Clause 60 - Insertion of new Chapter XII-EB- Tax on accreted income-Interest payable for non-payment of tax by trust or institution - When trust or institution is deemed to be assessee in default
Finance Bill, 2016 Chapter III DIRECT TAXES
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Tax on accreted income: trusts face an additional charge on asset surplus with payment, interest, and default consequences. A new charge taxes the excess of a trust's or institution's aggregate fair market value of assets over liabilities as on the specified date (conversion, ... Summary
Tax on accreted income: trusts face an additional charge on asset surplus with payment, interest, and default consequences.
A new charge taxes the excess of a trust's or institution's aggregate fair market value of assets over liabilities as on the specified date (conversion, merger or dissolution) at the maximum marginal rate, payable by the trust and its principal officer/trustee within fourteen days of specified triggers; transfers made within the permitted period on dissolution are excluded, the tax is final with no further credit or deductions allowed, and interest and deemed assessee-in-default rules apply on non-payment.
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