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Income Tax - Frequently Asked Questions (FAQs) |
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FAQs on charitable or religious trusts |
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What is the provision for the accumulation of income? |
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Ans. An organisation can accumulate 15 per cent of its income indefinitely. The amount so accumulated by the trust shall be utilised for the charitable and religious purposes for which it has been created. Until its utilisation, the amount shall be invested in the statutory forms as specified in Section 11(5). |
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