23 September 2019
One trust having registration under 12A & 80G of IT Act has excess of income over expenditure which is more than 15% of the gross receipts. Excess income was utilized to repay the unsecured loans pertaining to the period prior to granting permission of 12A & 80G. in such a case surplus income could not be invested as mentioned u/s 11(5) and consequently deduction u/s 11(2) could not be claimed. so whether trust need to pay the tax on surplus amount ???
CAclubindia
