Preface
It is a matter of immense pleasure to present a comprehensive treatise exclusively dealing with the subject of Trusts, NGOs, Societies, etc. from Income Tax as well as GST angle. A trust has always been an important tool for tax planning as it becomes a separate taxable entity from its settlor. Through creation of a trust, the settlor can transfer his social, family and religious commitments, or inclinations to the trust. Trusts are generally of two kinds, namely, public trusts and private trusts. A public trust is one which is constituted for the benefit of either public at large or a considerable portion thereof answers such description. All charitable trusts are public trusts as a matter of fact so much so that public trusts and charitable trusts may even be said to be synonymous. Under the Income Tax Act, sections 11 to 13 provide for special treatment to Public Charitable Trusts. As far as a private trust is concerned, same is also no less important as it has in its fold quite a large segment of assessees under the Income Tax Act. In case of private trusts, the beneficial interest is vested absolutely in one or more individual(s) who are, or within a certain time, may definitely be ascertained. This is so even though their activities may still be controlled by the settlor via the medium of trust by settling on trust properties to be passed on for beneficial interest to the beneficiaries. Private trusts may further be classified as specific trusts, discretionary trusts, family trusts, business trusts, etc. Under the Income Tax Act, sections 161 to 167 deal with the subject of private trust. Looking at the importance of the private trusts, the related subject has exhaustively been dealt with in the present Treatise. Further, the non-profit sector is increasingly gaining importance in India as of now as it supports and supplements the developmental work of government for the sake of common man, and does so much more efficiently and cost effectively than the government machinery itself. For this purpose NGOs are incorporated which may generally be in the form of a society, a trust, a company, a club, an association, an institution, or the like. This Treatise cannot be said to be complete if the subject of NGOs is not specifically included therein.
The provisions of sections 11 to 13 governing charitable trusts impose certain restrictions and conditions for availing of exemption from income tax. The government feels that such restrictions and conditions may hamper some of the imperative social objectives which matter most, hence it provides for total exemption to incomes of certain specified trusts, associations, institutions, funds, etc., through several sub-sections of section 10, the important ones being sub-sections (21), (23), (23A), (23B), (23C) and (24). The present book is a sincere attempt to cover all such provisions in significant detail, so as to provide justification to the title in hand.
The overall subject matter is accordingly divided into Eight Parts namely --
Part I : Trusts--Introductory; comprises 8 Chapters.
Part II : Treatment of Public Charitable Trusts; comprises 47 Chapters divided into Seven Sections A to G respectively, being : Section A : Charitable Purpose, Section B : Exemption to Charitable Trusts or Institutions, Section C : Income of Charitable Trust or Institution, Section D : Registration and Audit of Charitable Trust/Institution, Section E : Forfeiture of Exemption to Charitable Trusts/Institutions, Section F : Taxation of Charitable Trusts or Institutions, Section G : Preparation and Samples of Trust Deeds.
Part III : Trusts, Fund, Institutions Exempt Under Section 10(23C); comprises 20 Chapters divided into Four Sections A to D respectively, being : Section A : Trusts, Funds, Institutions Claiming Exemption under Section 10(23C)(iv)/(v), Section B : Exemption to Educational & Medical Institutions under Section 10(23C), Section C : Taxation and Audit of Charitable, Educational & Medical Institutions, Section D :
Part IV : Private Trusts; comprises 25 Chapters, divided in Four Sections respectively, being : Section A : Private Trusts and Taxation Thereof, Section B : Planning Via Private Trusts, Section C : Taxation of Private Trusts, Section D : Deeds and Conveyancing Relevant to Private Trusts.
Part V : NGOs, Societies, Clubs, Etc.; comprises 25 Chapters divided in Six Sections A to F, respectively, being : Section A : NGOs, Societies, Clubs, Etc.--Introductory, Section B : NGO As a Company, Section C : NGO As a Society, Section D : NGOs as Institutions Funds or Associations of Specific Nature, Section E : NGO as a Club, Section F : Tax Benefits to Donors or Contributors to NGOs.
Part VI : Certain Provisions Common to Charitable Trusts/Institutions/ NGOs, Etc.; comprises Two Chapters dealing with Applicable TDS Provisions and Mutuality Principle.
Part VII : Accounting by Trusts and Institutions; comprises Seven Chapters dealing with accounting methods, Accounting Standards and guidance notes relating to Accounting of Trusts and Institutions.
Part VIII : GST Implications Vis-a-Vis Trusts, Etc.; comprises Nine Chapters divided in Two Sections being : Section A : GST Background, Section B : GST on NGOs, Trusts, Societies.
Highly suitable classification of chapters and their appropriate grouping under various Sections of the book being so natural with us, helps a lot in achieving the objective of a committed authorship. The advantages derived gets multiplied several times by appropriate choices of headings and sub-headings running through the chapters which are backed up by well-suited type setting.
The result, the readers should naturally find, is a convincingly plain, simple, useful, practical, but sumptuously exhaustive Treatise on the subject inter alia of Charitable Trusts, Private Trusts, NGOs & Societies and Institutions Exempt Under Income Tax Act, all regarded as difficult topics under the income-tax law on account of the complexities and intricacies of the related provisions. We will consider ourselves lucky if this book takes away some of the pains and troubles of our readers locking horns with the assessing, appellate and judicial authorities on various intricate issues concerning Trusts of all sorts.
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JODHPUR |
Dr. AVADHESH OJHA |
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1 JANUARY, 2019 |
CA. (Dr.) NISHA BHANDARI |
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CA. SATYADEV PUROHIT |