Trust
This query is : Resolved
03 October 2013
The XYZ Trust established and formed in the year 1980 to promote and popularized renewable source of energy as clean energy alternatives that are Techno- economically viable and society acceptable. The Trust is registered u/s. 12A under Income tax Act and also with Bombay Charitable Trust Act.
The Trust is having mainly two activities. First is to promote and popularize renewable source of energy and second one is separate unit to develop and promote energy resources, which is business unit. The Books of accounts of business activities are separately maintained and the nature of business is purely incidental to main object of the trust.
During the FY 2012-13, The Trust has received around 50 Crores towards grant and subscription from the different entities and further earned around Rs. 7 Crore from the business activities carried out by them. Out of which the trust has applied the amount of Rs. 55 Crore for the charitable purpose (as above) during the financial year.
1. What would be taxable income for the purpose of Income tax Act?
2. Whether the trust can opt-the option U/s 11(1)(a) to set aside 15% for the purpose of future activities????
The Trust is having mainly two activities. First is to promote and popularize renewable source of energy and second one is separate unit to develop and promote energy resources, which is business unit. The Books of accounts of business activities are separately maintained and the nature of business is purely incidental to main object of the trust.
During the FY 2012-13, The Trust has received around 50 Crores towards grant and subscription from the different entities and further earned around Rs. 7 Crore from the business activities carried out by them. Out of which the trust has applied the amount of Rs. 55 Crore for the charitable purpose (as above) during the financial year.
1. What would be taxable income for the purpose of Income tax Act?
2. Whether the trust can opt-the option U/s 11(1)(a) to set aside 15% for the purpose of future activities????
04 October 2013
Nothing should be taxable in your case.
1. the purpose of ur trust is charitable as per the definition under section 2(15) of the Act.
2. You have utilised more than 85% of the total inflows for charitable activities. So where does the question of setting the funds aside arose?
1. the purpose of ur trust is charitable as per the definition under section 2(15) of the Act.
2. You have utilised more than 85% of the total inflows for charitable activities. So where does the question of setting the funds aside arose?
04 October 2013
Sec 2(15)- advancement of any other object of general public utility shall not be a charitable purpose, if it is involves the carrying on of any activity in the nature of trade, commerce or business.
Please sir can u explain in detail....
Please sir can u explain in detail....
04 October 2013
Hi Dilip,
In my opinion you will get covered under "preservation of environment" and not under any other object of general public utility.
In my opinion you will get covered under "preservation of environment" and not under any other object of general public utility.
04 October 2013
client having wind mill business and generation power
whether it is covered under " preservation of environment" please advice me sir...
whether it is covered under " preservation of environment" please advice me sir...
04 October 2013
already messaged u
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