Private trust taxability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2014 In case when there is specific trust not having any income from PGBP.
Then there are 2 options available-
1- That beneficiary(s) pays tax applying there own individual slab rate (In my case beneficiaries are mentally challenged & hence not possible. or
2- That trustee(s) pays tax on the income of trust applying each beneficiary's tax slab & hence each beneficiary shall be assessed.

In just above line the word "Assessed" what means? Because my CA is saying that it means that beneficiary shall file ROI.
& in my opinion it means only a saprate computation & not filing of ROI.
Please tell who is correct?

Amol S Joglekar

Amol S Joglekar (Expert)
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06 November 2014 "assessed" has always been construed as being assessed by Income Tax Department. And Income Tax Dept can not assess an assessee unless the assessee has filed the return. (Exception is third party assessment by the income tax department) So? In normal course, file the return

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 then what shall happen in my case, the beneficiaries are are unable to file their ROI because they are mentally challenged. Whether the trustees can file the ROI on their's behalf, & beneficiaries will not be assessed.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 November 2014 yes, you can file it under REPRESENTATIVE assessee option.

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