Charitable income application rules define qualifying spending, deferred application, and capital-gain reinvestment for registered NPOs. Section 341 governs application of income by registered NPOs for their charitable or religious purposes in India. It allows qualifying expenditure, treats ... Summary
Charitable income application rules define qualifying spending, deferred application, and capital-gain reinvestment for registered NPOs.
Section 341 governs application of income by registered NPOs for their charitable or religious purposes in India. It allows qualifying expenditure, treats only 85% of donations to another registered NPO as application, and excludes corpus donations and application funded from specified excluded sources. Corpus replenishment and loan repayment may qualify within prescribed conditions and timelines. Deemed application is available where regular income application falls below 85%, subject to timely exercise of option and subsequent actual application. Capital gains may be deemed applied on qualifying reinvestment in another capital asset.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 1 
