Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Balance in corpus fund what it means

S.S.Aravindhan (chartered Accountant) (78 Points)

07 October 2015

The trust received 139 (9) notice ask to fill schedule J Balance in corpus fund and non corpus fund.

The trust has 12,00,000 as General fund in which 10,00,000 represent corpus fund and 2,00,000 represent non corpus fund of 15% accumulation after spending 85%. Total 12,00,000 is in form of building furniture and some amount in SB a/c.There is no investment u/s 11 (5) since there is no balance fund to invest.

Now please any one tell what to show under Balance in corpus fund and non corpusfund ? Is it zero for both or 10 lakhs and 2 Lakhs respectively

Reply
Follow
Share

3 Replies

K NANDINI (ARTICLE CLERK) (50 Points)
Replied 08 October 2015

Dear Sir

I too has the same question sent to members. It was replied :

corpus fund represents the total of corpus donations received.

Non-corpus fund represents the balance of accumulations beyond 15%, i.e. if in a year, the trust is unable to spend 85% of income derived from property held under trust, this should be invested in the modes specified u/s.11(5).

However, one of our client, who has received the notice u/s.139(9), has filled up the particulars in scheduleJ

the assessing officer has again sent back the same notice and asking them to fill up the schedule J.

We are left without any information as to what is the intention of the officer.

Regards

K.Nandini