wh is voluntry/corpus donation

wha is the difference between corpus donation & voluntry donation recd. by a Trust.


What will be the treatment of the same


can a tust give corpus donation to another trust if not why?
Replies (1)
Corpus donations r those that r given to a trust wid a specific direction that they shall form part of corpus (capital) of the trust. They r not included in the income of trust i.e., fully exempted. Voluntary donations r included in income of trust, 15% ad-hoc deduction is available against them and 85% r deductible only if they r actually utilised by trust for specified purposes. However it is subject to an explanation given u/s 11(1) which gives certain relaxation to trust so that they can expend 85% of donations in the year in which they will actually receive them or in immediately suceeding year. (Refer Sec 11(1) for details)

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