Taxation of trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2012 A trust has surplus of more than 15% of its Collection for the year 2011-12.
But it has deficits (excess of expenditure over income) in the preceding 2 years.
1) Can the deficit of earlier years be set-off against the surplus in the current year.
Or should the trust pay tax on excess over 15% in the current year.
2) If the surplus over 15 % is to be accumulated and exemption claimed what would be the procedure?

CA Navin Jain

CA Navin Jain (Expert)
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13 September 2012 yes you can setoff it.

CA Amit Rajput

CA Amit Rajput (Expert)
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13 September 2012 If the surplus over 15 % is to be accumulated and exemption claimed than declaration should be given for utilisation of 15% with in specified period required under law.

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