karnav shah (Executive MBA (Criminology) MBA (Finance) Doctorate (Management)) 17 April 2011

Proprietary Firm/ Professional eligible to accept donation?

Hi I have tricky Question.

I run properitor Firm i.e chintaless.com whereas I provide criminal investigation and investigative journalism services. I also write own article in press media as well as online.

I charge consulting fees, fees for the legal research and various investigation charges.

while working in criminology career, i have consult various client whereas i found certain ongoing disputed related to animal slaughtering, domestic violence, internal sensitive disputes. I simply dont charge in such cases and sometime i require fund to support certain belief related to religious, social and educational development.

Having a trust I have an impression that there may be unnecessary interfear from the government or may some people use RTI with no reason to create an issue. The law in place is good but while i consider pitfalls, i want to work smooth and i dont expect charities or donation or fund from everyone however i will have it from internal network but i think it is same as to seek fund from public.

I want to work independetly on the philosophy and speed i could determin without beaurocracy system. I may not want advise from public or government that how shall i use such fund however i also agree to the tranperency to the extent of people who fund me.

Any idea or suggestion? IF i dont have to set up a new thing (trust) instead remain in the same profession what are the possible ways?

looking forward for help.

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3 Replies

Ashok a Kella (Sr Manager) 19 April 2011

yes, you canbut have to include itinto your total income.IT exemption is available to only institute registered for such purpose

karnav shah (Executive MBA (Criminology) MBA (Finance) Doctorate (Management)) 19 April 2011

thanks mr ashok. well if i consider the amount as my income then a person who gives me as donation, what is the corelation?

and if someone gives me as donation, i think he may not claim tax benefit if i am not register institute?

how would i consider something as income when someone entre it as a donation, cross entry mismatch?

i am not clear about the issues so i think if you can help me with it, that would be great.

and what If i have private/family trust of 2 family member? in this case am i still responsible to respond unnecessary question and issues of outsiders (apart from the donar and beneficiary)

Thanks for your help

Ashok a Kella (Sr Manager) 20 April 2011

there is no mismatch. you are not so suppose to match your receipt with someone. sure, he will so in his books as donation butits deduction as expenditure is only issue. It Act defines ,which donation are allowable expenditure under IT Act. Irrespective of itsadmisibility as allowable expenditure, one can give any amount in donation and another can receive the same. If you can manage to show it as capital receipt, than it would not be treated as income in your hand.

ashok