> Sidharth, what is 35AC? I am naïve insofar as income tax is concerned.
Dear Rakesh, Like you I too am no expert in law. So put it crudely NGOs/Corporates enjoying 35AC exemptions can receive donation that is 100% tax free. Unlike 80G, which applies to Individuals only that too with a 50% tax break, 35AC applies to Corporate Bodies & 100% Tax exemption. So many corporate bodies themselves too go for it and get 100 exemption for an obscure project. Imagine the possibilities. Get 35AC and keep all the profits. NO TAX. Political patronage plays a big role here. Here's a typical example of 35AC exemption Plz note the amount involved, mostly in crores. Some of them are from Delhi too. http://tinyurl.com/mjfvax Google search on 35AC notifications. http://tinyurl.com/npavrd Some of the links given below may help you. http://tinyurl.com/ldu96z http://tinyurl.com/nu8gc8 http://tinyurl.com/nxsakg
