Is Donation given to a charitable or religious trust eligible for deduction u/s.80G, even though the trust has issued the receipt with the exemption certificate???
11 Replies
Vikas
(CA)
(1135 Points)
Replied 01 July 2011
| Originally posted by : Vikas Vishwakarma | ||
 |
Is Donation given to a charitable or religious trust eligible for deduction u/s.80G, even though the trust has issued the receipt with the exemption certificate??? |
 |
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 01 July 2011
decduction from current year taxable income may be made as per the circular and sectino printed on receipt.
Vikas
(CA)
(1135 Points)
Replied 01 July 2011
But Mr. Sharma, as per Sec.80G(5), the deduction is available for the donation for the income eligilible for Sec.11 & 12 and Sec.12 excludes the donation for Corpus fund as receipt for charitable or religious purpose.
I appreaciate your reply...
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 01 July 2011
mere name of charitable trust does not convey the 80G(5), the purpose is to be mentioned in the receipt, thats why i asked to follow the printed receipt and deductions available.
Vikas
(CA)
(1135 Points)
Replied 01 July 2011
Actually, the receipt contains the purpose as "CORPUS FUND", and contains the exemption no. and the 80G certificate.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 02 July 2011
| Originally posted by : Vikas Vishwakarma | ||
|
|
Actually, the receipt contains the purpose as "CORPUS FUND", and contains the exemption no. and the 80G certificate. |
|
There is something more written with "CORPUS FUND for ............................... "or "......................CORPUS FUND" which is missing in your query,
as the institute issued u receipt with exemption no, means the funds must not be used for their "business" but separate corpus would be formed for specific purpose,
progressive receipts total may be appeared on receipt/ certificate to be used for specific corpus.
Vikas
(CA)
(1135 Points)
Replied 02 July 2011
Mr. Sharma, there is nothing mentioned in the receipt other than "CORPUS FUND"...
My view is that this should be the headache for the trust for keeping the same for the corpus but the donor should be given the benefit of the donation as he has been given the exemption certificate.
But I would like to have a concrete opinion on the same...
Any Reply would be highly appreaciable, friends...
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 02 July 2011
corpus fund is generaly a reserve fund for specific purpuse, it can not be added to principal capital, but can be used in the "purpose as specified in receipt voucher or receipt, and the same is confirmed by incometax department for accepting donations under 80G"
The doner is aware of the facts and the purpose of the fund donated, thats why he donated the funds to the trust, if there is any breach of doner and receipent terms, doner may ask trust, for clarification which is missing in receipt.
Vikas
(CA)
(1135 Points)
Replied 05 July 2011
I think Mr. Sharma, the benefit for the donation should be given to the donor, who knows that he has been given the receipt for the donation and the exemption certificate.
The donation in corpus fund shall be the responsibility of the trust to be taken as corpus.
Thanks Mr. Sharma for the valuable replies...
Karan Ranka
(CA Final)
(67 Points)
Replied 08 June 2012
Sir taking your discussion bit further... Kindly consider the following scenario..
A trust is formed in which the trustee donate Rs. 30 lacs in corpus fund and the said amount is kept by the trus in fixed deposits and the interest earned from the deposits is used for the charitable purpose.
My querry are as following
Will this 30 lacs be taxable to the trust
Will the trusttee get the deduction under section 80G for the amount of 30 lac donated
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