Corporate law,Trust and society
Corporates want to donate in our organisation. What all document should we checked legally?
We are an NGO and 2-3 corporate want to donate 2 to 5 crores in our NGO. We want to know what all documents should we ask them for and reasons why they want to donate such huge amount and what all taxes they are liable to pay?
By  Anonymous  |  15 Apr 2016  |  Upvotes: 0  | 

1 Answer(s)

Rashi Gahlaut

In all probability the corporates want to make such donations as part of their CSR requirements. At the bare minimum, you should verify whether the companies have been duly incorporated, who the directors are, whether the company has been conducting its business and has the necessary funds, and whether the company has authorized the release of funds through a board resolution. If an NGO gets itself registered under section 80G then the person or the organisation making a donation to the NGO will get a deduction of 50% from his/its taxable income. The NGO has to apply in Form No. 10G As per Annexure-29 to the Commissioner of Income Tax for such registration. Normally this approval is granted for 2-3 years. Feel free to get in touch if we could be of any further assistance to you.

Upvotes: 0  |  Downvotes: 0  |  Comments  | 
Login to comment

Consult A Lawyer
Starting INR 750

Draft Your Own Legal Docs
Starting INR 25

Get Quote For My Requirement