alleryStart learning →Accumulated income is taxed under section 11(3) if the trust does what?
ASpends it on a school
BUses it for non-charity
CDeposits it in a bank
DInvests it as permitted
Answer & Solution
Correct answer: B. Uses it for non-charity
Accumulated income becomes taxable when it is applied to non-charitable purposes or ceases to be accumulated for application.
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