Charitable Trust interest income exemption.

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This discussion clarifies the taxability of interest income for charitable trusts. Accrued interest on deposits, even if not yet physically received in the bank account, is generally not considered taxable until it is actually received by the trust. This is because the trust cannot utilise the funds for its charitable objectives until they are in hand.

Krishna

Krishna (Querist)
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26 September 2023 If a trust earned accrued interest on deposits but not received in the bank account. Is that interest taxable for the trust? Since that interest not actually received in the bank trust cannot apply it towards objects of the trust.
Interest income is shown on 26AS.