HELLO FRIENDS, CAN ANYBODY TELL ME THAT ONLY FORM 10B IS TO BE ISSUED IN CASE OF THE TRUST.
BUT I HAVE SEEN THE AUDIT REPORT OF LAST YEAR IN WHICH WITH FORM 10 B FORM 3CB AND FORM 3CD IS ALSO ISSUED.
PLS. HELP ME. NOW WHAT CAN I DO IN THIS YEAR.
11 Replies
vikaskamra
(CA Final Student)
(132 Points)
Replied 02 September 2010
only form 10B is to be issued with balance sheet and income and expenditure of the trust which forms parts of audit report i.e form 10B is the audit report in case of trust and 3CB and 3CD are for tax audit not trust audit..
T.V.VENKATARAMAN
(LAWYER & TAX CONSULTANT)
(36 Points)
Replied 02 September 2010
T.V.VENKATARAMAN,
ADVOCATE,
CHENNAI.
02-09-2010
Form 10 -B is the format for the Trust Audit. However I am of the view that when the Trust has business activities for which a separate set of accounts is to be maintained , then for the business segment as usual Audit under Sec. 44-AB of the I..T Act and consequentially Form 3CB & 3 CD are applicable. Hence both the reports may have been attached.
MR. CA
(Auditor,)
(537 Points)
Replied 03 September 2010
My Question is What is corpus find & Own Funs ,Which are Taxable Which are Non Taxable..
Please Clarify My Concept.
Vicky
(CA, LCS,MCOM,)
(136 Points)
Replied 03 September 2010
in case of trusts corpus donation.i.e.donation made with a specific direction that it shd form part of corpus of trust is not taxable u/s11..non corpus donations are taxable u/s 12.....however before claiming exemption on corpus donations..sec 115BBC needs to be taken care of...................................
MR. CA
(Auditor,)
(537 Points)
Replied 04 September 2010
BUT WHAT DOES THIS SPECOIFIC DIRECTION MEANS?
hyponkshe
(chartered accountants)
(73 Points)
Replied 09 September 2010
specific direction means written request or directive by doner for use of fund donated by him & duly accepted by the receipent trust
T.V.VENKATARAMAN
(LAWYER & TAX CONSULTANT)
(36 Points)
Replied 10 September 2010
T.V.VENKATARAMAN,
Chennai.
10-09-10
However if the donations are with a specific direction by the Donor that the Donations should form part of the Corpus (Nucleus ) Funds then the said Donation is exempt from the purview of Income Tax U/s 11(1)(d). These funds need to be kept invested in the securities approved under the I.T.Act U/s13 and cannot be used for the day to day activities of the Trust. Only the Income out of such Corpus Donation can be used provided there is not restriction / direction on that usage. Generally a confirmation letter is taken from the donor along with his name, address and PAN, wherein the any specific direction the Donor would like to give with reference to the Donation made can and is generally included. The Trust has to then act accordingly subject to the overall guidance in the I.T.Act.
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