Tax Incidence on Trusts

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Abhijit Gupta (Querist)
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25 June 2011 What is procedure of calculating the taxable income of a trust?What will be the impact of not applying 85% of its income on charitable purposes and accumulating the same??

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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25 June 2011 For accumulation of income you have to apply to the concerned A Officer in advance.

When 85% of income is not utilised, the same shall be taxed at the maximum rate of tax

Abhijit Gupta

Abhijit Gupta (Querist)
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25 June 2011 What will be the slab of income tax rates in case of Trusts? And if the trust applies 85% of income then on the rest of the income,at what rate tax will be charged?

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 June 2011 No slab It is direct 30%+3%.

For trust applying 85% of income for charitable trust No income tax

Abhijit Gupta

Abhijit Gupta (Querist)
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28 June 2011 Thank You Sir for your prompt reply.