Good evening members ❗
Need ur favour regarding trust topic.
Suppose, Ek trust ki income 10lac h usme se 15% ad-hoc deduction mil gya, remaining 85% ie 8.5 lac me se trust ne 7 lac applied kr diya, remaining 1.5 lac pr tax slab 2.5 lac ka benefit milega ya ni ya is income ko set a part krna mandatory h❓
As per current law no need to set a part but in my office, my boss is doing so.
R they doing correct treatment ❓
Is the trust registered under 12A ?
Trust (regd) has to spend minimum85% on object of the trust , if not then set apart the balance amount and carry forward for future 5 years. Balance means 100% minus say 70% spent then 30% to be carried forward.
If unregistered then income taxable @ MMR 31.20%
CAclubindia
