If in an assessment year, a chartiable trust have losses, can it forward it to the next year and set off??????????/
3 Replies
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 18 July 2009
Mr.Ramanujam R
The income assessment of a charitable trust is dealt in section 11 of the Income-tax Act, 1961.
Section 11. Income from property held for charitable and religius purposes.
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 18 July 2009
As per the provisions of the section the income of the trust must be applied to charitable purposes to the extent of 85% of the income earned in the previous year to avail exemption.
In case if there is excess application than the income earned it cannot be called a loss. It will be treated as excess application only. The excess application may be out of the borrowed funds or from the specific funds of the trust.
When there is no loss carry forward of such loss does not arise.
Best Wishes
Sathikonda
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