Penalty on Charitable Trust for Providing Benefit to Related Persons
Nature of Default
A penalty is levied if any trust or institution, referred to in Section 11 or 10(23C)(iv)/(v)/(vi)/(via), has applied its income for the benefit of an interested person.
Quantum of Penalty
• First violation: Penalty equals the amount of income applied for the benefit of the interested person.
• Subsequent violations: Penalty equals twice the amount of such income applied.