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What happened if a trust is failed to used its 85% income for charitable purpose under income tax act?
Where 85% of the income is not applied for charitable purposes, the NGO is required to accumulate or set apart such income for future application. The incomes so accumulated will not be included in the total income of the NGO if the following conditions are applied: Such trust or institution furnishRead more
Where 85% of the income is not applied for charitable purposes, the NGO is required to accumulate or set apart such income for future application. The incomes so accumulated will not be included in the total income of the NGO if the following conditions are applied:
- Such trust or institution furnishes Form No. 10 – notice of accumulation of income by charitable trust or institution electronically to assessing officer, on or before the due date for filing the return of income.
- Mention the purpose for which income is being accumulated or set aside.
- Income shall not be accumulated for more than 5 years and years in which income accumulated or set aside due to order or injunction of any court to be excluded in computing 5 years.
- Money so accumulated or set aside is invested or deposited in specified mode as mentioned under section 11(5).
See lessWhat is the procedure for a trust to getting registered with commissioner of income tax?
To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necRead more
To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necessary documents.
See lessWhich loss can be carry forward under income tax act?
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Following losses can be carried forward under the iRead more
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years.
Following losses can be carried forward under the income tax act 1961
Losses from House Property
Losses from Non-Speculative Business (Regular Business) Loss
Speculative Business Loss
Specified Business Loss under 35AD
Capital Losses
Losses from owning and maintaining race-horses
See lessFor how many years losses can be carry forward under the income tax act?
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Carry forward of losses Losses from House PropertyRead more
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years.
Carry forward of losses
Losses from House Property :
It Can be carried forward up to the next 8 assessment years from the assessment year in which the loss was incurred and Can be adjusted only against Income from house property
Losses from Non-Speculative Business (Regular Business) Loss
It Can be carried forward up to the next 8 assessment years from the assessment year in which the loss was incurred and Can be adjusted only against income from business or profession. It is not necessary to continue the business at the time of set off in future years.
Speculative Business Loss
It Can be carried forward up to the next 4 assessment years from the assessment year in which the loss was incurred and Can be adjusted only against income from speculative business. It Cannot be carried forward if the return is not filed within the original due date.
Specified Business Loss under 35AD
It Can be adjusted only against income from specified businesses under 35AD. There is No time limit to carry forward the losses from the specified business under 35AD. It Cannot be carried forward if the return is not filed within the original due date.
Capital Losses
It Can be carried forward up to the next 8 assessment years from the assessment year in which the loss was incurred. Long-term capital losses can be adjusted only against long-term capital gains. Short-term capital losses can be set off against long-term capital gains as well as short-term capital gains.
Losses from owning and maintaining race-horses
It Can be carried forward up to the next 4 assessment years from the assessment year in which the loss was incurred and Can only be set off against income from owning and maintaining race-horses only.
See lessCan the premium be claimed u/s 80C by married daughter in her return if LIC premium paid by her father?
No, it cannot be claimed.
No, it cannot be claimed.
See lessWhat is the difference between 2A & 2B in GST Portal ?
Even though both the Form GSTR-2A and GSTR-2B reflects similar details, both the forms are different in various ways. The difference between both the forms is summarized hereunder- Type of statement- Form GSTR-2A is a form of a dynamic statement. The details of inward supplies vis-Ã -vis input tax crRead more
Even though both the Form GSTR-2A and GSTR-2B reflects similar details, both the forms are different in various ways. The difference between both the forms is summarized hereunder-
Form GSTR-2A is a form of a dynamic statement. The details of inward supplies vis-Ã -vis input tax credit will be updated on a continuous basis.
On the other hand, Form GSTR-2B is a form of a static statement. The details will be updated on a constant basis.
In the case of Form GSTR-2A, the details of the inward supplies will be reflected in the statement on a real-time basis.
In order words, the details will be updated as and when the supplier furnishes the details of outward supplies either in Form GSTR-1 or via using Invoice Furnishing Facility (i.e. IFF).
For example, the registered person while filing Form GSTR-1 for the month of January 2021 has failed to declare some supplies. The missed supplies were reflected by the registered person while filing Form GSTR-1 for the month of February 2021. Correspondingly, the details of such missed supplies will be reflected in Form GSTR-2A in the month of February 2021.
However, in the case of Form GSTR-2B, the details of inward supplies will be reflected in a static manner. It will reflect the details of outward supplies reflected by the supplier between two due dates of either Form GSTR-1 or Invoice Furnishing Facility.
For example, suppose the registered person furnishes the details of outward supplies for the month of January 2021 after the due date. In such a case, the corresponding details of inward supplies and the input tax credit will not be reflected in Form GSTR-2B in the month of January 2021.
Form GSTR-2A doesn’t provide bifurcation of eligible input tax credit and ineligible input tax credit. Whereas, Form GSTR-2B briefly bifurcates the eligible and ineligible input tax credit.
Form GSTR-2A collects/ complies data on the basis of returns filed by the supplier in Form GSTR-1; Form GSTR-5; Form GSTR-6; Form GSTR-7 and Form GSTR-8.
Whereas, Form GSTR-2B complies data from Form GSTR-1; Form GSTR-5 and Form GSTR-6 filed by the supplier.
See lessWhat is the Rate of GST in reverse charge supply?
The rate of tax to be used for the reverse charge supply is the rate that is applicable on such goods/services. GST Compensation Cess is also applicable on reverse charge. If the goods/services purchased in exempted or nil rated then no tax is payable under RCM. Composition dealers are required to pRead more
The rate of tax to be used for the reverse charge supply is the rate that is applicable on such goods/services. GST Compensation Cess is also applicable on reverse charge. If the goods/services purchased in exempted or nil rated then no tax is payable under RCM.
Composition dealers are required to pay reverse charge at normal rates (5%,12%,18%,28%) and not at the composition rates (1% or 5%).
See less