Application of income by registered non-profits: qualifying spending, deemed application, and capital-gain reinvestment determine tax treatment. Section 341 permits application treatment for income used in India for registered charitable or religious objects, while only 85% of donations to another ... Summary
Application of income by registered non-profits: qualifying spending, deemed application, and capital-gain reinvestment determine tax treatment.
Section 341 permits application treatment for income used in India for registered charitable or religious objects, while only 85% of donations to another registered NPO qualifies. It permits qualifying treatment for corpus reinvestment and loan repayment within five years, subject to conditions, while barring double depreciation, earlier excess-application set-off, corpus donations to other NPOs, and application from corpus, borrowings, or accumulated categories. Shortfalls below 85% may be deemed application if timely opted for and subsequently applied; capital gains may be deemed applied through qualifying replacement-asset acquisition.
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