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94. Outgoings of a non-profit organisation.
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94. Outgoings of a non-profit organisation.—The amount of outgoings during the financial year for the purpose of computation of the total income shall be the aggregate of—
(a) the amount paid for any expenditure, not being capital expenditure, incurred wholly and exclusively for earning or obtaining any receipts referred to in section 93 ;
(b) the amount paid for any expenditure, incurred for the purposes of carrying out any charitable activity ;
(c) the amount paid for any capital expenditure for the purposes of any business, if the business is incidental to any charitable activity carried on by the non-profit organisation ;
(d) any amount applied outside India, if—
(i) the amount is applied for an activity which tends to promote international welfare in which India is interested ; and
(ii) the non-profit organisation is notified by the Central Government in this behalf ;
(e) any amount which is received during the last month of the financial year and has been deposited on or before the last day of the financial year in a specified deposit account under such deposit account scheme as may be prescribed ; and
(f) any amount accumulated or set apart for carrying on any charitable activity—
(i) to the extent of fifteen per cent. of the total income (before giving effect to the provisions of this clause) or ten per cent. of the gross receipts, whichever is higher ; and
(ii) invested or deposited in the modes specified in section 95, for a period not exceeding three years from the end of the financial year.
Clause 94 provides that for the purpose of computation of the total income, the amount of outgoings during the financial year of a non-profit organisation shall be the aggregate of —
(a) the amount paid for any expenditure other than capital expenditure incurred wholly and exclusively for earning or obtaining any receipts referred to in clause 92 ;
(b) the amount paid for any expenditure, other than capital expenditure, incurred for the purposes of carrying out any charitable activity ;
(c) the amount paid for any capital expenditure for the purposes of any business, if the business is incidental to any charitable activity carried on by the non-profit organisation ;
(d) any amount applied outside India, if the amount is applied for an activity which tends to promote international welfare in which India is interested and the non-profit organisation is notified by the Central Government in this behalf ;
(e) any amount which is received during the last month of the financial year and has been deposited on or before the last day of the financial year in a specified deposit account under such Deposit Account Scheme as may be prescribed ; and
(f) any amount accumulated or set apart for carrying on any charitable activity—
(i) to the extent of fifteen per cent. of the total income (before giving effect to the provisions of this clause) or ten per cent. of the gross receipts, whichever is higher ; and
(ii) invested or deposited in the modes specified in clause 95, for a period not exceeding three years from the end of the financial year.
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