Sowmya.S.Balan (Paid Assistant) (749 Points)
26 August 2011Dear Friends
A trust accept 80 G donation and deposit it as fixed deposit and interest received on FD is utilised for charitable purpose.Whether any problem for nonutilisation of 80 G donation & only interest receipt utilisation. Whether any problem in depositing the 80G donation as fixed deposit. please help me
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 05 September 2011
If the donor any specifications give about the utilisation of donation then u should utilise for that purpose only however for temporarly u can make FDs(like there is time to utilise for the same purpose according to the donor) otherwise it will treated as general donation and will be credited to P&L account. if u r vilot the above then u r liable for nonutilsation of funds according to the donor instruction.
OM SAI SRI SAI JAI JAI SAI
CAclubindia
