Frequently Asked Questions on the Income-Tax Act, 1961
  
  
  
  
  
  
  
  
  
  
  
Q11 : Whether 100% of the income (receipts) during a particular year is to be utilised in that same year or whether it can be accumulated ? If so under what circumstances and to what extent ?
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Q25 : Define Corpus Fund.Whether Corpus Fund can be collected in a box written and marked"Corpus Donation" ?
 

Q26 : Is there any tax liability for a Voluntary Organisation which is not registered u/s 12A and

i)    Its receipt are less than minimum taxable limit.
ii)    Its net income is less than minimum taxable limit.
iii)   If there is only corpus fund donation.

 

Q27 : Whether under the scope of Article 371 A of the "Constitution of India" Charitable Voluntary Organization or trust or any association of person in North East area would be outside the purview of Income tax Act and accordingly such charitable body would be exempt from income-tax provisions ?

 

Q28 : Whether loans can be given by trust.

i) To staff (to what extent).
ii) To students for study.
iii) To undertake R & D programme of general nature or specific nature.
iv) To another trust.

a) Would any of the above loan in violation of investment of funds under Income Tax Act, which could affect its registration ?

b) What would be the treatment in accounts at the time of payment or receiving back of the loan amount ? Whether it should be shown in the balance sheet as an asset in all the above cases ?