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.

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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

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