Charitable Institution - documentary evidence - donation received

[Ravi Jindal]

charitable trust is failed in submitting documentary evidence for supporting the donation recd by them

[Mukesh Kumar]

I think you should refer the provisions of Section 10(23C) as amended by Finance Act, 2006 and New Section 115BBC as inserted by Finance Act, 2006 with effect from 1-4-2007 - The donation for which no documentary evidence is available may be treated as anonymous donation would be liable to tax at 30% accordingly. However, some saving clause is also there.

AI Summary

Anonymous donations taxable when documentary evidence is absent, attracting tax under the amended charitable institution provisions. Donations for which no documentary evidence is available may be characterised as anonymous donations and rendered taxable under the provisions inserted by the Finance Act, 2006; a saving clause exists but the amendment conditions entitlement to exemption on maintenance and production of documentary proof.