Tribunal Confirms Section 80G Eligibility as Religious Expenditure Stayed Below Five Percent

For CAs

• Advise mixed-purpose entities that Section 80G(5B) requirements are fulfilled if expenditure for religious purposes remains below 5% of total receipts in previous financial years. Segregate religious outlays meticulously from general charitable spends in financial statements during annual financial audits. Track statutory audit disclosures and maintain documentary evidence of receipt thresholds to safeguard institutional registration and donor confidence.

For businesses

• Retain donor deduction eligibility because mixed-purpose entities can incur incidental religious expenses up to a strict ceiling without forfeiting general tax-exempt status or donor benefits. Ensure expenditure for religious purposes stays below 5% of total receipts in previous financial years. Maintain strict mathematical tracking of revenue streams and expenditure classifications across annual financial audits.