Master TDS & TCS Provisions with Critical Issues. Register Now!

trust

Raju Miskin (article Asst.) (125 Points)

29 October 2017

Dear sirs,
Trust registered under section 12A, Transfered its Land and earned capital gain of Rs 25 Lakhs the same has been deposited in bank.
whither the income is taxable ?
or allowable under section 11(1A)?

Reply
Follow
Share

6 Replies

Ashwin Kumar (1234 Points)
Replied 29 October 2017

if the same is invested in another land or the said gain has been used for the purpose of which the trust was formed then exempted.....otherwise taxable .....

Upgrade to CAclubindia Pro. Subscribe Now!

Raju Miskin (article Asst.) (125 Points)
Replied 30 October 2017

Not yet utilized but deposited in Bank

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 30 October 2017

the amount as capital gain should be utilized for trust / caritable purposes then the whole capital gain is exempted . . .

Raju Miskin (article Asst.) (125 Points)
Replied 30 October 2017

deposited in bank but may use it in future for the charitable purpose. during thr year shall i get exemption?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 30 October 2017

You have to give explanation . . .

The assessee exercises the option available under explanation to section 11(1), to apply the income in subsequent year.

Upgrade to CAclubindia Pro. Subscribe Now!

Archit Goel (Student) (96 Points)
Replied 30 October 2017

Section 11 states that income arising from property HELD shall be exempt if applied. However 15% is adhoc deduction. But in case of transfer, this will not regard as income from property HELD.