Q & A:what are the Benefits u/s 35 (1) (ii) to both donor

[KIRTI TULSYAN]

QUERY
Dear All ,
  
Can someone please throw some light on this :
A charitable religious trust running hospitals , educational 
institutions is to receive funds from a  company for  its hospital. 
The company wants to give the funds / donation u/ s 35 (1) (ii) 
and not under section 80 G . Will be really grateful if someone  
can  enumerate the benefits that will arise u/ s 35 (1)(ii) to the 
donor and to the donee .     Is there any site which I can look up 
and get some additional information onthis section ??

Thanks in advance,
CA Madhumita Ghose

REPLY 1

Dear Madam

Kindly go through the provision of Income Tax Act. According to Sec 35
(1) (ii) .The company is entitled 175% of the amount paid to the
charitable trust for its hospital provided the trust/hospital's
objective is scientific research and it is an approved institution and
is specified in the Official Gazzette . So first please ask the Trust
to apply and get its name in the Gazette notification.

Regards

CA Asit Kr Mondal
M Com, ACA, AICWA
Gujarat, Anand

REPLY 2

 

Under section 35(1(ii), the company can claim weighted deduction of 1.75 times (From AY 2011-12) the actual amount of donation provided the charitable trust is notified as an approved association or institution by the Central Government in the official gazette on the basis of its application in Form No-3CF.

On the other hand, the approved association/institution can claim exemption of the donation as mentioned above u/s 10(21) provided the said donee uses or accumulates the donation received for the purpose of scientific research interms of section 11. Further in order to eligible for such exemption, annexure to Form 3CF has to be filed also to the Central Government.
Regards
CA Dibyendu Nandi FCA, DISA
Proprietor
D Nandi & Co
Chartered Accountants

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Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


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