Taxability of Corpus

Dear Dialogue Members,
Greetings from SRRF!!!

We have received following query from Mr. Sudhendu Das of SSDC:

Dear Sir,
Greetings from SSDC!

if  we generate corpus fund in our national account for use any accident or serious cases in future, it will be taxable or not.

waiting for your valuable replay.


Sudhendu Das
Finance Manager
Sundarban Social Development Centre
Vill. – Polerhat, P.O.- Bijoygunj Bazar,
Dist. – South 24 PGS
Pin – 743343
West Bengal, India

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2 Responses to Taxability of Corpus

  1. Subhash Mittal says:

    Dear Sudhendu Das,

    I suggest that you follow following link on SRRF Dialogue where the issue was discussed in great detail. However if you still have any query, we will try to answer the same. rgds

  2. B V Soma Sastry says:

    Dear Sudhendu,

    Greetings from Hyderabad!

    Any voluntary contribution received by a Trust or an institution created wholly for religious or charitable purpose with a specific direction that they shall form part of the corpus of the trust or institution shall not be included in the income of the previous year of the NGO in receipt of such income. Donations received towards corpus are not considered as part of the income and therefore there is no need for 85% utilization.

    The utilization will also not attract tax.

    This is my limited understanding and would request some other responses on the same.

    Thanks and regards,

    B V Soma Sastry
    Director – Finance and Admin
    Centre for World Solidarity
    12-13-438, Street No. 1, Tarnaka
    Secunderabad 500 017
    Andhra Pradesh

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