Dear Experts
We are a public charitable Trust NGO category, we receive grants for projects. One of the donor gave a grant for a project Rs. 20 lakhhs for 3 years for whihc we have given 80 G receiot in full
we have spent only 15 lakhs over the period of 3 years, Donor is asking for return of the balance unspent portion.
As we have issued 80 G for full amount and now he is asking for the return of unspent portion of 5 lakhs how to go about this
1) whether we can refuse return of the balance portion since we have also ready given 80 g for full amount in the first year itself
2) or whether there will be any tax implication if we refund the balance amount
Please advice
Reg,
CAclubindia
