Corpus fund

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Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 Dear experts, how to convert corpus fund into regular income for the AY2014-15. In previous AY's it has shown as corpus fund.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 November 2013 Corpus Fund can not be treated as regular income. Retain the same as corpus fund only.
.
The income earned from the fund can be treated as regular income and can be utilised for running the trust.

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 Now i need to close my trust. What treatment should be given for corpus fund.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 If there is no restriction placed by any donor on any sum forming part of the corpus fund, then you can simply use the said money for donation to charitable organizations and refund the funds given on earmarked conditions to the donors.

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 Sry sir i cant get you claerly. I am the trustee and i have not placed any such restriction. how to close the trust. what treatment can be given for corpus fund and advance for construction in balance sheet

Querist : Anonymous

Querist : Anonymous (Querist)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 is it a charitable trust?

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 no its a memorial trust

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 sir my question is that whether it is charitable or private?

If it is a charitable trust, the excess funds after meeting the liabilities need to be given to any other NGO with charitable objectives.

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 no no its a private one. what to deal with corpus fund and capital asset in balance sheet at the time of closure

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 no no its a private one. what to deal with corpus fund and capital asset in balance sheet at the time of closure

Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 no no its a private one. what to deal with corpus fund and capital asset in balance sheet at the time of closure

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Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2013 the temple is not the asset of the trust, we just gave money for building it. bt it has been shown as corpus fund in the liability side and advance for construction of temple in asset side.

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2013 sir plz reply me

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 November 2013 so there is no asset in the books of the trust except for the advance from temple?

Second question, assuming that you don't own the temple, then who does? under whose name the temple is being constructed?

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2013 yes there is no asset in the books except advance. and temple is private parties temple and we are just building a part in it

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2013 yes there is no asset in the books except advance. and temple is private parties temple and we are just building a part in it