Salary paid to the trustee, without authorizing the trust deed, whether the same is available as app

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CA. Kasi Reddy Nallappa Reddy

Chartered Accountant

153 Points Joined February 2017

We have paid the salary to the trustee without authorizing the trust deed, whether the same is allowed as application of income. If yes, is there any caselaw which can substantiate the same. If no also please provide if any case law is available.

Thanks in advance

Replies (1)

Nitesh bind

Student CA Final

12692 Points Joined October 2012

I think That would be taken as Application of Income for Trust even if it is not mentioned in trust deed. But it must be in compliance with 40A(2).

Thanks.