Trust Accounting
This query is : Resolved
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PANKIL GANDHI
(Querist)
22 May 2021
Please guide me on following point.
Trust has taken loan for one of the objects of trust. Now trust repaying the loan .how to show repayment of priciple amount of loan as application of income?(Sec 11(1)).Income & expenditure account showing surplus by amount of principle repayment of loan.
Trust has taken loan for one of the objects of trust. Now trust repaying the loan .how to show repayment of priciple amount of loan as application of income?(Sec 11(1)).Income & expenditure account showing surplus by amount of principle repayment of loan.
CA R SEETHARAMAN
(Expert)
22 May 2021
While filling ITR 7 reduce the surplus against repayment of loan. Show nil income in such a case.
PANKIL GANDHI
(Querist)
22 May 2021
THANK YOU SIR FOR YOUR REPLY....BUT THEN THERE IS ALWAYS MIS MATCH BETWEEN INCOME EXPENDITURE SUBMITTED TO TRUST OFFICE & ITR 7.AS WE CAN NOT SHOW REPAYMENT OF LOAN IN INCOME EXPENDITURE ACCOUNT.
CA R SEETHARAMAN
(Expert)
22 May 2021
Yes, it will be there it can't be avoided.
In tax calculations account profit and income tax profit different it can't be avoided.
In tax calculations account profit and income tax profit different it can't be avoided.
PANKIL GANDHI
(Querist)
22 May 2021
okkk... thank you very much sir....
CA R SEETHARAMAN
(Expert)
22 May 2021
The spending out of loan should not have been treated as application earlier.
In such a case only loan repayment is allowed as application.
In such a case only loan repayment is allowed as application.
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