CA NeWs Beta*: How does a trust or institution create a Corpus?

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Wednesday, September 14, 2011

How does a trust or institution create a Corpus?

Before the funds from any donor are received towards the corpus, it is advised that the Trust should provide for the creation of a corpus funds in its Memorandum. It may be noted that in case the trust wishes to create a corpus out of the surplus funds available during the financial year, this can be achieved by applying to the concerned Assessing officer within the time of filing of its return.

It is to be noted that the donor should specifically mention that the funds so donated by him are towards the corpus of the funds.

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