This book explains the tax implications during the life cycle of a charitable trust, starting from incorporation, registration, maintenance of books of account, scheme of taxation, computation of income, filing of the income-tax return, audit report, cancellation of registration, forfeiture of exemption, etc. It contains an extensive discussion of the provisions of the Income-tax Act, tutorials and guides on filing various forms under the Act.

This book is an essential resource for anyone interested in the legal landscape surrounding trusts & NGOs, containing a comprehensive collection of landmark rulings on all controversial issues.

The Present Publication is the 4th Edition and has been amended by the Finance Act 2023. This book is authored by Dr Manoj Fogla, CA Suresh Kumar Kejriwal & CA Tarun Kumar Madaan, with the following noteworthy features:

[Clear & Accessible Language] is followed throughout this book
[Analysis & Impact of Amendments] by the Finance Act 2023
[Exhaustive Coverage of the Registration & Approval Process] under the following Sections:

Section 12AB
Section 10(23C)
Section 80G

[Explanation to the Scheme of Taxation & Computation of Income] of NGOs
[Practical Guide] for the following:

Filing Registration Application in Form No. 10A and Form No. 10AB
Filing of Statements of Donations in Form No. 10BD
Filing of Audit Reports in Form 10B and Form 10BB

[Flowcharts & Illustrations] explaining the law relating to the taxation of NGOs
[Landmark Rulings] on all controversial issues
[Tabular Overview of Compliances] has been provided in this book
[Impact Analysis of Supreme Court Rulings] in the case of New Noble Educational Society [2022] 143 taxmann.com 276 (SC) and Ahmedabad Urban Development Authority [2022] 144 taxmann.com 78 (SC)

The detailed contents of the book are as follows:

Introduction and Legal Framework of NGOs in India
Meaning of Charitable Purpose
Religious & Partly Religious Trust
Amendment of Trust Deed
Registration Scheme under Section 12AB
Registration of Trust Formed without an Instrument
Practical Guide to Registration under Section 12AB
Conditions for claiming exemption under Sections 11 and 12
Scope of Income under Section 11
Application of Income
Scheme of Taxation and Computation of Income
Corpus Donation
Inter-charity Donations
Project Grants whether Income
Implications of Section 2(24)(xviii) on Grant and Corpus Donation
Treatment of Donations in Kind
Treatment of Capital Gains
Treatment of Depreciation
Business Activity under Section 2(15)
Incidental Business under section 11(4A) and Business held as Trust Property under Section 11(4)
Options available for accumulation of Income
Specified Modes of Investments or Deposits under section 11(5)
Set-off & carry forward of past deficit
Source of Application of Income
Anonymous Donations
Penal Taxation of NGOs
Cancellation of Registration
Tax on Accreted Income of NGOs
Taxation when Registration Status is Lost
Approval under Section 80G
Practical Guide to Approval under Section 80G
Practical Guide to Furnish Statement of Donations in Form 10BD
Tax Implication of CSR Expenditure
International Activities of NGOs Outside India
Maintenance of Books of Account
Requirement of Audit under Section 12A
Practical Guide to Upload Audit Report in Form 10BB
Practical Guide to Upload Audit Report in Form 10B
Requirement to Submit ITR under section 12A
Practical Guide to File Form ITR-7
Forfeiture of various Incomes under Section 13
Forfeiture – Charitable activity for a particular religious community or caste
Forfeiture – Benefit to Interested Person
Forfeiture – Violation Regarding Investment under Section 13(1)(d)
Forfeiture – Investment in Section 8 Company and Incubatee Companies
Overview and Fundamental Concepts of Exemption Scheme under Section 10(23C)
Government Funded and up to INR 5 crore Annual Receipt Institutions
Exemptions and Conditions for Approval under Section 10(23C)
Approval and Cancellation under section 10(23C)
Practical Guide to Approval under section 10(23C)
Tabular Overview of Compliances under Section 10(23C)
Comparative Analysis under Sections 11 & 10(23C)
Mutual Societies
Exemption to Institutions notified under section 10(46) and 10(46A)