Income Tax - Draft Rules for prescribing method of valuation of fair market value in respect of trust or institution
THE Finance Act, 2016 inserted a new Chapter XII-EB consisting of sections 115TD, 115TE and 115TF in the Income-tax Act, 1961 (the Act). This chapter contains specific provisions relating to levy of additional income-tax where the charitable institution exempt under the Act ceases to exist as charitable organization or converts into a non-charitable organization.
Sub-section (2) of newly inserted section 115TD provides that the accreted income for the purposes of sub-section (1) thereof means the amount by which the aggregate fair market value of the total assets of the trust or the institution, as on the specified date, exceeds the total liability of such trust or institution computed in accordance with the method of valuation as may be prescribed.
Therefore, the method of valuation of fair market value in respect of the trust or the institution as on the specified date for determination of accreted income needs to be prescribed in the rules.
Accordingly, CBDT proposes to insert rule 17CB in the Income-tax Rules, 1962. comments and suggestion of stakeholders and general public on the draft rules may be sent electronically by 31st October, 2016 at the email address, dirtpl1@nic.in
CBDT F. No. 370142/21/2016-TPL., Dated: October 24, 2016