13 June 2016
I have a doubt regarding taxation of Charitable Trust. A charitable trust registered u/s 12AA has claimed certain expenses as application of Income by creating provision in the past. The expenses has not been paid till date. Now the trust is insisting that they can write back the amount and claim expemtion u/s 11. Please guide as whether the amount (if written back) would be taxable in the hands of trust or they can claim exemption u/s 11 against such amount.
13 June 2016
SIr if they write back the amount in Income & Expenditure Account, whether it would be taxable as they must have already claimed exemption u/s 11 in the past.
13 June 2016
Creating provision is not application of income. You can only carry forward for application in future by depositing the amount in FDs and seek permission from AO for such carry over.
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