Who are specified persons for trust?
Following are considered as specified persons as per section 13(3) of IT Act, 1961:
- Author/Founder of Trust
- Person who made donation of more than 50,000 rupees
- Trustee or manager of trust
- Relative of Founder, donor , member, trustee and manger
- Any concern in which any of the above person has substantial interest
Disclosures required
When any trust made payment to or provide any service to specified persons then it has to disclose following details in in its audit report filed under section 12A (b):
- any part of the income or property of the trust/institution was lent, or continues to be lent, in the previous year to specified person
- any land, building or other property of the trust/institution was made, or continued to be made, available for the use of specified person during the previous year
- payment made during the previous year by way of salary, allowance or otherwise services of the trust/institution made available to previous year
- any share, security or other property was purchased by or on behalf of the trust/institution during the previous year from specified person
- any share, security or other property was sold by or on behalf of the trust/institution during the previous year to specified person
- income or property of the trust/institution was diverted during the previous year in favour of specified person
- income or property of the trust/institution was used or applied during the previous year for the benefit of any such person in any other manner
- Investments held at any time during the previous year(s) in concerns in which persons referred to in section 13(3) have a substantial interest
