UTILISATION OF 85% APPLICATION OF FUND U/S 11

Dear Sugata,

First of all these are 2 different sections, Sec 12 & Sec 80 G

Sec 12 - Exempts the Income of the Trust registered u/s 12

Whereas Sec 80 G - Donations to trust registered under 80 G are eligible for deductions.

There is no link as such, therefore If a Trust has not been able to utilize 85% of it's receipts then only thing is It might have to pay Tax on the unutilized Receipts based on slabs as applicable to an Individual (Non Senior Citizen & Other than women assessee's).

It's not that in above case the registration under 80 G will be cancelled.