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Charitable trust tax

CA. Umesh kumar (ca.umesh11@gmail.com) (1465 Points)

27 June 2016

a trust fails to apply 85 % of receipt towards charitable purposes and opted u/s 11 (2) to carry forward to be expendded in next year, if even in next year not expended, then taxability??

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Shishir Nayak ((Expert)) (369 Points)
Replied 27 June 2016

The Income can be accumulated till 5 years and trust have to spend within 5 Years, Application in F. No. 10 to be made specifying purpose for accumulation of income for period of 5 years. .::::::::::::::::::::::::::::::: If income not spent within stipulated time, for the purpose of accumulation, deemed to be income of the previous year immediately following period of accumulation and will be taxed @ 30% .:::::::::::::::::::::::::: Note: For trust there is a different method to calculation of Taxable amount.