Beware of Most Dangerous Tax Amendment For Charitable Society !

One of my clients is a charitable society having more than twelve various activities like schools, charitable clinics, naturopathy centres, creches, old age homes, pension for widows, library, Masala Centre where various spices are prepared by poor ladies. Spices prepared by these ladies are sold over the counter which results in some income to the [...]

When Is A Trust Not Liable To Deduct Tax at Source ?

Whether tds should be deducted on rent paid by charitable trust to a hotel management , guest house or not. Sanjay , Kolkata
The provision for tax at source on payment of rent is given in section 194 I of the I T Act. The opening sentence of the said provision is as under :
194-I. [...]

How To Form A Charitable Society & Get Registered With Income Tax Department?

Want to do some charity or philanthropy in a group? A society registered under Society Registration Act and then getting the registration with Income Tax Department is perfect vehicle of charity and philanthropy. A society for the relief of poor, education,medical attention and advancement of any other object of general public utility [...]

Can Trust Be Created By Transferring Income From Property And Not The Property ?

Is it possible that assets remain under my name but the income received is transferred to the trust and taxable in trust name? Ranjan Gumnani
Creation of trust by transfer of income of a property and not the property is possible , but it will not give any tax benefit because section 60 of the I [...]

How To Tax Plan Through Private Trust?

The central point of tax planning is to have more tax entities. Each entity gets basic exemption from tax which in aggregate exempts quite a substantial amount of income from tax. When you create a private trust,what you are doing is creating a separate tax entities. Following points should be kept in mind to minimise [...]

How A Private Trust Taxed?

A private trust can have one trustee or more than one trustee who  are  treated as "representative assessee" for the purpose of assessment of the private trust .Representative Assessee is defined u/s 160(1)(iv) and 160(1)(v) of the I T Act.
As per section 161(1) ,  trustee or trustees are taxed as if  it is their income [...]

How A Private Trust Can Help Your Daughter,Handicapped Dependent or Wife ?

India live in families. We remain concerned about the family members . The question remain foremost important in ones mind what happens after one’s demise.In many unfortunate circumstances like below , one’s concern is very real……
A daughter or son in the family paralysed and completely handicapped.
Son is busy with his own family and has no [...]

How To Get Registartion U/s 80G ?

We have recently (April 08) formed NGO (Voluntary Consumer Organisation) and got registered with Sub Registrar VI A Delhi.Now we want to get it registered with Income Tax for 80 G exemption. What are the formalities and what is time period taken for giving permission? S. P Manchanda, New DelhiThe procedure of getting approval under [...]

How To Create Charitable Trust ?

Income Tax Act has specific provisions for exempting income of a charitable trust and also giving deduction u/s 80G to persons giving donation to approved charitable trusts.The process of setting  up a charitable trust , there fore , has two steps:

Registering a Trust deed with registering authority.

Applying before Commissioner of Income Tax for registration [...]