30 March 2010
Public charitable trusts are required to apply at least 85% of their income in a year towards public or charitable purposes.
Is capital expense (purchase of computer) considered as application of income for this purpose?
Whether advance paid for purchase of asset considered as application of income for this purpose? For eg, Trust pays advance of full amount for purchase of asset on 30/03/2010 , however the asset is installed on 10/04/2010, will this advance be considered as application of income and included in calculating the 85% ?amount.?
31 March 2010
Thanks a lot for your reply. Had another query in relation to this..
What are the implication if in a year 85% of the proceeds are not applied for charitable purposes? Can the unutilised balnce be carried forward to the next year without being taxed. Would highly appreciate if you could quote the section as well.....
CAclubindia
