16 January 2023
This a charitable trust Registered as a Society and is exempted u/s. 80G(5) of the Income Tax Act, 1961 (the "Act"). An individual wants to give an amount of Rs. 5 Lakh to this trust free of interest. The principal amount has to be repaid to him over a period of time.
The bye laws of the Society permit the Society to accept amounts from outside parties with / without securities.
Queries : 1) Should the amount received by the Society be shown as "Loan" in it's Financials ?
2) Is there any restriction under the Income Tax Act for the Society to accept this loan of Rs. 5 Lakh ?
CAclubindia
