Notification & Circulars

DYK released on Inter-charity donations cannot be made from accumulated funds

Dec 04, 2023 Circulars & Notifications Attachment

Inter-charity donations cannot be made from accumulated funds

As per the Income Tax Act, 1961, once the funds have been accumulated under section  11(2), it can be only utilized for charitable purpose within 5 years directly by the   organization who accumulated it and cannot be transferred to other organizations.

However, if a charitable organization is dissolved, then inter-charity donations from the accumulated funds will be allowed under section 11(2) of Income Tax Act, 1961

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