(READ FULL STORY ON BUDGET 2011-12) Print your Salary Statement HERE
(MAJOR HIGHLIGHTS OF UNION BUDGET 2011-12) For Slab rates F/Y 2011-12 Click Here
(MAJOR HIGHLIGHTS OF UNION BUDGET 2011-12) For Slab rates F/Y 2011-12 Click Here
Finance Bill 2011-12 has extended tax relief on its income from business activity up to Rs 25 lakhs. This tax relief has been brought by changing 10 lakhs to Rs 25 Lakhs .
Any income of trusts from activity for charitable purpose is exempt under the I t Act. “Charitable purpose” has been defined in section 2(15) which, among others, Indian income tax laws exempts income of charitable trusts. That the tax lawyer and tax attorney have always treated the provision of trusts under I T Act as a tool for saving on tax is debatable. But the government of India , by Finance Act 2008 expanded the definition “Charitable purpose “ from two lines to two paragraph . And the to the utter sadness of tax lawyers , activity in nature of trade or commerce or business was defined as job not for a charitable purpose. Thus the position of income from such activity became taxable. Previously, it was fully exempt.
Government then heeded the demand of various stakeholder and inserted vide Finance Act 20010 a clause that the trusts having receipt up to Rs 10 lakhs from activity in nature of trade or commerce shall still qualify for the activity for charitable purpose. This amendment was made effective from 01/04/2009
“the advancement of any other object of general public utility” shall continue to be a “charitable purpose” if the total receipts from any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business do not exceed Rs.10 lakhs in the previous year.”
Now the Finance Bill has extended this tax relief to charitable trusts having income on account of activity in nature of trade or commerce to the extent of Rs 25 Lakhs.
Any income of trusts from activity for charitable purpose is exempt under the I t Act. “Charitable purpose” has been defined in section 2(15) which, among others, Indian income tax laws exempts income of charitable trusts. That the tax lawyer and tax attorney have always treated the provision of trusts under I T Act as a tool for saving on tax is debatable. But the government of India , by Finance Act 2008 expanded the definition “Charitable purpose “ from two lines to two paragraph . And the to the utter sadness of tax lawyers , activity in nature of trade or commerce or business was defined as job not for a charitable purpose. Thus the position of income from such activity became taxable. Previously, it was fully exempt.
Government then heeded the demand of various stakeholder and inserted vide Finance Act 20010 a clause that the trusts having receipt up to Rs 10 lakhs from activity in nature of trade or commerce shall still qualify for the activity for charitable purpose. This amendment was made effective from 01/04/2009
“the advancement of any other object of general public utility” shall continue to be a “charitable purpose” if the total receipts from any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business do not exceed Rs.10 lakhs in the previous year.”
Now the Finance Bill has extended this tax relief to charitable trusts having income on account of activity in nature of trade or commerce to the extent of Rs 25 Lakhs.
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