Application for approval for purpose of section 133(1)(b)(ii) - Section 354 (New) / Section 80G, 12A/ 12AB

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.... 1. Section 354(1) - Eligibility and Conditions for Approval A registered non-profit organisation or a person referred to in Schedule VII, Table Sl. No. 1 may apply to the Principal Commissioner or Commissioner for approval for the purposes of section 133(1)(b)(ii). The application is subject to the conditions specified in clauses (a) to (g). Section 354(1)(a) - No Benefit to Particular Religious Community or Caste The applicant must not be expressed to be for the benefit of any particular religious community or caste. Section 354(1)(b) - Charitable Purpose and Religious Expenditure Limit The applicant must: • be established in India for a charitable purpose; and • not incur expenditure of ....

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.... Time limit for application Time limit for order Validity of approval 1 Activities of applicant have not commenced At any time during the tax year from which approval is sought 1 month from end of month in which application is made 3 tax years commencing from tax year in which application is made 2 Activities of applicant have commenced At any time during the tax year from which approval is sought 6 months from end of quarter in which application is made 5 tax years commencing from tax year in which application is made 3 Applicant has provisional approval and activities have commenced Within 6 months of commencement of activities 6 months fr....

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....ncipal Commissioner or Commissioner shall pass an order approving the application. Section 354(3)(b)(i) - Rejection of Application Where the authority is not satisfied, and the applicant has been given a reasonable opportunity of being heard, the application covered by Table Sl. No. 2 is rejected. Section 354(3)(b)(ii) - Rejection and Cancellation In cases other than Table Sl. No. 2, the Principal Commissioner or Commissioner shall: • reject the application; and • cancel the approval. A copy of the order is required to be sent to both: • the applicant; and • the Assessing Officer. Section 354(4) - Provisional Approval Where the application falls under Table Sl.....

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....eiling for expenditure of a religious nature. Section 354(1)(b) expressly provides a 5% of total income ceiling for expenditure of a religious nature. Transfer of assets Section 80G contains conditions concerning the charitable character and application of assets of the institution/fund. Section 354(1)(c) expressly prohibits constitutional provisions permitting transfer of assets for non-charitable purposes. Accounts Maintenance of regular accounts is a statutory condition in the approval framework. Section 354(1)(d) expressly requires regular accounts of receipts and expenditure. Donation statement The 1961 Act, particularly following the amendments relating to donation reporting, conta....