14 December 2021
Suppose Assessee has created a Trust For the benefit of Daughter and The Accumulated Income will be hand over on attaining Majority. What will be taxation in the current Tax Period and In the Future When the Assessee Daughter has attained Majority.
14 December 2021
In the current tax period trust has to pay tax. After majority daughter has to pay taxes.
Rate of tax –If taxable in hands of the beneficiaries then the normal rates applicable to the beneficiaries. Similar position to apply even if tax recovered from the Trustee in representative capacity. Section 161(1A) states that, where the income consists of any profits or gains of business, then the same is to be taxed at MMR, subject to certain exception. Further, special rates as are applicable to special category of income like long term capital gain would continue to apply.
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