Trust accounting and taxation were the focus of an interface at a workshop on exemptions organised by the Income Tax Department and Sastra University for the benefit of Not-For-Profit organisations here on Friday.
“Charity is older than taxes,” pointed out R.S.V.S. Pawan Kumar, Commissioner of Income Tax (Exemptions) for Tamil Nadu and Puducherrry, in his address at the workshop. He dealt with law relating to charities, circulation of compliance questionnaire and registration of trusts. Mr. Pawan Kumar advised Not-for-Profit organisations to evolve systems of monitoring and control for internal purposes to ensure smooth compliance.
He laid emphasis on the guiding nature of the trust deed and the importance of filing annual returns. He pointed out that both Sec. 12 A and Sec. 80 G of the Income Tax Act, 1961 provide for a double benefit for exempted NPOs, which could be availed.
A. Ananda Kumar, Deputy Commissioner of Tax (Exemptions), Coimbatore, made an elaborate analysis of laws relating to objects of trusts, benefit to specified persons and accreted incomes.
The seminar attracted more than 300 representatives from NPOs, officials and chartered accountants from across the State. The seminar was organised as a forum for Not-For-Profit organisations to address queries and concerns relating to their annual taxes with the Income Tax Department.
The workshop saw deliberations relating to trust laws, procedural aspects and compliance regulations. Technical sessions touching upon substantive and regulatory aspects of accounting and treatment of incomes, donations and corpus funds, withdrawal and cancellation of registration of trusts, taxation of net wealth as accreted incomes were organized, along with a Queries session, where the participants were grouped for conveying their concerns and enriching their understanding relating to taxation of trusts.
M. Kandasami, Chartered Accountant and Chief Resource Person, gave a presentation on fundamental aspects of trust accounting and the law relating to exemptions for registered trusts.
Earlier R. Sethuraman, Vice-Chancellor, Sastra University, welcomed the gathering and appreciated the efforts of the Commissionerate of Income Tax (Exemptions) for its transparency and proactive steps in dealing with trust exemptions.
S. Vaidhyasubramaniam, Dean, Planning and Development, Sastra University, spoke.
