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Income of Trust

Hemant Kyal (Service) (348 Points)

08 August 2008

uNDER WHAT HEAD WILL THE INCOME OF THE TRUST BE TAXABLE??

PLEASE REPLY AS IT IS OF UTMOST URGENCE

THANKS.

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1 Replies

srinivas (chartered accountancy) (44 Points)
Replied 08 August 2008

if the trust is registered under 12aa of income tax it is exempt from tax stipulated to some conditions. the income from trust are shown under income from other sources as the trust is not engaged in business (as for the objectives of the trust). even though the income from trust are shown under business if the is engaged in such business activities which are incidental and ancillary for the attainment of the objectives of the trust .first see the objectives of the trust and see whether it is registered u/s12 aa of ITact