Taxation of charitable trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 suppose my Charitable organisation is receiving a sum of rs. 29,03,531/- (including grants & donations) and the amount spent is rs. 16,24,892/- then the taxable income will be Rs. 12,78,639/-
How to proceed further from taxation point of view? How to tax this Charitable organisation?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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04 September 2013 Total Receipts as per Income & Expenditure A/c
Less : Depreciation

Less : 15% permitted Accumulation of net above after depreciation
Income to be applied
Less: Amounts spent/applied towards charitable

Add : Amount spent for acquisition of fixed
Total amount spent/applied during the year
Restricted to available surplus

Taxable income

Provided the Charitable Trust can claim full deduction on the net taxable Income if the said income is utilized for the charitable purpose in the same subsequent year...

Note: 15% permitted Accumulation is permitted upto turnover 25 lacs only...

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Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 So i will not get 15% exemption as my income is more than 25 lacs

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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04 September 2013 You can claim full deduction on the net taxable Income if the said income is utilized for the charitable purpose in the same subsequent year...

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 Okay Thank You