29 August 2013
In case of a trust, let HP income is Rs. 2,00,000/-, and standard deduction is Rs. 60,000. Now, 15% will be set aside under section 11. This 15% will be calculated on 2,00,000 or 1,40,000.
According to me,A Trust is governed by an altogether separate chapter in the income tax act, consisting of sections 11-13.
Also, it is not subject to the heads of income as given under section 14.
Hence, there is no question of section 24 being applicable to it.
hence, the 15% will be calculated on 2,00,000 and not on 1,40,000 since the deduction u/s 24 is not allowable and also, sections 11-13 do not speak of this deduction
30 August 2013
But Sir, this deduction is given under section 24. And since a trust is guided by 11-13, there is no question of 24 being applicable…infact, even the heads of income do not apply to a trust…so there is no way 24 can apply. Moreso, in the computation of the trust, there is no bifurcation for each head of income
This the main reasn why there have been litigations on the claim of depreciation on assets. Had this not been the case, 32 would have been straight away be allowed by the ITO
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