27 April 2016
dear all, religious trust has fd interest of 6,00,000/- further for the every assessment year said fd interest is applied and used for the propose of trust (revenue and capital expenditure). and hence trust has (no/nil) income tax liability for every year. on submission of 15G to bank for Fy 16-17, bank has informed trust, As trust interest income is more than rs. 300000/- bank can not accept 15G . and tds will be deducted. Further condition for 15G 1. 15G can be filed by (Individual and any other assessee (not being firm and company), so trust can filed 15G if it complied following 2 condition. 2. if total income not exceed exempted limit... 3. and Nil income tax liability on the declared income for the relevant year.
Query
1. What is trust exempted limit in income tax ? 2. if their is no exempted limit in income tax for trust, than can trust filed form 15G for non deduction to the bank....having interest income of rs. 600000/- and nill income tax liability for the relevant year???
27 April 2016
Dear Anonymous,
If the trust is registered under the co operative societies act then the basic limit applicable to CO op SOC shall apply.
Also please note that for income of the trust to be exempt, the utilization of funds criteria must be satisfied. this is ascertainable only after year ends. but the form 15g is to be given at beginning of the year. Hence the income to be earned by the trust cannot be claimed exempt unless year ends.
CAclubindia
