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cpav1I13
Volume - 13
June 2021

Anonymous Donation is to be taxed at higher rates 

Any donations received by organizations registered under Section 12A or 10 (23C), where prescribed records pertaining to the identity of the donors indicating the name and address are not maintained, are considered as anonymous donations.

As per the provisions of section 115BBC, such donations shall be taxable in the hands of recipient organization at the rate of 30% with the following 2 principle exceptions:
• Wholly religious organization is not liable to tax on anonymous donations
• Other organization can receive donations upto Rs. 1,00,000 or 5% of the   total income of the   organization, whichever is higher, without payment of such taxes

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