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 on the provisions of the Income-tax Act, tutorials and guides on the filing of various forms under the Act.

The Present Publication is the 3rd Edition, authored by Dr Manoj Fogla, CA Suresh Kumar Kejriwal & CA Tarun Kumar. This book is amended by the Finance Act 2022 with the following noteworthy features:

• [Analysis & Impact of Amendments] by the Finance Act 2022
• [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 to File Registration Application] in Form No. 10A and Form No. 10AB
• [Guide to Filing of Statements of Donations] in Form No. 10BD
• [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

The detailed contents of the book are as follows:

• Introduction and Legal Framework of NPOs in India
• Meaning of Charitable Purpose
• Religious & Partly Religious Trust (New)
• Amendment of Trust Deed
• New Scheme of Registration under Section 12AB
• Registration under Section 12AB of the Organization 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 Capital Gains
• Depreciation
• Business Activity under Section 2(15)
• Incidental Business and Business held as Trust Property
• Options available for accumulation of Income
• Set-off & carry forward of past deficit
• 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
• Tax Implication of CSR Expenditure
• International Activities of NGOs outside India
• Requirement of Audit under Section 12A
• Practical Guide to upload Audit Report in Form 10B
• Submission of Income-tax Return
• Practical Guide to file Form ITR-7
• Forfeiture of various Incomes under Section 13
• Forfeiture – Charitable activity for a particular community
• Forfeiture – Benefit to Interested Person
• Forfeiture – Violation Regarding Investment under Section 13(1)(d)
• Forfeiture – Investment in Section 8 Company and Incubatee Companies
• Fundamental Concepts 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)
• Tabular Overview of Compliances under Section 10(23C)
• Comparative Analysis under Sections 11 & 10(23C)
• Practical Guide to Approval under Section 10(23C)
• Mutual Societies
• Maintenance of books of accounts