FAQs ON TRUSTS AND RELATED INCOME TAX ISSUES

Just click the relevant question below

1. What is a trust?
2. How are the trusts normally created?
3. What is the tax treatment of the income of the private religious trusts and public religious trusts?
4. What is the distinction between a public trust and a private trust?
5. What is meant by accumulation of funds by trusts?
6. What is the procedure of obtaining permission for accumulation of funds under the Income Tax Act?
7. What incomes are not included for computation of taxable incomeof a trust/ society?
8. Whether the amount donated to other charitable trusts shall be considered for arriving at the amount spent for charitable purposes within the meaning of sec. 11(1)(a) of the I.T. Act, 1961?.
9. Please define the significance of the word Corpus from the viewpoint of Income Tax provisions.
10. How does a trust or institution create a Corpus?
11. What are the consequences in case the society/ trust or the institution does not avail the registration under the Income Tax Act?
12. What is the correct treatment of accounting  for the grants with specified end objectives received from the donor agencies (from the Income Tax angle)?
13. Whether the society/ Trust can adjust the deficit from the previous year against the funds received during the year for the purpose of computing the quantum of application of funds u/s 11(1)(a) of the I.T. Act?
14. What are the powers of the Commissioner of Income Tax relating to the registration of the trusts?
15. What are the requirements to claim the tax exemption in case of the income from the business run by a trust?
16. What is a religious endowment and whether it can be a private religious purposes?
17. What is a public temple and how it is different from the Private temple?

CA. Mukesh Saran