🇮🇳India

व्यय प्रतिपूर्ति में धोखाधड़ी

1 verified sources

Definition

Excessive or undocumented reimbursements to board members trigger loss of 12A/12AB tax exemption, converting surplus expenses into taxable income.

Key Findings

  • Financial Impact: ₹10-50 lakhs tax liability per violation + 85% income spend mandate breach
  • Frequency: Per financial year audit failure
  • Root Cause: Manual approval lacks reasonableness benchmarking

Why This Matters

The Pitch: Non-profit organizations in India risk ₹10-50 lakhs in tax liability annually on improper expense reimbursements. Automation of approval verifies reasonableness and prevents exemption revocation.

Affected Stakeholders

Trustees, Board Members, Finance Approvers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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