Accumulated Funds u/s. 11(2) made for two specific objects, can Trust utilize one specific object funds u/s. 11(2), towards another specific object as per charitable purpose

[PRIYAM KHAMBHATA]

Respected Sir,

`A' -Charitable Trust has made accumulation u/s.11(2) for Rs.1000000 towards Building Funds and Rs.500000 towards Laboratory Funds in AY 2022-23, Subsequently, during the FY 2025-26 relevant to AY 2026-27, `A' - Charitable Trust would plan to incur Building Renovation Expenditure about Rs.1250000. In this connection, can `A - Charitable Trust utilize the excess Rs.250000 towards building renovation expenditure, out of Laboratory Funds of Rs.500000.

In view of the above scenario, what would be the action taken by `A' - Charitable Trust, before utilization of Rs.250000 towards building renovation expenditure, out of the accumulated funds of Laboratory Funds - Rs.500000.

Please guide me

AI Summary

Specific-object funds reallocation: can a trust use one earmarked accumulation to cover excess expenditure for another charitable object? Whether a charitable trust may deploy accumulated funds earmarked for one specific object towards another specific object when both expenditures fall within its charitable purposes. The trust created two separate accumulations under Accumulated Funds u/s.11(2) for Building Fund and Laboratory Fund and later plans building renovation exceeding the Building Fund balance; the question asks whether surplus from the Laboratory Fund can be used for the excess and what procedural steps must be taken before such utilization.