Are your donation box collections pushing you into a 30% tax bracket?

• When does the 85% rule clock start — grant period or financial year? For a mid-year grant, income application follows the financial year, not the grant period. There's also a sequencing rule for filing Form 9A or Form 10 before ITR-7 that catches many organisations off guard. Read the full clarification
• Cash donations under ₹2,000: the reporting obligations don't disappear when the donor skips the receipt. The ₹2,000 limit for 80G eligibility applies per donor per financial year, Form 10BD is still required, and a separate ₹2 lakh per day ceiling under ITA 2025 carries an equivalent penalty. Read the full clarification
• Donation boxes at public events can quietly tip you into a 30% tax. Anonymous donations are only exempt up to ₹1 lakh or 5% of total donations — whichever is higher. Beyond that, the excess is taxed as specified income under ITA 2025. The forum post covers the legal definition, accounting treatment, and internal controls. Read the full clarification
• Using a trustee's relative's property rent-free? The waived rent still needs to appear in your books. It gets recorded as both in-kind income and rental expenditure, backed by a waiver letter from the landlord. Related-party disclosure and board resolution requirements are also covered. Read the full clarification
• Writing a new trust deed? ITA 2025 has renumbered the sections. Investment clauses, amendment clauses, and 12A/80G references all need updating. A downloadable ITA 1961-to-2025 section navigator is attached to the forum post. Read the full clarification

Have a compliance question? Ask us on our forum or website.

Hope this helps you stay on track this month.

Best wishes,
Team PATTIC