The audit would have been just over and some of the Treasurers may be settling down in their normal work and some others may be trying to grapple with the unpleasant outcome and demands of the audit. Perhaps the latter ones, especially those who are new to the field, may be at a loss too. Here are some guidelines for those in need.
- Legal Compliances
In view of the statutory requirements of the Income Tax provisions, it is important that we pay attention to the following:
- For any donation to other trusts, ensure that the objects of both trusts match and that both are registered under 12AB.
- Ensure that there is no mutual donation between the two trusts.
- All donation receipts are to be accompanied with a letter of donation, and in case of corpus donation, with the explicit mention of the same.
- Avoid cash transactions as much as possible.
- Ensure that there is no cash donation receipt or payment beyond Rs 9,000.
- No cash donation of more than Rs 2,000 for 80G benefit.
- No cash expenditure of more than Rs 2,000 from FC funds.
- No FC funds to be transferred to anyone. Maintain the FC funds & FC accounts separately.
- Follow the TDS norms of deducting the required 1% or 2% (if a contractor’s single bill is of Rs 30,000 or more and multiple bills aggregating to Rs 1 lakhs) or 10% (to a professional’s bill(s) amounts to Rs 30,000 or more) as the case may be and depositing the same in the Government account before the 7th of the following month.
Fr Alex G SJ
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