| Question And Answer | |
|---|---|
| Subject: | VOLUNTARY CONTRIBUTIONS RECEIVED BY A TRUST CAN BE UTILISED FOR THE PURCHASE OF FIXED ASSETS |
| Category: | Income-Tax |
| Querist: | GOPAL S |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | charitable trust, Trust, voluntary contribution |
| Date: | October 6, 2023 |
SIR,
My doubt is if The Trust Registered U/S 11 and 12 of Income Tax Act got the voluntary contributions from public and utilized for the purchase of the fixed assets for the trust does it treat application of income u/s 11 of Income Tax or not and otherwise shall we show it as a corpus donations please clarify and Trust having 12 A Registration when 85% funds utilized from the Gross Receipts for development remaining 15% can we carry forward in cash or bank form please clarify.
Thanking you sir.
Voluntary contributions are deemed to be income of the trust. Hence the same can be applied for the benefit of the trust including purchase of capital assets.
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