outgoings are allowable in respect of anonymous donations. 'Anonymous donation' is defined by absence of prescribed donor identity and address particulars.
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.
Anonymous donations tax treatment imposes a punitive tax on excess anonymous contributions and disallows related deductions.
Anonymous donations are taxed by first applying a higher specified rate to anonymous donations exceeding the greater of five per cent of total donations or one lakh rupees, and then aggregating that tax with the tax that would have been payable if the organisation's total income were reduced by the amount of those anonymous donations. The provision applies even where the donation is directed to the corpus, and no outgoings are allowable in respect of anonymous donations. "Anonymous donation" is defined by absence of prescribed donor identity and address particulars.
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