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Trust Partly for Charitable or Religious Purpose and Partly for Other Purposes

No income is exempt of such a trust created after 31-3-62, and income from property under trust, created before that date, held partly for charitable or religious purposes and partly for other purposes is exempt to the extent it is spent for charitable or religious purposes in India. According to section 12, income by way of voluntary contribution received by such a trust or institution is not exempt from income tax. Hence, it is fully taxable. Where, income of such trust or institution is not fully applied to charitable or religious purposes in India, it may be accumulated and set apart for application to such purposes in India. If the income is received towards the close of the previous year, it may be spent in the immediately following previous year. In case income is not received during the previous year it may not loose exemption, if it is spent either in the previous year it is actually received or in the year immediately following such previous year. If it is not spent as per this provision, it may be further accumulated for a maximum period of five years for specified purposes. All other provisions of section 11 in relation to a trust wholly for charitable or religious purposes also apply in this case.


CONTENT : Assessment of Trust

Related Topics.....Assessment of TRUST


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