Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
25% carry over of fund for NPOs
01-05-2006, 08:30 PM,
25% carry over of fund for NPOs
In reference to the rule 213 (1) (i) of ITR 2002. I would like to understand practical implementation of this rule which is reproduced from the ITR 2001for your convenience.

"for restricting the moneys validly set apart or not utilised upto twenty-five per cent of the income including surplus worked out of the amount from donations made to it. In case, accounting period closes within three months of the commencement of activities, the Commissioner can relax this condition upto fifty per cent of the amount
Provided that a certificate to the effect that the amounts so in excess of the said limit have been invested in Government securities or in the scheduled banks including NIT Units or any mutual funds registered with State Bank of Pakistan or Securities Exchange Commission of Pakistan is produced
Provided further that such deposit or investment in or through the scheduled banks shall not exceed one-third of the surplus at the end of the year."

Question 1
Suppose there is an income of Rs. 15,00,000 and surplus of Rs. 500,000 in the year 2005 while last year (i.e; 2004) carried forward surplus is Rs. 200,000. How much is the investable surplus in this case in the year 2005 and how much to be kept in Scheduled bank? (please if you could elaborate answer with workings)

Question 2
What do we mean by including Surplus worked out of the amount from donations made to it?


Forum Jump:

Users browsing this thread: 1 Guest(s)

Contact Us | Accountancy | Return to Top | | Lite (Archive) Mode | RSS Syndication