Query with regard to the Charitable trusts/society registered u/s 12AB/12AA
One of the registered trusts has donated some amount to another trust which is registered u/s 12AB/12AA during the FY 2022-23. This amount donated is out of accumulated amount u/s 11(2) of the previous years (accumulation of FY2021-22 & prior).
My queries in this regard are as under:
1. Does this transaction attract non-compliance of income tax u/s 11(3)(d)?
2. Is this transaction become taxable @ 30% section 115I(2) Explanation(b) ? If yes, from which funds these tax are required to be paid?
3. Can this amount donated to another trust (having same object) be treated as 'applied to purposes of trust being charitable or religious purposes'.
Section 11(3)
(3) Any income referred to in sub-section (2) which—
(a) is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be accumulated or set apart for application thereto, or
(b) ceases to remain invested or deposited in any of the forms or modes specified in sub-section (5), or
(c) is not utilised for the purpose for which it is so accumulated or set apart during the period referred to in clause (a) of that sub-section 72[or in the year immediately following the expiry thereof]*,
(d) is credited or paid to any trust or institution registered under section 12AA 73[or section 12AB] or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10,
shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or credited or paid or, as the case may be, of the previous year immediately following the expiry of the period aforesaid.
Vikas Goyal
9873515356
CAclubindia
