Trust
This query is : Resolved
ARUN KUMAR GARG
(Querist)
20 August 2014
Donation received for purchase of land where it is to be shown in final accounts of the trust . Trust is registered u/s 12AA
CA SUNIL K GARG
(Expert)
20 August 2014
dear sir,
if the donation has been recd with a specific direction that it will form the part of corpus , then it will be capital receipt and will be directly credited to corpus fund. the benefit of receiving the corpus fund is that corpus recpt does not form the part of income (pls refer to sec 12 (1)). moreover application corpus fund is also exempt from sec 11 (2).hence it is better to receive corpus donation for capital expenditure
if the donation has been recd with a specific direction that it will form the part of corpus , then it will be capital receipt and will be directly credited to corpus fund. the benefit of receiving the corpus fund is that corpus recpt does not form the part of income (pls refer to sec 12 (1)). moreover application corpus fund is also exempt from sec 11 (2).hence it is better to receive corpus donation for capital expenditure
CA UMESH DULAL
(Expert)
20 August 2014
agree with Sunil ji
Rupesh Jain
(Expert)
20 August 2014
yes, it Mr sunil is correct . it part of corpus and its show separately and assets purchases against this fund also show as assets.
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