Yes, the trustee can draw a reasonable salary.

Trustee is not entitled to get any salary. But if that trustee is a legal advisor or chartered accountant of the trust or rendering any services like that of a lawyer or CA then he can get salary for rendering such services.

Yes he can be given salary from the trust fund showing him trustee and the employee meaning there by managing trustee a salary as compensation for his work can be given.under trust act and Section 13 of Income Tax Act state that the trustees can draw a “reasonable” compensation from the trust fund for the services they provide to the trust.

trustee can get salary from the trust as he is full time employment of trust

If trust deed says so than only.

1. Unless the Trust deed restricts any Trustee to draw any amount from the income of the Trust in any way, the said Trustee can draw the amount from the Trust fund as an employee for the services rendered by hm to the Trust.

2. The restraining terms mentioned in the Trust Deed or its absence will be the deciding factor to the said query.

Hello,

Please clarify that whether it is a private or public charitable trust ?

Both Bombay Public Trusts Act 1950 and Section 13 of Income Tax Act state that the trustees can draw a “reasonable” compensation from the trust fund for the services they provide to the trust. Please note that being a trustee itself is not considered a service.

Reasonable meaning

Lets assume, in a charitable trust, one of the trustees is a qualified Chartered Accountant –and if he is managing the trust’s accounts. In such a case he is eligible for a reasonable compensation for his CA work because his work is saving the Trust from paying another CA’s fee.

“Reasonable” means that the compensation must not be higher than the prevailing average market rate.

If one or more trustees are taking unreasonable benefits from the Trust Fund –the Income Tax Department may refuse/revoke the allotment of tax exemptions under section 12A and 80G. If that happens all the donations/earnings acquired by the Trust shall become taxable.

Regards

HI

1) In accordance to Sec. 13(2)(c) of income tax act if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub- section (3) out of the resources of the trust or institution for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services is allowable.

Sub-Section (3) reads as follows:

The persons referred to in clause (c) of sub-section (1) and sub-section (2) are the following, namely:-

(a) …………….

(b) …………….

(c) …………….

(cc) any trustee of the trust or manager (by whatever name called) of the institution;

2) You may to refer to case law of PNR Society for Relief & Rehabilitation of the Disabled Trust Vs. DDIT (ITAT Ahmedabad), ITA No.2729/Ahd/2010.] which supports the legal position that the trustee can get salary from trust fund and the same is treated as Expenditure incurred in relation to exempt income in trust accounts.

Hope this information is useful.

trustees can draw a “reasonable” compensation from the trust fund for the services they provide to the trust.

Trustee who is a full time employee of the trust can draw reasonable salary as per law.

Hello,

Yes he can get a monthly salary.

Regards

Dear Sir,

It all depends on the resolution passed by the trust and terms of the trust deed. If they do not pay the salary then get issue a legal notice and claim arrears of salary on the basis minute books.

Yes

Check trust deed

The work of employment must not be in conflict of duties of a trustee in the trust deed

A full time employee or a part time employee is entitled for salary in the capacity of his employment.