ASHLY ANSALAM (CA FINAL (1st group cleared) & ACCA STUDENT) (116 Points)
22 November 2013A Charitable Trust derives Rs. 5 Crores from a business activity.
How much is the taxable amount?
Will the whole Rs. 5 crores will be taxable or Is there is any exemption?
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 22 November 2013
Where total income before the exemptions u/ss. 11 and 12 of the trust exceeds the maximum amount not chargeable to tax; i.e., Rs. 2,00,000 (A.Y. 2013-14) , in order to get exemption u/ss. 11 and 12, the accounts have to be audited by an accountant as defined in explanation below sub-section 2 of Section 288, who will give his report in Form 10B.
If the income of the trust/institution referred to in clause (iv), (v), (vi) or (via) of Sec.10(23C) without giving effect to the provisions of these clauses exceeds the maximum amount not chargeable to tax, such trusts will have to get their accounts audited by the accountant as defined in Explanation below sub-section (2) of Section 288. (As provided in the Taxation (Amendment) Act, 2006) in form 10BB.
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