Suraj S (Audit Executive) (335 Points)
03 June 2011Suppose a charitable trust accumulates its excess income in a year under section 11(2) for 5 years.
In the next year it utilises this amount for the purpose for which the amount was accumulated. Should this amount so accumulated be also considered as income received by the trust in the year for calculating 85%????
Itz urgent.....someone plzzz rply......thanks in advance
Regards,
Suraj.S
Maneet Puri
(student)
(71 Points)
Replied 04 June 2011
No , it will not be considered as income of the year in which such sum is actually utilised.
But such amount shall not be taken again as application of income in the year such sum was utilised.
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 04 June 2011
No, acumulated amount cannot be considered as current year profit
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