Trust
This query is : Resolved
ajit kumar jain
(Querist)
02 August 2012
a trust is alreday created by a settlor for his minor child by initially contributing in the TRUST.
He again wants to contribute in lacs to the trust . This amount than will be utilize for giving loans from the trust with interest.
My question is the taxability of the amount contibuted in the fund. again the interest income taxability in whose hands
a trust is alreday created by a settlor for his minor child by initially contributing in the TRUST.
He again wants to contribute in lacs to the trust . This amount than will be utilize for giving loans from the trust with interest.
My question is the taxability of the amount contibuted in the fund. again the interest income taxability in whose hands
Amol S Joglekar
(Expert)
02 August 2012
The trust is ENTITY under income tax. It will be taxed as AOP. The donation will go to income expenditure account. Interest income is taxed in the hands of interest earners. In your case TRUST is going to earn the interest. (The taxability of trust depends upon the determinate or indeterminate share of beneficiary.
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