Nikhil Kalra (CS Final Student) (85 Points)
28 September 2011One Section 25 Company made a fixed deposit in a bank and earned an interest from that deposit now my question is that weather they require to pay income tax on that income if yes then under which section or if not then why............
Plz clarify as early as possible............. its urgent
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 18 November 2011
As per the provisions of section 10(23BBA) of the IT Act, 1961,
any income of any body or authority (whether or not a body corporate or corporation sole) established, constituted or appointed by or under any Central, State or Provincial Act which provides for the administration of any one or more of the following, that is to say, public religious or charitable trusts or endowments (including maths, temples, gurdwaras, wakfs, churches, synagogues, agiaries or other places of public religious worship) or societies for religious or charitable purposes registered as such under the Societies Registration Act, 1860 (21 of 1860), or any other law for the time being in force:
Provided that nothing in this clause shall be construed to exempt from tax the income of any trust, endowment or society referred to therein;
Hence I think that the income from FD would be exempt under the said section of teh IT At.
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