Which itr used by an gratuity trust registered u/s 10 (25)

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Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2016 DEAR SIR,

KINDLY PLEASE HELP REGARDING USE OF ITR FORM BY AN GRATUITY TRUST U/S 10 (25) OF INCOME TAX ACT, 1961 ITR 5 OR 7.

FURTHER ALSO CLARIFY THAT IS ALL INCOME FROM LIC FUND IS EXEMPT OR NOT AND IF EXEMPT, THAN WHAT AMOUNT TO BE SHOWN IN ITR NET OF FUND MAINTENANCE CHARGES OR GROSS INCOME?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 June 2016 All income from LIC fund is exempt. No need to file return unless the trust has any taxable income.

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2016 Dear sir Thanks for your reply,

Kindly please provide reference of section which provide these type exemption from filling of return..

Kindly please answer

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2016 See the link.

https://cleartax.in/guide/are-you-required-to-file-income-tax-return

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2016 Dear Sir,

Thanks for your kind replies,

Further if we want to file ITR – 5 for gratuity trust following question arise:-

1. Is interest received on LIC Fund which is shown as exempt income is required to shown net off expenses i.e. fund maintenance charges or to be shown in gross.

2. Contribution to LIC fund by Company for Trust which is shown in Income and expenditure account of trust is required to Shown as exempt income in ITR or not required?

Kindly please clarify.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2016 1 Fund maintenance charges to be reimbursed by the company hence show gross.
2 Yes show it as exempt income.

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2016 THANKS FOR REPLY,

1. FUND MAINTENANCE CHARGES NOT REIMBURSED BY COMPANY , COMPANY ONLY PAY PREMIUM AMOUNT TO LIC.
2. AND I.E. INTEREST E.G RS. 10 LAC AND CONTRIBUTION TO LIC DURING THE YEAR 90 LAC BOTH SHOWN AS EXEMPT INCOME?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 July 2016 Yes that is OK.................

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2016 Dear Sir, Can you provide in which section or rule Contribution made by the company is treated as income of the Trust and also section in which such contribution is exempt.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 July 2016 Section 10 (25)(iv)..................

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2016 Dear Sir,

Section 10 (25) (iv) language is "any income received by the trustees on behalf of an approved gratuity fund"

Is income include contribution also is not clearly mentioned here..

Kindly please solution....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 July 2016 Income include contribution also.

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