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Trust final accounts

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Ankita

Ankita (Querist)

26 March 2016 dear experts, what should be the main points to look for while analysing the balance sheet of a trust

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

26 March 2016 1. While analysing the balance sheet of trust, first of all check nature of receipt. In trust two type of receipts, one is corpus receipt and second is revenue receipt. Corpus receipts don’t form the part of total income u/s 11(1)(d)(2)
2. If amount of application towards the objects of the trust lls below 85%, due to non receipt or any other reason then the trust has to make an application to concerned assessing officer u/s 11(2) of Income Tax Act, 1961.
3. If the application of fund falls below 85% of the total receipt then the accumulation of funds has to be done under the mode specified u/s 11(5) of the Act.
4. Anonymous donation are taxable u/s 115BBC @ 30%.

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