10 January 2015
A trust is running a School and a Chit business. The assessing officer add back the income of Chit Business Unit as per the first provision to Sec 2(15. The income from Chit Business is Rs.2 lakhs, which is below the basic exemption limit. But even though the ITO demand the liability of Rs.60,000 plus interest with out considering the basic exemption limit. Whether the ITO is correct ? If yes, please refer, the Sec.
10 January 2015
Private trust will be taxed at a slab rate applicable for individual provided it does not have business income. Any business income may be taxed @ 30%.
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