Taxation of charitable trust

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2013
Total Donations recd 24,33,802/- (Out of this, Rs.18 lacs donation recd in kind as Mobile school bus)
Less;
15% set apart 3,65,070/-
--------
Available balance 20,68,732/-

Expenditure on Trust Objects 11,31,646/-
---------
Bal positive 9,37,086/-

Tax@30% 2,81,125/- whether this is payable or no need to pay as they have 12A income tax exemption certificate

Just wanted to know from you, can we considered this 18 lacs amt of school bus as corpus fund or other earmarked fund instead of considering it in income to save the tax of Rs. 281,125/-

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

23 January 2013 The donation received in kind is as good as income applied for the purpose of the trust.
So Your trust has applied more than its income. As I know, no tax is leviable in such a situation.
.

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2013 dear sir,

donation recd in kind of 18 lacs, can we considered as its 100% applied to the charitable objects, even though actually we can claim depreciation @ 30%, then remaining 70% also treated as applied income. no tax.