25 October 2024
In respect of a trust registered u/s 12A, suppose we have total receipts amounting to Rs.10,00,000 during the year out of which 8,00,000 has been applied to charitable objects. This results in excess accumulation of Rs.50000 (i.e. excess over 15% of 10,00,000). When we enter the receipts and expenditure in the ITR form, it itself computes excess accumulation of 50,000 and includes it in taxable income. Now this 50,000 needs to be reported in section 115BBI. However when we do so, in the total computation, this 50,000 gets updated twice (one from the system calculated excess and other from schedule BBI) resulting in total taxable income of Rs.1,00,000. Although tax is being computed on Rs.50000 only as the other 50000 is getting exempt being less than basic exemption limit but from the disclosure point, the taxable income computation is not correct. Please suggest on how to resolve this issue.
26 October 2024
1. Check if Schedule 115 BBI is filled properly. 2. Check if Schedule TI part B 1 field “Income chargeable u/s 115BBI” reflects the amount chargeable to tax. 3. In Schedule TTI Part B, if tax on field “Income chargeable u/s 115BBI at @ 30% reflects the tax liability properly. 4. If all above yes, no need to fill Schedule IFOS.
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