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Charitable trust

Brahma nanda Agrawal (KOLKATA) (331 Points)

19 January 2016

Dear Sir, I have a charitable institution, and received contribution towards corpus specifically mention amounted to RS 10,00,000. I have not received any voluntary contribution upto the end of financial year except the above and i have no other income also. I am donating Rs 7,90,000 for charitable purpose using corpus fund. Now i am going to file ITR - 7. Kindly consider my query and make me fearless that where i have to show the contribution received towards corpus fund and the expenses (Donation for charitable purpose) made by me. i will grateful to you forever. Thanking you Brahma nanda Agrawal (7059758724)

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Z ( ) (2960 Points)
Replied 19 January 2016

Although by virtue of S.11(1)(d) , which says " income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution.", the said sum of 10 Lacs wont be included in the taxable income, but however if the purpose for which the donation was given was not satisfied then there can be issues.

Using the money which was specifically given with direction to use in a certain manner was the intention of the donor and the donar trusted the donee. By not doing so , the institution has breached the trust and hence there will be consequences by virute of Indian Trusts Act, 1882

Donation, in this case , if it was not specifically for further donation tantamounts to breach of trust.