Scribd Logo
Upload

Welcome to Scribd!

  • DT - One Page Summary - Accreted Tax (Exit Tax)

    Uploaded by

    Aruna Rajappa
    35 views1 page
    This document outlines the exit tax provisions under section 115TD of the Indian Income Tax Act. It provides that an exit tax will be levied in three situations: (1) when a trust/institution converts to a form not eligible for registration under section 12AA, (2) when a trust merges with an entity not having similar objects, and (3) when a trust fails to distribute assets upon dissolution to another trust registered under section 12AA or 10(23C) within 12 months. The exit tax is levied on the "accreted income" of the trust/institution at a rate of 34.944% and must be paid within 14 days of the specified date for valuation of assets and liabilities in each

    Original Description:

    Original Title

    DT - One Page Summary - Accreted Tax [Exit Tax] -

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines the exit tax provisions under section 115TD of the Indian Income Tax Act. It provides that an exit tax will be levied in three situations: (1) when a trust/institution converts to a form not eligible for registration under section 12AA, (2) when a trust merges with an entity not having similar objects, and (3) when a trust fails to distribute assets upon dissolution to another trust registered under section 12AA or 10(23C) within 12 months. The exit tax is levied on the "accreted income" of the trust/institution at a rate of 34.944% and must be paid within 14 days of the specified date for valuation of assets and liabilities in each

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    35 views1 page

    DT - One Page Summary - Accreted Tax (Exit Tax)

    Uploaded by

    Aruna Rajappa
    This document outlines the exit tax provisions under section 115TD of the Indian Income Tax Act. It provides that an exit tax will be levied in three situations: (1) when a trust/institution converts to a form not eligible for registration under section 12AA, (2) when a trust merges with an entity not having similar objects, and (3) when a trust fails to distribute assets upon dissolution to another trust registered under section 12AA or 10(23C) within 12 months. The exit tax is levied on the "accreted income" of the trust/institution at a rate of 34.944% and must be paid within 14 days of the specified date for valuation of assets and liabilities in each

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Sec 115TD - Tax on Accreted Income [Exit Tax] Tax Rate - MMR 34.

    944% (30+12+4)
    Specified Date for Pay Tax within 14 days from
    Taxable when Valuation of Note- Interest u/s 115TE @ 1% pm / part of month
    Assets & Liability. for non-payment of tax within 14 days.

    Iss date ko valuation


    3 condition me exit tax lagega Yaha pe tax pay karna hai
    Karna hai
    a. Conversion of trust / institution into a form
    not eligible for registration u/s 12AA
    Case 1 - Registration granted u/s12 AA has Date of order 14 days from
    been cancelled cancelling registration a) the period for filling appeal to ITAT against order
    u/s 12AA rejecting the application expires & no appeal filed by
    trust OR

    b) the order is any appeal confirming the rejection


    the application is recd. by trust.
    Case 2 - It has adopted or undertaken Date of adoption or i) Not applied - 14 days from end of P.Y.
    modification of its objects which do not modification of any
    conform to the conditions of regn. And objects ii) Applied but rejected - 14 days from
    a) the period for filling appeal to ITAT against order
    i) Not applied for fresh regn. rejecting the application expires & no appeal filed by
    trust OR
    ii) Applied but application has been b) the order is any appeal confirming the rejection
    rejected the application is recd. by trust.
    b. Merger into an entity not having similar Date of merger 14 days from the date of merger
    objects and registered u/s 12AA
    c. Non-distribution of assets on dissolution to Date of Dissolution 14 days from the date on which period of 12 months
    any other trust / institution reg u/s 12AA, (at the end of the month in which dissolution took
    10(23C) within 12 months from the end of the place) expires.
    month in which dissolution takes place

    Accreted Income Aggregate FMV (see Rule 17CB) of Total Asset xxx
    shall be computed on "specified date" Less - Total Liabilities of Trust (xxx)
    Accreted Income xxx
    Following assets & liabilities in respect of that assets shall not be considered in accreted income.
    a. Asset acquired out of agriculture Income. b. Asset acquired before registration

    Method of Valuation for the purpose of Sec 115TD Rule 17CB


    The aggregate FMV of Total Asset shall be reduced by : 1) TDS, TCS, Advance Tax and 2) Deferred Expenditure
    Part A- Assets
    1. Quoted Shares 3. Unquoted Shares / Security
    --> Average of Lowest Highest price on valuation date on a recognize stock (Other than Equity Shares):
    exchange --> FMV/NRV on Valuation bate on the
    Note: If No trading of such shares and security on valuation date then average of basis of valuation report of merchant
    Highest & Lowest price of immediately preceding the valuation date when such banker / accountant.
    shares and security traded in recognize stock exchange

    2. Unquoted Equity shares --> A+ B - L x (PV/PE) 4. Immovable Property


    A : Book Value of All Assets (other than Covered in B) exclude TDS, Advance Tax & --> Higher of the following
    deferred expenditure shown in the Asset side a. Open Market Value or
    B : FMV of bullion, jewellery, precious stone, artistic work, shares, securities & b. SDV
    immovable property as determined in the manner provided in this rule.

    L : Book value of liabilities, but not include 5. A Business Undertaking


    i) Paid-up capital in respect of equity shares ii) Amount set apart for payment of --> A+B-L
    dividends on preference shares and equity shares
    iii) Unascertained liabilities iv) Tax Provisions v) Contingent Liabilities
    6. Any Other Assets:
    PV : Total amount of paid up Eq Share capital as shown in the BS. --> FMV/NRV on Valuation bate
    PE : Paid up value of such equity shares

    Part B - Liabilities does not include : a. Capital Fund, Corpus Fund c. Contingent Liability
    b. Reserve and Surplus d. Income Tax, TDS, TCS liability

    DT(Final) Last Day Revision Notes - By Sanjay Zanwar, 9765974365, Telegram Channel @DT_LDR 1

    You might also like