Hamirpur: Chartered accountants discuss new provisions in taxing trusts

Hamirpur, May 5

According to new provisions, corporate taxations has changed in many forms and chartered accountants must read and understand the latest provisions to keep them updated for best practices.

This was stated by chartered account Rajiv Sharma while addressing a conference of chartered accountants on Taxation and Return Filing of Non Profitable Organisations here.

He said major changes were made in giving tax relief to trusts. When a trust is registered, the registration is done provisionally for period of three years for tax relief and after satisfactory working, the Income Tax Department allows it for a maximum period of five years under the new regime, he added, noting that, earlier, trusts were issued lifelong registrations.

Sharma talked about the difference between section 12A and 12AA of the Income Tax Act. He said the primary difference between the sections was that the former provided clauses for the applicability of both Section 11 and 12. However, Section 12AA dealt with how to get registered under Section 12A.