Saturday, January 31, 2015

Property held under Trust Partly For Religious Purposes And Partly For Other Purposes

Property held under Trust Partly For Religious Purposes And Partly For Other Purposes

In case where the property is held under trust partly for religious purposes and partly for other purposes and the individual share of the beneficiaries in the income applicable to purposes other than charitable purposes, is not known, the tax chargeable shall be the aggregate of :-
  1. the tax on that part of the relevant income which is applicable to charitable or religious purposes, as reduced by the amount exempt under section 11 as if the resultant income was the total income of an association of persons; and 
  2. the tax on that part of income which is applicable to purposes other than charitable or religious and in respect of which shares of beneficiaries are indeterminate or unknown, at the maximum marginal rate of tax.
Tax liability will be calculated in accordance with clauses (a) and (b) given above in all cases except the given conditions specified for maximum marginal rate as not applicable.
Note:— Vide Circular No. 6/2012, [F. No. 133/44/2012-SO (TPL), Dated 3.08.2012 — Relaxation from compulsory e-Filing of return of income for AY. 2012-2013 representative assessees of non-residents and in the case of Private disctionary trusts.