Charitable Trust or Institute

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ajay goyal (Querist)

14 January 2011 Please tell me under which head income of educational institutions is taxable.
Whether under "Profit & gains from business & Profession" or under "Income from Other sources"

Thanks & Regards,
Ajay
CA.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 January 2011 Since running an Educational Institution is only possible with the help of professionals, educating people is a profession, persons studying there are would be businessmen or professionals (and to run such institutions have become a business, nowadays) it would be taxed under the head-

"Profits and Gains from Business or Profession."

The answer is based on the assumption that it's a private educational institution and not registered as Trust.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

14 January 2011 "Profits and Gains from Business or Profession."

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

14 January 2011

Taxable under Income from other sources because educational trust ( i.e. charitable trust) are never created to run for profit and gains.

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Due to this; the charitable trusts are out of purview of Tax Audits.

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Message likes : 2 times

ajay goyal

ajay goyal (Querist)

15 January 2011 Dear Professionals,

Thanks a lot.
May god bless you all.

Regards,
Ajay
CA

ajay goyal

ajay goyal (Querist)

22 January 2011 Dear Sir,
This is to ask that "IS THERE ANY CASE STUDY (OR) WRITTEN ANYWHERE IN ACT/LAW SUPPORTING THAT CHARITABLE TRUSTS ARE OUT OF PURVIEW OF TAX AUDITS."
Please give your valuable reply as soon as possible.
Eagerly Waiting.............

Thanks & Regards,
Ajay
CA.

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