Trust-accumulation of income

This query is : Resolved

(Querist)
Follow

31 July 2012 Sir,

For a trust or instituiton, 85% of the incoem has to be applied for the obejects of the trust. If there is shortfall in application, then form 10 has to be submitted.

The total income of the trust 'A' for the financial year 2011-12 is Rs 10 lakhs. 85% of the above is Rs Rs 8.5 lakhs. Rs 8 lakhs is utlised for the purpose of object before 31st March 2012. The balance Rs 50,000 is also used for the objects of trust on July 2012.

Now whether form 10 should be filed to claim exemption u/s 10(23) (c) (vi)...

Please help

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

31 July 2012 Form No 10 is required to be submitted , when the amount has not been utilised during the previous year. The Reference to the due date of filing of return is in regard to filing of the Form No 10.
.
It can not be construed that expenditure incurred prior to due date of return filing or July 2012, will be deductible as application without filing Form No 10.
.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

02 August 2012 Yes. file the form. there is no any provision like 43B. Before due date...etc. Even income tax returns do not understand event occurring after balance sheet date etc.

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