banner_ad

Taxation of private trust

Tax queries 1108 views 1 replies

Hi, A private trust is created by will having corpus as shares of a private limited company, the beneficiaries are public charitable trusts. The private trust is receiving dividend income & bank interest. please let us know the taxation of the trust.

Replies (1)

he dividend of course is exempt in the hands of the trust.

For the non exempt income, First check whether the shares of the bebeficiaries are determinate.

if yes any net income, upto minimum not taxable will be exempt and the balance will be taxed at normal slabs.

If the bebficiaries share is not determinate, then any surplus over the miniumum chargeable to tax will be taxed at 30.9%

It would be better for the trust to get itself registered under section 12A since the beneficiaries are Public Charitable trusts. ( You may want to check the other objectives of the trust also)

If u get registered then no amount will be taxable if you distribute or use 85 % of gross income to the beneficiaries


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details