01 December 2011
a trust registred under sec 12A of income tax act . earned income on fd . of Rs. 12 lac on grant received from Govt. the trust had not yet started any business. all the money remains in bank . nothing is not yet use for business. Q1- can trust get exemption. Q2- if taxable under what head. what is tax liability. thanks
01 December 2011
The income earned as interest on FD which is granted by the Government will be taxed as Income from Other sources and same will be taxed in the year in which it started business according to the provisions of Income Tax Act, 1961.
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