Facts :<\/p>\n
A Private Specific Family Trust is there having four major persons as its beneficiaries.
\nShares of all the beneficiaries are fixed and known as per the trust deed.<\/p>\n
Said Trust owns commercial building through which it receives rental income.
\nReturn of income of Trust is regularly filed and income from rent is allocated to beneficiaries according to their shares and said income is offered for tax by beneficiaries when they file their return of income (i.e of beneficiaries ) and returned income of Trust is always NIL and Trust does not pay any taxes on rental income.
\nNow the Trust intends to sell the building which is long term capital assets<\/p>\n
On sale of building substantial Long term capital gain will be generated.<\/p>\n
The trustees wants to allocate this capital gain to individual beneficiaries and wants individual beneficiaries to show the same in their return of income and pay the tax accordingly individually and they want to file Return of income of Trust with NIL income<\/p>\n
Query 1 \u2013 Whether the trust can allocate this Long term capital gain in the hands of individual beneficiaries as per their shares and then the individual beneficiaries offer the said LTCG in their personal return of income and pay tax individually.<\/p>\n
Query 2 \u2013 If the trust can allocate this LTCG as mentioned in Query 1 above then whether each individual beneficiary can claim deductions un der section 54EC or 54F against the said sale? I.e. whether individual beneficiaries can claim 50 lakhs each (under section 54EC) in their hands against LTCG per beneficiary.<\/p>\n
Query 3 \u2013 If the trust cannot allocate this LTCG as mentioned in Query 1 then whether the trust can claim deductions like 54, 54F or 54EC in the hands of Trust itself?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[24,569,570,86],"class_list":["post-26617","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-capital-gains","qa_tag-private-discretionary-trust","qa_tag-specific-trust","qa_tag-taxation-of-trusts"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/26617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=26617"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=26617"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=26617"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=26617"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=26617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}