NPO-100C

Question 1

What is special about NPO taxation

Answer 1

100% TC/waiver however Surplus fund @ 10%

Question 2

Is there any financial limit for 100c applicability (i.e. 100% TC)? Which and how much? Are there any special cases of waiver?

Answer 2

Admin & Management expenses of NPO < 15% of the total receipts (receipts including other than donations if any like IFB, IFP, etc); Special waiver Start-up within last three years and total receipts < 100 M

Question 3

What if there is private benefit taken by the donor, author/maker

Answer 3

Benefit to be added to Taxable Income

Question 4

What is surplus fund tax? What is special about? When will it be evaluated?

Answer 4

Surplus Fund will be evaluated when 100C is applied; Balance of receipts (all receipts including IFP, IFB, etc) if more than twenty-five percent of the total receipts and are not part of restricted funds. i.e. [Surplus (Total Receipts-Total Spendings) – restricted fund] > 25% x total receipts; [Surplus (total Receipts - total Spendings) – restricted fund] x 10%

Question 5

Can an individual in his capacity as individual be NPO

Answer 5

No (NPO is person other than NPO)