Charitable purpose under the new regime permits commercial activity subject to objective linkage, receipt limits, and separate accounting. Section 346 permits a registered non-profit organisation pursuing advancement of an object of general public utility to carry on commercial activity only ... Summary
Charitable purpose under the new regime permits commercial activity subject to objective linkage, receipt limits, and separate accounting.
Section 346 permits a registered non-profit organisation pursuing advancement of an object of general public utility to carry on commercial activity only when it occurs in the course of actual pursuit of that object, commercial receipts remain within 20% of total receipts for the relevant tax year, and separate books of account are maintained. Section 345 applies to other registered non-profit organisations and permits commercial activity only if incidental to their objectives and separately accounted for.
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