Taxation of private specific trust

Darshan Pankaj Thakkar (no) (39 Points)

26 September 2016  

1. As per my understanding, Private Trust is governed by Indian Trust Act. It is just an obligation and not a separate legal entity. Please help me to understand whether Private Trust is a separate legal entity?

2. When the Author of the trust transfer the property to trustee under a irrevocable Private Specific Trust, is there a requirement of paying Stamp Duty / Registration Fees? Registration will happen on whose name, Trustee or the Trust?

3. How much stamp duty is payable for registering a Trust Deed?

4. If the trust property is being let out and the Tenant is liable to deduct TDS on the rent, with whose PAN is that TDS needs to be deposited? Trustee or Trust?

5. How will the income from the trust property be taxed if Beneficiary has its own source of income which is exceeding Basic Exemption Limit?

6. Will the taxation differ if the Private trust so created is Accumulated Trust? 

7. Will there be Capital Gain when the object of the trust is achieved and the trust property is transferred to the beneficiary?