Registered non-profit organisations face taxation on regular, specified and residual income when compliance or activity rules are breached. Failure by a registered non profit organisation to maintain books, obtain audits, file returns, or refraining from prohibited commercial activity makes its regular income for the tax year taxable after reduction only by specified allowable expenditures incurred in India for its objects, subject to conditions excluding corpus, borrowings, donations, prohibited payments and certain depreciation/application constraints; specified and residual income not covered are also chargeable and no other deductions or set offs are permitted.
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Provisions expressly mentioned in the judgment/order text.
Registered non-profit organisations face taxation on regular, specified and residual income when compliance or activity rules are breached.
Failure by a registered non profit organisation to maintain books, obtain audits, file returns, or refraining from prohibited commercial activity makes its regular income for the tax year taxable after reduction only by specified allowable expenditures incurred in India for its objects, subject to conditions excluding corpus, borrowings, donations, prohibited payments and certain depreciation/application constraints; specified and residual income not covered are also chargeable and no other deductions or set offs are permitted.
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