Please Help: Taxation of Trust
Posted Date : 20-Oct-2011 , 06:30:34 pm | Posted By: Subhash Jain
Category :
Income Tax | Answers :
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One of my client trust is registered u/s 12A.
During fi. yr. 2010-11 its gross receipts are of rs.7.68 lcas including Long Term Capital gain of Rs.4.50 Lacs and Other souces income (Interest) of Rs.3.18 Lacs.
During the year it has incurred Rs.3.83 lacs revenue expenditure for the objects of the turst and surplus left is Rs.3.85 Lacs.
The Long Term Capital Gain after Indexation comes to Rs.3.31 Lacs.
Now sir my query is, in the computation the LTCG is Rs.3.31 lcas (after indexation) and Other source income is Rs. -.65 Lacs. So whether amount utilized for the objects of the trust out of LTCG can be deducted from LTCG or it has to pay tax @ 20% on LTCG (it has not invested the LTCG in another Capital Asset but made the Fixed Deposit).
Any set off of Loss from Other source from LTCG is allowable in this case as the funds are utilized for the objects of the trust?
Please reply me with computation of total income and if any more clerification/detail is required, kindly let me know.
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Answers:
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 Answer by: Ashish Karundia |
| Dear subash,
I understand that the trust has gross receipt of Rs.7.68 lcas(i.e.proceeds from sale of asset Rs.4.50 lacs & Interest income Rs.3.18 lacs). Further, the indexed LTCG is Rs. 3.31 lacs and interest income is Rs. (-)0.65 lacs. I want to understand how there is a loss in interest income.
Please revert asap so that the query can be answered.
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