Charitable Trust--Corpus Fund--Utilisation

Query

So far, charitable societies registered under Income Tax Act, receiving donation specifically for meeting capital expenses say for example for purchase of land and construction of school building, was credited to capital fund. The same was taken under section 11(1)(d) and accumulated for the purposes for which it was taken. When adequate fund was collected, purchase and construction activity got started. At that time, the same was debited to the asset a/c i.e., land /building by crediting Bank account.

To illustrate, an educational society proposed to buy land and construct school building estimated to cost Rs. 8 crores. For this purpose, it decides to go for public donation. For the financial years, it collects the following amounts towards the above capital expenses :--