CA KAMAL GARG

Non-Profit Organisatoin’s (NPO) have played a crucial role in development of India. There are various NPOs that work all over India and for a wide range of causes.  The World Bank defines NPO’s as “private organizations that pursue activities to  relieve suffering,  promote the interest of the poor,  protect the environment,  provide basic social services, or  undertake community development.”  NPOs do not work for profit motive and apart from own sources, NPO utilises funds raised through donations. NPOs receiving foreign contributions in India come under the purview of Foreign Contribution Regulation Act, 2010 i.e. FCRA. Corporate Social Responsibility (CSR) is practical way to give back to society and NPOs are the best way to do this. NPOs can be registered in any of the applicable acts as mentioned below, according to the type of organisation chosen to be formed. Major laws and acts applicable to NPO are as follows – Society registered under Societies Registration Act, Central or r

Since September 1, 2019, Banks are required to deduct TDS @ 2% of the aggregate cash withdrawals exceeding Rs. 1 crore during a financial year, from one or more accounts, maintained by a customer.  For this purpose, cash withdrawals under all the bank accounts under your PAN / Aadhaar are aggregated. This is as per Section 194N of the Income-tax Act, 1961. In absence of PAN / Aadhaar, TDS rate is 20%. New changes with effect from 1st July’20: If Income Tax returns are not filed for the preceding 3 Financial Years, for which the time limit for filing return under section 139(1) has expired, then rates of TDS would be as under: TDS at 2 % on aggregate cash withdrawal exceeding Rs 20 lakh to 1 crore, and TDS at 5 % on aggregate cash withdrawal exceeding Rs 1 crore. In all other cases, TDS at 2% would continue as mentioned above. Cash withdrawals from 1st April 2020 onwards would be considered for calculating combined / total cash withdrawal. Here is the list of persons and entities who ar