Trust audit-- under income tax provisons
This query is : Open
09 February 2011
Dear sir, please guide regarding the provision of Trust, which is accumulating more than 15% of its receipt by taking permission of AO in form 10. whether the trust is compulsorily required to make investment in the scheme specified in sec 11(5) all the money accumulated, despite of its construction work going on. For eg. the accumulated sum is 4cr. for march 10 and expense incurred for the purpose is 1 cr.??? whether 3cr. will be treated its income before the expiry of specified purpose if not utilized!
10 February 2011
Shreepal,
As per the provisions of IT Act, if any trust accumulating the surplus for >15% of its receipts to future years, then it has to make an application in Form 10 to its AO before the end of FY or atleast along with Tax Return by declaring the purpose of the investment. if you have made an advance payment t/w construction, that will be treated as utilized for the purpose of trust. Balance you will have deposit in the prescribed investment and intimate to your AO and it has to be utilized before the expiry of the period.
Other members can comment on this?
As per the provisions of IT Act, if any trust accumulating the surplus for >15% of its receipts to future years, then it has to make an application in Form 10 to its AO before the end of FY or atleast along with Tax Return by declaring the purpose of the investment. if you have made an advance payment t/w construction, that will be treated as utilized for the purpose of trust. Balance you will have deposit in the prescribed investment and intimate to your AO and it has to be utilized before the expiry of the period.
Other members can comment on this?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- EPF FULL & FINAL RULES IN 2026
- Management System (IMS)
- Condonation . E-Verification of last year return .
- Rental income gst and it purpose
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Eway bill generation from place other than registeted
- FTS Taxable under 115A
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
