Interest from FDR & interest received on loan is taxable income or exempted income? And can trust provide a loan to trustees or any other person?
Menu
Charitable trust
Replies (1)
Most of the interest are taxable u/s 56 i.e under "Income from Other sources" but their are certain interest which are exempted like intereset accrued on NSC is exempted and taxable on receipt only. FDR-int and Loan interest is not exempted as such unless it is a notified by Board or Finance Act.
Further a trust can provide Loan to other person including a trustee but the only problem is that the loan amount shall not be considered as application of money for calculation of "85% of total income/amount utilised for charitable purpose". (Please cross check this as I am not sure about this point. Till date i have not come across any provision which directly or indirectly prohibits "Loan to trustee".)
Recent Topics :
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
- ROC FILINGS FY2025-26
- Mismatch in 26AS
- How Can a Trader Utilise Approximately ₹1.20
- How Can Law Students Present Papers at Conferences
- On which amount 200% penalty under section 270A is
Related Topics :
CAclubindia
