NON PROFIT ORGANIZATION

100C. Tax credit for certain persons. – The income of Non-profit organizations, trusts or welfare institutions, as mentioned in sub-section (2) shall be allowed a tax credit equal to one hundred per cent of the tax payable, including minimum tax and final taxes payable under any of the provisions of this Ordinance, subject to the following conditions, namely:-
(a) return has been filed;
(b) tax required to be deducted or collected has been deducted or collected and paid;
(c) withholding tax statements for the immediately preceding tax year have been filed;
(d) the administrative and management expenditure does not exceed 15% of the total receipts: “Provided that clause (d) shall not apply to a non-profit organization, if—
• charitable and welfare activities of the non-profit organization have commenced for the first
time within last three years; and
• total receipts of the non-profit organization during the tax year are less than one hundred million Rupees”
(e) approval of Commissioner has been obtained as per the requirement of clause (36) of section 2: Provided that this clause shall take effect from the first day of July, 2020; and
(f) none of the assets of trusts or welfare institutions confers, or may confer, a private benefit to the donors or family, children or author of the trust or his descendants or the maker of the institution or to any other person:
Provided that where such private benefit is conferred, the amount of such benefit shall be added to the income of the donor:

“non-profit organization” means any person other than an individual, which is -

(a) established for religious, educational, charitable, welfare or development purposes, or for the promotion of an amateur sport;

(b) formed and registered under any law as a non-profit organization;

(c) approved by the Commissioner for specified period, on an application made by such person in the prescribed form and manner, accompanied by the prescribed documents and, on requisition, such other documents as may be required by the Commissioner; and none of the assets of such person confers, or may confer, a private benefit to any other person.