TMI BlogSpecial Provisions Relating to Tax on Accreted Income of Certain Trusts and Institutions - Section 115TD to 115TFX X X X Extracts X X X X X X X X Extracts X X X X ..... ed u/s 12AA/12AB or 10(23C) Non-distribution of assets on dissolution to any other Trust/Institution registered u/s 12AA/12AB or 10(23C) within 12 months from the end of the month in which dissolution takes place. then , in addition to the income tax chargeable in respect of the total income of such trust or institution, the accreted income of the trust or institution as on the specified date shall be charged to tax and such trust or institution . The Accreted Income of Trust/Institution registered/approved u/s 12AA/12AB (w.e.f. 01.04.2021) or 10(23C) shall be taxable at the marginal rate on the accreted income. [ MMR i.e. 39.44% (30%+12%+4%) ] Specified Date Means i.e. Date of Valuation of Assets Liability Conversion of Trust/Institution i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 10(23C), the benefit of sections 11 and 12, or section 10(23C)(iv)/ (v)/ (vi)/ (via) have been allowed to the specified person in respect of any previous year or years beginning prior to the date from which the registration under section 12AA or section 12AB or approval under section 10(23C) is effective, then, for the purposes of clause (ii) of the first proviso, the registration or approval shall be deemed to have become effective from the first day of the earliest previous year. While computing the accreted income in respect of a case referred to in section 115TD(1)(c), assets and liabilities, if any, related to such asset, which have been transferred to any other specified person within the period specified in the said clause, shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii), within the period specified, which expires in the said previous year. [Amended by FA, 2023]. [Section 115TD(3)] Section 115TD(4) : Tax on Accreted Income (Exit Tax) shall be payable even if no income tax is payable by the Trust/Institution. Section 115TD(5) - Time limit for payment of tax on accreted income Period within which exit tax has to be paid to central govt. tax has to be paid to central Govt within 14 days from Case I: Conversion of Trust/Institution into non-eligible form Registration granted u/s 12AA/12AB/10(23C) has been cancelled. 14 Days from the date on which a) the period for filling appeal to ITAT against the order cancelling the registration expires No appeal has been filed by Trust/Institution. Or b) The order in an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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