20 August 2014
dear sir, if the donation has been recd with a specific direction that it will form the part of corpus , then it will be capital receipt and will be directly credited to corpus fund. the benefit of receiving the corpus fund is that corpus recpt does not form the part of income (pls refer to sec 12 (1)). moreover application corpus fund is also exempt from sec 11 (2).hence it is better to receive corpus donation for capital expenditure
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