Taxation of trust income
Dinesh (F.C.A) (37 Points)
07 February 2016Dinesh (F.C.A) (37 Points)
07 February 2016
ROSHAN
(TAX PRACTITIONER)
(74 Points)
Replied 08 February 2016
Hi,
As you said the donation received of Rs. 4 Lakhs is spent for prasad, which is not the primary objective of the trust. Hence when the objective is not met there is no question of applying the donation as expense.
So the Income of the trust will be total donation receipt, i.e.. 4 Lakhs in your case.
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