Private Trust

1. What is a Private Beneficiary Trust?

2. What is a Specific Trust?

3. What is a Discretionary Trust?

4. What is the Status of a Private Beneficiary Trust?

5. In PAN Application, what is the status to be mentioned?

6. While filing the Income Tax Return, whether the Status has to be mentioned as Trust, AOP or Individual?

7. When can a Private Beneficiary Trust be taxed as an Individual?

8. When can a Private Beneficiary Trust be taxed as an A O P?

9. When can a Private Beneficiary Trust be taxed at Maximum Marginal Rate (MMR) ?

10. Filing Return of Income: Which form to be used?
ITR – 2, 4, 5, 7
i) I T R - 2: For Individual and HUF’s not having Income from a Business or Profession
ii) I T R - 4: For Individual and HUF’s having Income from a Proprietary Business or Profession
iii) I T R - 5: For Firms, AOPs and BOIs
iv) I T R - 7: For persons including companies required to furnish return under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D)

11. Trust for Benefit of Spouse: Sec 64(1)(vii)

12. Trust for Benefit of Son’s Wife: Sec 64(1)(viii)

13. What is an Accumulation Trust?

14. In case of accumulation trust, What is the treatment for Amount utilized towards Education, Medical and Other Expenses for the beneficiary?

15. While filing the Income Tax Return, whether the Basic Exemption Limit is Available?

16. In case Basic Exemption is Available, whether it is dependent on the Beneficiaries being Male or Female?

17. Whether Sec. 80C deduction is available for a Private Beneficiary Trust?

18. Whether the benefit of Tax in case of LTCG and STCG is available in case of Beneficiary Trust?

Ref.: CPE meeting by CA Sunil Sethia at SIRC premises, Chennai on 30-Dec-09