Application of income: rules for allowable charitable spending, donations, corpus treatment and five-year reinvestment requirements. Application of income by a registered non-profit organisation includes sums applied for registered charitable or religious purposes when paid in the tax year and allowable under specified expenditure provisions; donations to other registered non-profits qualify at 85%, while corpus donations do not qualify. Reinvestment into permitted corpus modes and repayment of loans may qualify as application if made within five years of the original application and the original application complied with the Part and post-dated 31 March 2021. Exclusions include depreciation or allowances claimed for assets already treated as application, set offs of excess prior-year applications, and applications originating from corpus, loans, accumulated, specified or deemed accumulated income.
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Provisions expressly mentioned in the judgment/order text.
Application of income: rules for allowable charitable spending, donations, corpus treatment and five-year reinvestment requirements.
Application of income by a registered non-profit organisation includes sums applied for registered charitable or religious purposes when paid in the tax year and allowable under specified expenditure provisions; donations to other registered non-profits qualify at 85%, while corpus donations do not qualify. Reinvestment into permitted corpus modes and repayment of loans may qualify as application if made within five years of the original application and the original application complied with the Part and post-dated 31 March 2021. Exclusions include depreciation or allowances claimed for assets already treated as application, set offs of excess prior-year applications, and applications originating from corpus, loans, accumulated, specified or deemed accumulated income.
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