Hey Folks,
Would be very helpful if anybody could shed light on the following queries
Is the subscription amount received by an NGO from its members (not giving any benefits to members and the subscription is like donation) taxable?
What if NGOs gives a voucher in consideration of subscription, which can be redeemed by members from the NGO’s partners like schools or stationery vendors. NGO does not pay anything to the partners and has just entered MOU with partners to provide free education and stationery at discount.
Thanks for your queries
Query 1: Member subscription which is typically periodic contribution as member versus a one time donation will be treated donation. The member may attend meetings, get updates etc but there is nothing pecuniary received in return.
Query 2: Suppose I pay Rs.100 as subscription and get a voucher of Rs.100 which means this subscription is not strictly donation but an exchange transaction. Redeeming this voucher with NGO partners against a money obligation would tantamount to wrongly claiming 80G benefit while making such subscription. Also read Section 80G(5) conditions which get violated because of this arrangement.
Thanks
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