Trust

Tax on Capital gain on sale of Assets by Charitable Trust/NGO

Income Tax - The definition of income under section 2(24) includes Capital Gains and therefore for the purposes of section 11, Capital Gains should form part of the income and consequently it should be treated at par with any other income under section 11....

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Exit tax where charitable institution converts into non-charitable

Income Tax - In order to ensure that the intended purpose of exemption availed by trust or institution is achieved, a specific provision in the Act is required for imposing a levy in the nature of an exit tax which is attracted when the organization is converted into a non-charitable organization or gets merged with a non-charitable organization or do...

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5 FAQs on registration of trust in Karnataka

Income Tax - Q.1 How to form a Trust’?  Ans: a) A trust can be formed as per Section 4 of Indian Trust Act 1982 for a lawful purpose; b) A trust should have a document written (Trust Deed) and signed by trustees or a sole trustee; c) A trust can be formed through a will also; There […]...

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Procedure of Trust Registration in Punjab

Income Tax - What is Trust As per the Indian Trust Act 1882, a Trust is an arrangement where the author/ owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary). Such a property is transferred by the author/ trustor to the trustee along with a proclamation that the trustee should […]...

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Analysis of Budget 2020: Impact on Charity Institution

Income Tax - For development sector, on the one-hand, the budget has covered various loopholes but on the other side, it has burdened the non-profit sector with renewal formalities, donation reconciliation requirements and other registration formalities....

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CBDT withdraws tax-exemption of four cricket associations

Income Tax - The Income Tax authorities have looked into the affairs of the four cricket associations, namely Saurastra Cricket Association, Baroda Cricket Association, Kerala Cricket Association and Maharastra Cricket Association and have found that these cricket associations were engaged in certain activities which were considered commercial in natu...

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Trust evading Tax due to casual approach of Income Tax Department : CAG

Income Tax - ITD granted registrations/approvals/notifications to the 799 Trusts without verifying necessary documents such as copy of the Trust Deed, proper clauses in the Trust Deed, audited accounts etc. ITD granted registrations/approvals/notifications to 73 Trusts having no PAN which is in contravention of the provisions of Act....

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Department Issuing Notice to Charitable Trust If They Collecting Any Fess, Cess Or Other Consideration For Services Rendered

Income Tax - As per the new definition of charitable purpose in Finance Act 2008, advancement of any object of public utility, which was earlier considered to be “charitable purpose,” is now not so if it involves the “carrying on of any activity in the nature of trade, commerce or business or any activity of rendering any service in relation to ...

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Amendment to Section 20 of The Indian Trusts Act, 1882

Income Tax - Amendment to Section 20 of the Indian Trusts Act, 1882 (2 of 1882) which relates to investment of trust money has been approved by the Cabinet today. A Bill will be introduced in the ensuing Session of Parliament. ...

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New trust entitled for Section 12AA registration despite no activity: SC

Anand Social and Educational Trust Vs CIT & Anr. (Supreme Court) - Anand Social and Educational Trust Vs CIT & Anr. (Supreme Court) Whether a newly formed trust is entitled for registration under Section 12AA of the Income Tax Act, 1961 even if any activity has not been undertaken as yet? In brief, section 12AA of the Act empowers the Principal Commissioner or ...

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Exemption u/s 10(23)(iiiad) cannot be denied for mere surplus 

New Amazing Shiksha Society Vs. ITO (Exemption (Ward) (ITAT Delhi) - New Amazing Shiksha Society Vs. ITO (Exemption (Ward) (ITAT Delhi) Exemption u/s 10(23)(iiiad) of the Income Tax Act, 1961 should not be denied to the assessee as selling of books and uniform to the students of assessee is part of educational activity only. Moreover, the impugned addition was made m...

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Transport facility by School is incidental to main object of education

Delhi Public School Ghaziabad Vs ACIT (ITAT Delhi) - Challenging the order dated 02.03.2015 in Appeal No 98/13-14/GZN/63 for the assessment year 2010-11 passed by the learned Commissioner of Income-tax (Appeals), Muzaffarnagar (for short hereinafter called as the learned CIT(A)), the assessee preferred this appeal....

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Registration U/s. 12AA cannot be cancelled merely because collection exceeds threshold limit provided u/s 2(15)

Telangana State Seed Certification Agency Vs. Commissioner of Income Tax (Exemptions) (ITAT Hyderabad) - CBDT has also clarified that in view of this position, it shall not be mandatory, for the registration granted u/s 12AA of the Act to a charitable institution, to be cancelled merely on the ground that the cut off specified in the proviso to section 2(15) of the Act is exceeded in a particular year ...

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Medical college collection Huge Capitation Fee as Anonymous Donations – HC disallows Tax exemption

M/s Navodaya Education Trust Vs Sri. Sunki Rajender Reddy (Karnataka High Court) - M/s Navodaya Education Trust Vs Sri. Sunki Rajender Reddy (Karnataka High Court) The petitioner – Trust in question having the cloak of an Educational Trust, to enjoy the exemption from Income Tax obtained the approval under Section 10(23-C) of the Act, was thoroughly misused and abused by the...

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Bombay Public Trusts (Second Amendment) Rules, 2019

No. BPT-1117/C.R. 59/Desk XV - (15/05/2019) - These rules may be called the Bombay Public Trusts (Second Amendment) Rules, 2019. 2. In rule 1 of the Bombay Public Trusts Rules, 1951, in sub-rule (1) i.e., in the short title and throughout the principal Rules, for the words and figures Bombay Public Trusts Rules, 1951 the words Maharashtra Publi...

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Internal Audit Procedure of Registration Process of Charitable Trusts

F. No. 240/8/2015— A & PAC —11 - (14/12/2018) - It has been recommended by the Hon'ble Public Accounts Committee that the process of the Registration Process of Charitable Trusts / Institutions should be brought under the purview of internal audit....

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Govt asks NGOs getting foreign funds to register with Niti Aayog

No. II/21022/58(119)/2015/FCRA (MU)/ - (04/10/2017) - It has been decided that all the existing FCRA registered associations and those who are seeking registration/prior permission or accepting foreign contribution are required to register with DARPAN Portal with all the necessary information such as Organization PAN, email, Mobile Number & Name of Chi...

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Indian Trusts (Amendment) Act, 2016 applicable from 17.04.2017

Notification No. S.O. 1184(E) - (17/04/2017) - Central Government hereby appoints 17th day of April, 2017 as date on which provisions of Indian Trusts (Amendment) Act, 2016 (34 of 2016 shall come into force....

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No mandatory Trust registration cancellation u/s 12AA for Turnover

Circular No. 21/2016-Income TAx - (27/05/2016) - It is clarified that it shall not be mandatory to cancel the registration already granted u/s 12AA to a charitable institution merely on the ground that the cut-off specified in the proviso to section 2(15) of the Act is exceeded in a particular year without there being any change in the nature of a...

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Recent Posts in "Trust"

Tax on Capital gain on sale of Assets by Charitable Trust/NGO

The definition of income under section 2(24) includes Capital Gains and therefore for the purposes of section 11, Capital Gains should form part of the income and consequently it should be treated at par with any other income under section 11....

Read More
Posted Under: Income Tax | ,

Exit tax where charitable institution converts into non-charitable

In order to ensure that the intended purpose of exemption availed by trust or institution is achieved, a specific provision in the Act is required for imposing a levy in the nature of an exit tax which is attracted when the organization is converted into a non-charitable organization or gets merged with a non-charitable organization or do...

Read More
Posted Under: Income Tax |

5 FAQs on registration of trust in Karnataka

Q.1 How to form a Trust’?  Ans: a) A trust can be formed as per Section 4 of Indian Trust Act 1982 for a lawful purpose; b) A trust should have a document written (Trust Deed) and signed by trustees or a sole trustee; c) A trust can be formed through a will also; There […]...

Read More
Posted Under: Income Tax |

New trust entitled for Section 12AA registration despite no activity: SC

Anand Social and Educational Trust Vs CIT & Anr. (Supreme Court)

Anand Social and Educational Trust Vs CIT & Anr. (Supreme Court) Whether a newly formed trust is entitled for registration under Section 12AA of the Income Tax Act, 1961 even if any activity has not been undertaken as yet? In brief, section 12AA of the Act empowers the Principal Commissioner or the Commissioner of the […]...

Read More

Procedure of Trust Registration in Punjab

What is Trust As per the Indian Trust Act 1882, a Trust is an arrangement where the author/ owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary). Such a property is transferred by the author/ trustor to the trustee along with a proclamation that the trustee should […]...

Read More
Posted Under: Income Tax |

Analysis of Budget 2020: Impact on Charity Institution

For development sector, on the one-hand, the budget has covered various loopholes but on the other side, it has burdened the non-profit sector with renewal formalities, donation reconciliation requirements and other registration formalities....

Read More
Posted Under: Income Tax |

Re-obtaining Section 12AA Registration| Approval U/s. 10(23C) & 80G

Budget 2020: Re-obtaining Of Registration under Section 12AA & Approval under Section 10(23C) & Section 80G by Existing Registered / Approved Entities – Concerns and Issues Introduction: The income of the charitable / religious trusts, institutions, universities, educational institutions, hospitals, other medical institutions et...

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Posted Under: Income Tax |

Major Income Tax Proposals for Charitable Trusts & Institutions: Budget 2020

The process of approval and registration of trusts, institutions, funds, university, hospital etc. proposed to be rationalised with effect from 1.6.2020. Now, the approval or registration or notification for exemption will be valid for a period not exceeding five years at one time;...

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Posted Under: Income Tax |

Budget 2020 provisions related to Charitable trust, institution and funds

Amendment of sub-section (7) of section 11 to allow entities holding registration under section 12A/12AA to apply for notification under clause (46) of section 10 Section 11 of the Act provides for grant of exemption in respect of income derived from property held under trust for charitable or religious purposes to the extent to which [&h...

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Posted Under: Income Tax |

Budget 2020 | Exemption U/s. 11 & 10(23C) | Approval U/s. 80G

Budget 2020: Exemption Under Section 11 AND Section 10(23C) And Approval Under Section 80G For Charitable / Religious Etc. Trusts, Institutions Etc. – An Analysis Of Proposed Amendments Introduction: The Finance Bill, 2020 has proposed to make substantial changes regarding provisions for granting exemptions to the charitable / religious...

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Posted Under: Income Tax |

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