Can a trust give loan to trustees

Jyoti Dubey (13 Points)

30 March 2017  

Hello,

A Trust has received corpus donation wherein donor has instructed the trust to invest the money and ineterst incomne from that fund should be utilized for the object of the trust.

 

Can trust give that amount as loan to trustees on which it is planning to charge 12% interest.

 

Is this allowed?? Will it attract provisions of Sec 13(1)(c)