Electoral trust

This query is : Resolved

CA Shelly Singhania (Querist)
Follow

18 February 2010 As per new amendment electoral trusts approve by CBDT are allowed exemption U/s 13B if, such trust distributes to any political party, during the said P.Y, 95% of the aggregate donations recd. by it during the said P.Y along with the surplus,if any, b/f 4m any earlier P.Y's.

Now suppose the trust recd. Rs.10 crores as donation & int. on bank a/c Rs.40 lacs in P.Y 2009-10. In same P.Y i.e 2009-10 it distributes Rs.9 crores to a political party. What will be the tax treatment?
If in the next yr. the trust receives Rs.20 crores as donations, then the calculation of 95% will be on what figure i.e Rs.20crores or Rs.21crores or any other figure.

PLZ REPLY AS SOON AS POSSIBLE.
THANK YOU.

shrikant

shrikant (Expert)
Follow

18 February 2010 Dear Shelly

If you read section 13B, it's clearly states that 95% of amount of P.Y voluntary contribution + b/f amount. Hence in you case it is 95% of Rs.21 crores. It not includes bank interest as it is not voluntary contribution.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vignesh Pai

avulaandcopdrl 2023

Joyashish Maitra

Sreerama Reddy

Jagadeesh GR

Subscribe Now

Electoral trust

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA