Section 35AC

This query is : Resolved

Sneha (Querist)
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17 November 2010 Hello

I am new to the concept of IT Act. Please advise me with the following query:

A trust is eligible for exemption/deduction u/s 35AC of the IT Act. Now, the trust has received donations for utilising the funds for the eligible schemes. However, it has not incurred any expenditure during the year. How do we treat the funds so received by the Trust?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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20 November 2010 Sec 35Ac is applicable, when the expenditure is incurred during the previous yrear, in your case deduction will not be applicable.

Sneha

Sneha (Querist)
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22 November 2010 Sir,

Thanks for the response. Could you please tell me what would happen to the monies collected by the trust which has not been put to use yet. Will be taxed in anyway?

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