Why we are asking donor's details?
The geneses of obtaining PAN of donors contributing more than Rs. 50,000 has arisen from the following:
- Section 13(3)(b) of the Act provides that any person who has made contribution more than Rs. 50,000 is said to be a person who has made substantial contribution to the charitable institution.
- Part C of Schedule K of the Income-tax return form (ITR-7) requires the institution to state name, address and PAN of the person who has made substantial contribution to the charitable institution.
Ironically an institution is not obligated by the Act to obtain donor’s PAN, but, is required to mention PAN in the income-tax return form which is prescribed under the same Act!
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