Tata Trust: “The tax department met the officials of Tata Trust today (Friday). The Tata Trusts are exempt from income tax under the laws”, said the spokesperson of Tata Trusts on Friday.
Ratan Tata-owned charitable trusts come under the scanner of the Income Tax Department
Ratan Tata’s Trust has come under the scanner of the income tax department as the I-T dept has summoned the officials from the trust. The trust had been granted a tax exemption since the trust falls in the charitable category’. However, it has been alleged that the trust has misused the tax exemption.
The reports published in 2013, (Exemptions to Charitable Trusts and Institutions) by Comptroller and Auditor General said that some of the trusts have invested a large amount of money meant for charity purposes elsewhere. The total amount under the scanner of the income tax department is Rs 3000 crore invested by Navajbai Ratan Tata Trust and Jamsetji Ratan Tata Trust.
As per the report, the amount invested by these trusts was done in” prohibited mode of investment which is in contravention to the provisions of section 13 (1) (d) of the Income-Tax Act (dealing with investment)” which is a violation of the law.
The Tata trust spokesperson said, “Tata Trusts don’t pay tax, and it’s permissible for them not to pay tax under provisions of the Income Tax Act.”