Repayment of debt incurred for purposes of trust/loans advanced by educational trusts to students for higher studies - Whether amounts to application of income

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..... l trusts to students for higher studies - Whether amounts to application of income 1 . Section 11 requires 100 per cent of the income of a charitable and religious trust to be applied for religious and charitable purposes to be entitled to the exemption under the said section. Two questions have been considered regarding the application of income : 1. Where a trust incurs a debt for the purp .....

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..... ties carried on for the fulfilment of the objectives of the trust, granting of loans, even if interest-bearing, will amount to the application of income for charitable purposes. As and when the loan is returned to the trust, it will be treated as income of that year. Circular : No. 100 [F. No. 195/1/72-IT(A-I)], dated 24-1-1973. - Circular - Trade Notice - Public Notice - Instructions - Off .....

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