CA NeWs Beta*: What is meant by accumulation of funds by trusts?

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Wednesday, September 14, 2011

What is meant by accumulation of funds by trusts?

Trusts have an option of accumulating (setting apart), some of the funds received from the voluntary contributions, in every previous year, for certain purposes.

The tax advantage is that the part of the contributions so set apart for the accumulation shall never be considered as the income for the previous year; accordingly, the expandable amount for the charitable purposes shall be reduced.

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