Friends, I will be thankful for any answers on my query.
Assume that there is a Charitable Trust with due registration with all the authorities. Now, in three preceeding years in a row, the Trust has income of GROSS income of 15 / 18 / 21 lacs respectively. The trustees have under some mistaken belief, not spent any sum on the Objects of the Trust. At the same time, the Trust's income has been spent on other puroposes to the extent of 10 / 11 / 18 lacs respectively. The question is whether there will be tax liability because 15 / 18 / 21 lacs are NOT put to use for charitable purpose. If yes, how much exemption will be available u/s 11(1)(a)
CAclubindia
