Charitable trust under Income Tax Act,1961
12
TAX R U T A PRESENTATION BY ARPIT VERMA On sec. 11,12&13 Of INCOME-TAX ACT,1961
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Transcript of Charitable trust under Income Tax Act,1961
TAX
T R U S T
A PRESENTATIONBY
ARPIT VERMA
On sec. 11,12&13Of INCOME-TAX ACT,1961
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S.N. CONTENT SECTION
1. Charitable purpose 2(15)2. Income from CHARITABLE
TRUST11
3. Registration of trust 12A4. Procedure of Registration 12AA5. Forfeiture of exemption.(cases
when exemption is not available)
13
6. Income of Political parties 13A7. Income of a electoral trust 13B
Sec. related with TRUST
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SEC.2(15)…..DEFINITION OF CHARITABLE PURPOSE INCLUDE……….
1.RELIEF TO POOR
2.EDUCATION
3.MEDICAL RELIEF4.ANY OTHER OBJECT OF PUBLIC UTILITY
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Sec. Nature of income Exemption allowed11(1)
(a)
Income from property held under trust wholly for charitable or religious purposes in India
If—(A) income is applied OR deem to be applied to such charitable or religious purposes .
(B) Such 15% income is set apart for application to such purposes .
11(1)
(c)
Income from property held under trust for charitable purposes outside India
If—the trust promotes INTERNATIONAL WELFARE in which INDIA IS INTERESTED
11(1)
(d)
Income in the form of voluntary contributions received with a specific direction that they shall form part of the corpus (principal part of fund) of the trust or institution.
100% exemption.
NOTES- Contributions received without such specific direction are deemed to be income from property held under trust…
“Income of Trust exempted under sec 11”
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TAX SAVING
? “Spend the Income for
welfare of
Public,Don’t pay tax”
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REGISTRATION OF TRUST sec.11
Make an application for registrationIn the prescribed form to the Chief CIT/CIT
•AS PER SEC 12A, exemption is available only•If- A/Cs of trust audited•In case the total income of trust before exemption u/s 11 exceeds rs 180000/- .•Audit report should be submitted
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PROCEDURE FOR REG. sec 12AAWithin 6 months, On receipt of an app. For reg. The Chief CIT/CIT shall call for documents & informationTo satisfied himself about the activities of trust
IF SATISFIED------------------REGISTRATION PASS After reg. .. If commissioner found that trust
are not being carried out as per object of trust,
He shall cancel the registration.
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Forfeiture of exemption1.Income of religious trust not used for public
benefit. [sec.13(1)(a)]]2.Income of charitable trust created for
benefit for particular religious community.[sec.13(1)(b)]
3.Income/ property of charitable or religious trust applied for direct or indirect benefit of person referred in 13(3) . [sec.(13)(1)(c)].
4.Anonymous donations.[sec.115BBC]SEC.13
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Anonymous donationAnonymous donations liable to be taxed at 30%.If Name & address of donor is not maintained.But anonymous donation taxable upto--.
5% of T.I. or 100000Whichever is
higherSec.115BBC
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Income of political parties
Sec.13A
Conditions for claiming Exemption for political parties
Maintains books & other required documentMaintains record of voluntary contributions exceeding 20000.A/cs are audited by a CA.Registered with the Election Commission of India as a political party
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Exemption to political parties
Income which is taxable U/H
House property
Other sources
Capital gain
Income by way of voluntary contribution
from any person
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Any Question?
Thank You
