Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Urgent Income Tax Query

Ronit (Article) (73 Points)

22 November 2010

After many times repetative readings i am unable to understand exact difference between sec 139 (4a), 139(4c), 139(4d) of Incme Tax Act 1961.
139(4a) talks about income of trust at same time 139(4c) also talks about trusts?
139(4c) talks about university etc. sec 139(4d) also talks about same?
plz resolve my query.

Reply
Follow
Share

2 Replies

Vijay Patil (Practising Chartered Accountant) (46 Points)
Replied 22 November 2010

Dear Rohit, all the sub section/provision although talks about trust& universities but they all have their different meaning in the act....if u carefully read the provision u will find their different meaning....refer below extracts;

Section 139 (4A):

Its speaks about a person (and not the trust) who receives any income derived from property held under Trust

Section 139 (4C): it speaks about ;

1. trust or institution referred to in sub-clause (v) of clause (23C) of section 10 (reproduced below)

(v) ⁴⁹any trust (including any other legal obligation) or institution wholly for public religious purposes or wholly for public religious and charitable purposes, ⁵⁰[which may be approved by the prescribed authority⁵¹], having regard to the manner in which the affairs of the trust or institution are administered and supervised for ensuring that the income accruing thereto is properly applied for the objects thereof;

2. any university or other educational institution referred to in ³³[sub-clause (iiiad) or] sub-clause (vi) of clause (23C) of section 10 (reproduced below)

(iiiad) any university or other educational institution⁴³ existing⁴³ solely⁴³ for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed⁴⁴;

(vi) any university or other educational institution⁵³ existing⁵³ solely⁵³ for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved⁵⁴ by the prescribed authority⁵⁵

(iiiab) any university or other educational institution⁴³ existing⁴³ solely⁴³ for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government;

Section 139 (4D): it speaks about: Every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, which is not required to furnish return of income or loss under any other provision of this section (reproduced below)

ii) ⁵⁹[an amount equal to ^59a[one and one-fourth] times of any sum paid] to a ^59b[scientific research association] which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research :

⁶⁰[Provided that such association, university, college or other institution for the purposes of this clause—

(A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and

(B) such association, university, college or other institution is specified as such, by notification⁶¹ in the Official Gazette, by the Central Government;]

iii) ⁶⁶[an amount equal to one and one-fourth times of ^66a[any sum paid] to a university], college or other institution to be used for research in social science or statistical research :

⁶⁷[Provided that ^67a[such university], college or other institution for the purposes of this clause—

(A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and

(B) ^67a[such university], college or other institution is specified as such, by notification⁶⁸ in the Official Gazette, by the Central Government.]

⁶⁹[Explanation.—The deduction, to which the assessee is entitled in respect of any sum paid to a ^69a[scientific research association], university, college or other institution to which clause (ii) or clause (iii) applies, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval granted to the association, university, college or other institution referred to in clause (ii) or clause (iii) has been withdrawn;]