Income Tax on Trust 115BBI

This query is : Resolved

Rahul (Querist)
Follow

29 July 2023 Dear Sir

Religious trust registered under section 12 with income tax department. The details are as under:

Voluntary Doncation Received Rs 16.00 Lakhs
Bank Interest FD and SB interest Rs 4.00 Lakhs
Total Rs 20. lakhs

Applciation of Fund Rs 12.00 lakhs for trust object
15% (Rs 20 lakhs X15%) Rs 3.00 lakhs
Accured interes on FD not received Form 9A filled : Rs 2.00 Lakhs
Balnce Rs 3.00 Lakhs

Now the trust is filling return system applied 115BBI and charge 30% tax on total income ie 90,000/-.
My question is normal tax slab has been removed by finance budget on trust for AY2023-24? in AY2022-23 normal tax slab was appliable of the same trust.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 July 2023 Tax slab applicable for the trust it's not removed.
The Finance Bill 2022 has inserted a new section 115BBI to tax the following income of charitable organisations at 30% tax rate: • If accumulation is made in excess of 15% of total income without filing Form 9A or Form 10 then such excess accumulation. • If any income accumulated to subsequent year or five years by filing Form 9A or Form 10 is not applied within the prescribed time frame.

Rahul

Rahul (Querist)
Follow

03 August 2023 Thanks for reply
Form 9A filled but form 10 not filled because no accumulation.
Hence the final income over expenditure is Rs 3.00 lakhs after 15% and form 9A.

Now what the tax rate would be applicable? 30 % or normal slab.

Upgrade to CAclubindia Pro. Subscribe Now!