Charitable Trust or Institute

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ajay goyal (Querist)
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14 January 2011 Please tell me under which head income of educational institutions is taxable.
Whether under "Profit & gains from business & Profession" or under "Income from Other sources"

Thanks & Regards,
Ajay
CA.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 January 2011 Since running an Educational Institution is only possible with the help of professionals, educating people is a profession, persons studying there are would be businessmen or professionals (and to run such institutions have become a business, nowadays) it would be taxed under the head-

"Profits and Gains from Business or Profession."

The answer is based on the assumption that it's a private educational institution and not registered as Trust.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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14 January 2011 "Profits and Gains from Business or Profession."

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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14 January 2011

Taxable under Income from other sources because educational trust ( i.e. charitable trust) are never created to run for profit and gains.

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Due to this; the charitable trusts are out of purview of Tax Audits.

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ajay goyal

ajay goyal (Querist)
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15 January 2011 Dear Professionals,

Thanks a lot.
May god bless you all.

Regards,
Ajay
CA

ajay goyal

ajay goyal (Querist)
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22 January 2011 Dear Sir,
This is to ask that "IS THERE ANY CASE STUDY (OR) WRITTEN ANYWHERE IN ACT/LAW SUPPORTING THAT CHARITABLE TRUSTS ARE OUT OF PURVIEW OF TAX AUDITS."
Please give your valuable reply as soon as possible.
Eagerly Waiting.............

Thanks & Regards,
Ajay
CA.