12A status
drk reddy
(Querist) 27 April 2011
This query is : Resolved
Ours is a registered society under AP societies Act and having 12A and 80G exemptions from Income Tax.
We are working for the welfare of animals and providing free medical treatment and free shelter for the disabled and old animals like dogs, cats, cattle, horses, donkeys and wildlife.
query:
1. Shall we treat as NGO under medical relief category.
2. We want to collect medicine cost and fees from the owners of breed dogs. Is it not effect our 12A status. Still we are providing free medical care to the stray ones.
Guest
(Expert) 27 April 2011
Although Sec 12A does not stipulate any such conditions about not to do any business, and also an NGO exclusively engaged in the field of education, medical relief and relief of poor preservation of environment & preservation of monuments can have incidental business activity without any monetary ceiling, BUT since the yearly finance bills introduce changes year after year, if you start charging fee your society can at any time be termed as doing a business for profit and for not using the proceeds for the charity purposes.
So, better start accepting voluntary donations instead of any fixed fee from the owners of the breed dogs.
drk reddy
(Querist) 27 April 2011
Dear sir,
Thank you very much for your reply.
We want to charge fee to cover the expenses and ultimately use the amount for the cause.
Second point might have escaped your attention, i.e. medical relief.
Since we are providing medical care to the animals not for human beings, shall we comes under medical relief or not
soumitra basu
(Expert) 30 April 2011
Nominal fees charged for cover the expenses will not be treated as business in your case. The main purpose is important.
You are also entitle to come under medical relief since there is no mention that medical relief should only be provided to human.
drk reddy
(Querist) 01 May 2011
Thanks for the clarification.
