Trust Accounting

This query is : Resolved

PANKIL GANDHI (Querist)
Follow

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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

22 May 2021 While filling ITR 7 reduce the surplus against repayment of loan. Show nil income in such a case.

PANKIL GANDHI

PANKIL GANDHI (Querist)
Follow

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

CA R SEETHARAMAN (Expert)
Follow

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.

PANKIL GANDHI

PANKIL GANDHI (Querist)
Follow

22 May 2021 okkk... thank you very much sir....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

BABUSHANKAR BASAPPA

DURGA TANDEL

R.Prashanth

swaminathan

CA Rahul Patwardhan

Subscribe Now

Trust Accounting

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA