Application of income on cash basis in the case of trusts from A Y 2022-23
This query is : Resolved
05 September 2023
As per Budget 2022 amendments in the income tax law, for the purpose of filing income tax returns in the case of trusts, application of income shall be allowed on cash basis only. Thus amount of application shall be considered only if it is actually paid irrespective of the year in which liability arises. These provision of amendment is applicable since Assessment Year 2022-23.
Suppose in earlier years the expenses are booked on mercantile / accrual basis and payment of creditors are made in the current year. In such cases, whether the payment to creditors will be treated as applicaiton of income for the purpose of filing income tax return. Also deficit not allowed to carried formwad. in such case what will be treatment of brought fporward deficit. Kinldy advise us
Suppose in earlier years the expenses are booked on mercantile / accrual basis and payment of creditors are made in the current year. In such cases, whether the payment to creditors will be treated as applicaiton of income for the purpose of filing income tax return. Also deficit not allowed to carried formwad. in such case what will be treatment of brought fporward deficit. Kinldy advise us
21 January 2024
Q-whether the payment to creditors will be treated as applicaiton of income for the purpose of filing income tax return = YES
https://taxguru.in/chartered-accountant/application-funds-trust-actual-payment-basis.html
https://taxguru.in/chartered-accountant/application-funds-trust-actual-payment-basis.html
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Lease agreement and tax on sale
- Subscription paid to foreign customer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
