ISLAMABAD: Non-profit organizations are required to provide details of all donations above Rs5,000 in order to avoid cancellation of approval granted by Federal Board of Revenue (FBR).
The sources said that under tax laws, an institutions fund, trust, society or any other non-profit organization established in Pakistan for religious, educational, charitable, welfare or development proposes or for the promotion of an amateur sport shall require approval of the Commissioner of Inland Revenue (CIR) FBR.
Under the law the commissioner has also been authorized to withdraw the approval to NPOs on the basis that the income tax returns were not filed or supported documents have not been provided along with the income tax returns.
The sources said the NPOs are require to declare details of names and addresses of the persons from whom donations, contributions, subscriptions etc. exceeding Rs5,000 have been received during the tax year.
Further, it is also mandatory that statement should contain the names and addresses of donees and beneficiaries etc. to whom payments, services etc. exceeding Rs5,000 have been made during the tax year.
The sources said that the NPOs should provide statement of audited balance sheet and statement of accounts.
Besides, the NPOs are required to provide a detailed performance evaluation report after every three years. “Provided that where such detailed performance evaluation report is not submitted on or before September 30 following every three tax years, the commissioner shall issue a show cause notice for withdrawal of approval to the concerned organization.”
The NPOs are required to keep details of deduction of withholding tax and provide to the FBR as required under Section 165 of the Income Tax Ordinance, 2001.
Further, the names, CNIC/NTN, last income declared, tax year and addresses of the promoters, directors, trustees, president, secretary, treasurer, manager and other office bearers, as the case may be, of the organization and indicating clearly their family relationship with each other.