Deduction of 15% u/s 11 in case of trust for hp income
This query is : Resolved
Jyoti jain
(Querist)
29 August 2013
In case of a trust, let HP income is Rs. 2,00,000/-, and standard deduction is Rs. 60,000. Now, 15% will be set aside under section 11. This 15% will be calculated on 2,00,000 or 1,40,000.
29 August 2013
Deduction u/s 11 is 15% of Rs. 1.40 lakhs.
Jyoti jain
(Querist)
29 August 2013
sir, can you give me the reference of your answer.
29 August 2013
Dear Jyoti,
According to me,A Trust is governed by an altogether separate chapter in the income tax act, consisting of sections 11-13.
Also, it is not subject to the heads of income as given under section 14.
Hence, there is no question of section 24 being applicable to it.
hence, the 15% will be calculated on 2,00,000 and not on 1,40,000 since the deduction u/s 24 is not allowable and also, sections 11-13 do not speak of this deduction
According to me,A Trust is governed by an altogether separate chapter in the income tax act, consisting of sections 11-13.
Also, it is not subject to the heads of income as given under section 14.
Hence, there is no question of section 24 being applicable to it.
hence, the 15% will be calculated on 2,00,000 and not on 1,40,000 since the deduction u/s 24 is not allowable and also, sections 11-13 do not speak of this deduction
Jyoti jain
(Querist)
29 August 2013
u mean section of section 24 will not be available?
29 August 2013
Yes...since there is an altogether different chapter governing a trust.
Also I have sent you a Pvt Msg in this connection...Pls have a Look
Also I have sent you a Pvt Msg in this connection...Pls have a Look
30 August 2013
The term used in section 11 (1) is 'total income'.
Therefore, the term used in section 11(1)(a) viz., 'such income' should be understood as 'total income'.
Hence, the total income being Rs. 1.40 laks, 15% thereof can be claimed as deduction u/s 11.
Therefore, the term used in section 11(1)(a) viz., 'such income' should be understood as 'total income'.
Hence, the total income being Rs. 1.40 laks, 15% thereof can be claimed as deduction u/s 11.
30 August 2013
But Sir, this deduction is given under section 24. And since a trust is guided by 11-13, there is no question of 24 being applicable…infact, even the heads of income do not apply to a trust…so there is no way 24 can apply. Moreso, in the computation of the trust, there is no bifurcation for each head of income
This the main reasn why there have been litigations on the claim of depreciation on assets. Had this not been the case, 32 would have been straight away be allowed by the ITO
This the main reasn why there have been litigations on the claim of depreciation on assets. Had this not been the case, 32 would have been straight away be allowed by the ITO
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