17 August 2022
There is a Trust whose Corpus is around 1.42 Cr. how can trust use this Corpus fund for charitable activity in future years Like Capital Expenditure or Revenue Expenditure? is Charitable Trust require to take Permission from the Registrar of Trust or From Income Tax for utilisation of Corpus. what is the Procedure to utilise this Corpus fund for Capital Expenditure & Revenue Expenditure. Please explain me in details
17 August 2022
Corpus donations received up to 31 March 2021 are not required to be statutorily invested and can be used in any manner whatsoever for the objects of the trust.
17 August 2022
what about Corpus donation received after 31.03.2021. i know we can invest in certain MF & FD but can we use this in object of Trust or use for Capital Expenditure? is any Special Permission required from any Authority for utilisation of Corpus Donation?
18 August 2022
Some of the key features of the proposed changes are:
♦ Corpus funds should be earmarked and invested separately. It should not be mixed with other general/ non-corpus funds. ♦ Investment condition applies only in respect of corpus contributions which are claimed as tax-exempt. Corpus created at the time of formation of the institution or out of basic accumulation, anonymous donations, etc. would remain outside the purview of this. ♦ Corpus contribution could be freely utilized by organizations for their incidental business activities, operational expenses, etc. so far. However, going forward, they may have limited flexibility in using corpus donations. ♦ Corpus donations utilized towards the objects can be considered as the tax-deductible applications only in the year of re-investment in the corpus. ♦ Such funds will no longer be available as a part of free cash. Means such funds can not be held as cash in hand in the institutions. ♦ Investment in immovable property out of such corpus contribution is one of the permissible modes of investment provided the asset is used only for the advancement of charitable or religious objectives of the institution. ♦ Any shortfall in investments out of the current corpus donations would be fully taxable. The advantage of tax exemption on minimum utilization (as applicable to other voluntary contributions) is not available to such corpus contributions. These changes will affect corpus donations received after 1 April 2021.
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