A charitable trust is in receipt of FD Interest only of Rs 400000. It has donated 20% of same to needy individuals? will it get exemption us 11 even if it has not applied 85% of its income. Is there a way to save tax other then by means of accumulation?
1 Replies
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 03 July 2015
Hi,
The trust gets exemption from taxes only if it gets registered per Income Tax Act. 85% accumulation is used only for future utilisation as it can not be for tax savings.
If u can buy some capital assests, that even can be said as utlisaiton wherein u can creat assets in place of excess cash to save from taxes.
Thanks,
Suri
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