28 July 2007
Public Charitable instt, running educational instt, Donation received with specific direction towards Corpus Fund of trust, can such fund be used for revenue exp such as salary, conveyance, printing, repair & maintenace, etc.,
29 July 2007
The said donation can be used for any of the main objects of the trust. However, as a general practice, the asid sums are either used for capital expenditure or for investments whose income shall aid the trust in carrying out the objects. This is so bacause then the Corpus generally remains intact. Otherwise too a donation may be received for application towards a specific purpose that woul;d not be qualifying for addition to the corpus.
A Donation received with specific direction towards Corpus Fund of trust, can not be as such used for revenue exp such as salary, conveyance, printing, repair & maintenance, etc.,
Also because such funds are mainly used for capital expenditure or specific expenditure and are subject to terms n conditions...
CAclubindia
