Yes, Explanation (ii) to this sub-section provides that “cost of the transferred asset” means the aggregate of the cost of acquisition (as ascertained for the purposes of Sections 48 and 49) of the capital asset which is subject to transfer and cost of any improvement there with the meaning assigned to that expression in Section 55(1)(b) of the Act.
Explanation below Section 11(2) provides that any amount paid or credited out of income from property held under wholly charitable trust or partly charitable trust which is not applied but accumulated or set apart to any trust or institution or to any fund either during the period of accumulation or thereafter shall not be treated as application of income for charitable or religious purposes.
|During the financial year 2015-16 charitable trust has given donation directly to the hospitals with instructions that this particular amount should be used only for the treatment of a particular patient and there are certain cheques issued in favour of the patients for outside treatment and the necessary medical bills and hospital reports are taken and kept on record. Besides the above in all cases the trust takes a printed application form duly filled and signed by patient or his kin and in the said form the complete address is available. In no case the copy of PAN card of patient or his relative or AADHAR card is taken. While finalizing the audit, the auditors have demanded the copies of AADHAR card or PAN card of patient which is not possible to obtain now because majority of the patients come from outside Mumbai. Of course all the patients shall be available at given address. Whether the auditors are correct in asking the trustees to obtain PAN card or ADHAR card?
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|CA. H. N. Motiwalla
|Property held for charitable purposes - Donation directly to the hospitals
The auditors have great responsibilities while attesting the financial statements. Paragraphs 38 and 39 of Frame-work of Assurance Engagement .
Section 10(5) provides for exemption from tax in the hands of an employee in respect of value of any travel concession or assistance received from his employer for himself and his family in connection with his proceeding to any place in India either on leave or after the termination of his service.
As querist himself admits that he is resident of India as per section 6 of the Act. So as per section 5, in the hands of resident, all income from whatever source derived would be included in the total income of such individual viz.
In My Home Power Ltd. v. DCIT [IT Appeal No. 1114 (Hyd.) of 2009 dt. Nov. 02, 2012] the Hyderabad Tribunal has held as under:
There is no restriction on Jains to be assessed under the status of “HUF” under the Direct Tax laws, even though Jain community has been declared as a minority community.
No separate definition of the expression HUF has been attempted in any of the Direct Tax laws because the term has a definite connotation under the Hindu Law.
No, as per the Guidelines for Income tax scrutiny for financial year 2010/11 i.e. assessment year 2011/12 published on September 27, 2010, it has been clarified that: