Allowance of standard deduction u/s 24(a), deduction for actual ...

Charitable trust's rental income taxability: No standard deduction, allow actual repairs, reject accumulation deduction.

Case Laws Income Tax

September 6, 2024

Allowance of standard deduction u/s 24(a), deduction for actual repairs, and deduction of accumulated income u/s 11(2) in the case of a charitable trust claiming exemption u/s 11. The Tribunal held that standard deduction of rental income at 30% u/s 24A cannot be allowed while computing income eligible for exemption u/s 11. Regarding actual repairs, the AO was directed to allow deduction for actual repairs and maintenance expenditure incurred before arriving at income available for accumulation u/s 11(2) or taxable income. Concerning accumulation u/s 11(2), the assessee failed to provide details on availability of funds for specified investments u/s 11(5), and the Tribunal rejected the ground for accumulation deduction. The summary covers the critical issues using relevant legal terminology in a concise manner.

View Source

← Previous Next →

Allowance of standard deduction u/s 24(a), deduction for actual ...

Charitable trust's rental income taxability: No standard deduction, allow actual repairs, reject accumulation deduction.

Case Laws Income Tax

September 6, 2024

You may also like:

Exemption u/s 11 - renal income - standard deduction @30% vs actual expenditure - once income of a trust/institution is computed u/s 11, whatever income derived from the...

The Appellate Tribunal considered whether the assessee, a trust registered u/s 12AA, qualified for exemption u/s 11 as a charitable entity. The AO argued the trust's...

The Income Tax Appellate Tribunal (ITAT) examined the taxability of income from a discretionary trust u/s 164(1) read with clause (ii) of Explanation 1 to Section 164 of...

Disallowance of deduction u/s 80P - Addition in respect of rental income earned and Income from sale of crackers - The Tribunal held that the deduction u/s 80P is...

Exemption u/s 11 - registration u/s 12A withdrawn - the donee trust will treat the donation as towards its corpus and can only utilise the accruing income from the...

Income earned by a housing cooperative society from interest on fixed deposits and rental income is eligible for set-off against maintenance expenses. The interest...

PCIT's view that section 36 allows deduction only for bad and doubtful debts, not for provision on standard assets, was challenged. AR presented case laws allowing...

Charitable Trust - if commercial principles are applied then adjustment of expenses incurred by the trust for charitable religious purpose in the earlier years against...

The High Court examined various issues concerning the calculation of deduction u/s 80IC, eligibility for the deduction, disallowance of royalty payments, and treatment...

Deduction u/s. 32AB - rental income - The court analyzes the definition of "eligible business or profession" under Section 32AB(2)(i) and determines that it encompasses...

Rental income earned by assessee should be assessed as income from house property, not business income. AO failed to highlight aspects indicating rental income was...

Total income u/s 2(45) versus Income u/s 11(1) - charitable institution - benefit of standard deduction under income from house property for the purpose of accumulation...

Co-operative Housing Society declared income from maintenance charges under 'Income from other sources' with deficit of Rs. 13,86,671/-. Rental and interest income also...

Reopening of assessment u/s 147 - Assessment of trust - There is a direct live link between the rental income received by the trust and the income shown by the...

Disallowance u/s 43B on account of GST remaining unpaid - Facts relating to the issue need to be determined and verified in the first place, including amongst other...

Quick Updates: