08 March 2012
Dear all, (1) I was accountant for a trust. The trust is collecting donations. It is depositing in bank account. All expenditure incurring from bank account. By 31-03-2012 there will be some balance in bank account. Is the closing balance in bank account is taxable? Please guide me. (2) collection of all donees addresses are mondatory or optional as per act. Please guide me.
09 March 2012
The closing balance in case of trust are not taxable. Further if the amount is taxed as income in the previous years the trust has a spent 85% then it is fully excempted. Further if the amount is a corpus donation then the same is fully excempted.
It is not compulsory to collect the full address, but it would be safe your part to collect as this wont attract qualification from auditors and KYC and AML norms are met with
CAclubindia
