Trust taxation
Nidhi (Chief Accountant) (3150 Points)
22 September 2020
is trust is liable to pay tax or fully exempt from tax ?
12 Replies
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 22 September 2020
The entire income of trust be it house property, capital gain or any other income is taxed as per the provisions of section 11-13 of the Income Tax Act, 1961 rather than as per there relevant provisions. So it's not Fully Exempt, but various Exemption is available for trust...
Nidhi
(Chief Accountant)
(3150 Points)
Replied 22 September 2020
Ok, means house property or capital gain is taxable as like others person
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 22 September 2020
No, it's not taxable as per normal Provision like 5 heads of income as in normal course.
Trust's taxable income will be computed in a specified manner as per Sec 11-13 of income tax act, 1961
Trust's taxable income will be computed in a specified manner as per Sec 11-13 of income tax act, 1961
Nidhi
(Chief Accountant)
(3150 Points)
Replied 22 September 2020
If trust registered under income tax, sell property than capital gain. how calculate.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 22 September 2020
The capital gain arising from the transfer of a property held by religious/charitable trust shall be taxable as under:
1) Cost of new asset ≥ net consideration from asset sold → Entire capital gain is exempt
2) Cost of new asset < net consideration from asset sold → Capital Gains Exempt = Cost of new asset less Cost of old asset
1) Cost of new asset ≥ net consideration from asset sold → Entire capital gain is exempt
2) Cost of new asset < net consideration from asset sold → Capital Gains Exempt = Cost of new asset less Cost of old asset
Nidhi
(Chief Accountant)
(3150 Points)
Replied 22 September 2020
How other income taxable and calculate tax
Ganesan Rajendran
(2 Points)
Replied 22 September 2020
If trust registration is refused by commissioner who is the appellate authority and which section???
Nidhi
(Chief Accountant)
(3150 Points)
Replied 22 September 2020
Total income of Trust
add: Voluntary Contribution i.e donation
From this total income Flat 15% deduction is available, remaining 85% if you applied for charitable and religious purpose, than total amount exempt, there will be No tax payable..
Is it right?
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 22 September 2020
Yes, it right..if you Applied 85% of total income ..that it's totally Exempt.
Nidhi
(Chief Accountant)
(3150 Points)
Replied 22 September 2020
Sir, for trust return filing is compulsory if all amount are exempt as there is no tax payable
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 22 September 2020
For Trust income tax return filing is mandatory as per Section 139 if income of trust before Claiming Deduction Under section 11-13 is more than Exemption limit.
sabyasachi mukherjee
(27574 Points)
Replied 22 September 2020
Its impliedthd trust has applied 85% of his income towards trust.
Recent Topics
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
Related Threads
CAclubindia
