Income of charitable trusts

A Trust is paying salary to the principal of its school, but the principal donats his full salary in trust account as donation.

My question is whether I treat salary as expenses of the trust & donation received from principal as donation income or i treat it as nigther income nor expense of the trust.

Kindly Advice.

Thanks in Advance.

Yes, It is an expense of the trust and also income of the trust. Claim expense as application of Income and 15% of the donated amount as exemption from tax. Please search for case laws on the same.

Treat salary as expense and donation received as income of the trust 

Spend 85 % of your net income for the purpose for which,trust is formed and be exempted from tax