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New section 2(15) regarding Charitable Trust

Started by rknaudiyal2000, March 16, 2009, 09:03:42 PM

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rknaudiyal2000

Dear Friends,

We have a Gratuity Trust and contributed Gratuity contribution in every year according to as-15. we have invested Trust income in various mutal fund & fixed deposit and received dividend and interest. Can these income is taxable under section 2(15) Trust Act.

Thanks

brett_lee38

yes the income earned on fix deposit and funds is chargeble to tax under the I.T.Act under the head "other sources".

rknaudiyal2000

Sir,

If Dividend received is exempt from tax in the hand of Trust then how can income taxable of Gratuity Trust because Divendend Distribution Tax is applicable at the end of Company.

brett_lee38

Yes Agreed if the dividend income is exempt then there is no tax

vyakul

Sir
I am of the opinion that the income shall be exempt based on the following
1) Income tax exemption obtained
2) Based on the principal of mutuality
Regards
sathya


rknaudiyal2000

Dear Sir,

At the time of Dividend Distributed then Dividend distribution tax is applicable. Therefore to save double taxation diviend income is exempt at the hand of Income receiver.

brett_lee38

Similar issue is pending before the Hon'ble Delhi High Court may be this issue would be referred to special Bench