https://www.taxtmi.com/circulars?id=4438 A trust may retain a limited portion of its income tax-exemptly, but if it accumulates beyond that limit it must invest the entire unspent balance, including the otherwise exempt portion, in prescribed Government securities and comply with notice and filing requirements; failure to meet these protective-investment conditions renders the whole accumulated amount taxable when the accumulation ceases to satisfy those conditions. Trust "income" for these rules is the trust's commercial/book income as shown in accounts adjusted for relevant appropriations and capital debits, while capital donations are excluded from the accumulation limit except contributions from other trusts treated as income. en-us Sat, 23 Aug 1969 00:00:00 +0530 Sat, 09 Aug 2008 11:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=4438 A trust may retain a limited portion of its income tax-exemptly, but if it accumulates beyond that limit it must invest the entire unspent balance, including the otherwise exempt portion, in prescribed Government securities and comply with notice and filing requirements; failure to meet these protective-investment conditions renders the whole accumulated amount taxable when the accumulation ceases to satisfy those conditions. Trust "income" for these rules is the trust's commercial/book income as shown in accounts adjusted for relevant appropriations and capital debits, while capital donations are excluded from the accumulation limit except contributions from other trusts treated as income. Circulars Income Tax Sat, 23 Aug 1969 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4438