Trust Outside 115BBDA Net: Dividend Remains Exempt u/s 10(34)

Jasmina Trust Vs DCIT (ITAT Delhi) Assessee, a trust registered u/s 12A, earned dividend income of Rs.25.51 lakh & claimed exemption u/s 10(34). AO treated the dividend as taxable, denied exemption & assessed income by invoking section 115BBDA, while CIT(A) partly upheld the addition by allowing basic exemption of Rs.10 lakh & taxing balance @10% u/s 115BBDA. ITAT held that though proviso to section 10(34) was inserted by Finance Act 2016 w.e.f. 01-04-2017, section 115BBDA applies only to Individual, HUF or Firm. A Trust does not fall within the class of assessees covered by sectio...