Electoral trust
This query is : Resolved
CA Shelly Singhania
(Querist)
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.
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.
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.
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.
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