A charitable Trust has accumulated Rs.5 lakh in the year 2008-09 for construction of a building for running a School. Form 10 specifying the same filed with ITO. Now it is not feasible for the Trust to build a building and run a School for various reasons. Now please guide us can the Trust use the accumulated amount for construction of a residential houses for letting on rent and that rent can be used for the object of Charitable Trust.
Thanks & Regards, C. Durairaj Manager, Sree Visalam Pallathur-630107
17 May 2013
If the trust is unable to apply the accumulated funds for the purpose for which it is accumulated , the assessing officer may allow application of such funds for other charitable purpose in conformity with the object of the trust. so u can use the fund for construction of residential houses with the permission of a.o. still wait for other experts' reply.
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