TRUST QUERY INCOME APPLIED

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This query is : Resolved

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This discussion clarifies that a Public Charitable Trust registered under section 12AA is permitted to accumulate up to 15% of its surplus income. If this 15% is mistakenly omitted from the tax return, the Assessing Officer (AO) is expected to automatically allow this accumulation when finalising the assessment. This applies even if the trust has claimed other surplus amounts set aside under section 11(2).

afreen shaikh

afreen shaikh (Querist)

27 August 2025 Public Charitable TRUST registered u/s12AA is allowed to accumulate surplus amount not exceeding 15%. If this amount by mistake is not claimed in the return even tough amount of income applied, surplus amount set aside u/s 11(2) etc. is claimed. Then A.O. is supposed to allowe this 15% amount atomatically while completing the assessment & determining the assessable income

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 September 2025 Yes. If the trust applied its income accordingly and claimed any surplus set aside under section 11(2), the AO should suo moto grant the 15% accumulation during assessment, even if omitted in the computation sheet or claim.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 September 2025 Good luck....

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