Trust for benefit of Minor 2

Hi Madhu,

Yes of course, why not? In the Deepak Family Trust case that Iquoted, a trust was said to be eligible to claim deduction u/s 80Lon account of being assessable in the capacity of an individual. 80Lcertainly has closer affinity with 80C than section 54. Once therevenue is ready to assess a trust as an Individual, how can it denyit the deduction u/s 80C? But I am not sure who will be the personsupon whose life we can take out an insurance policy and claim thepremium paid as deduction u/s 80C. Would it be the trusteesthemselves or the beneficiaries?Regarding fresh infusion of funds into the trust kitty, I don'tthink there should be any problem. As long as the child is minor,there can be no adverse tax consequences. If there wasn't a taxliability upon the initial introduction of funds into the corpus, notax event arises on a second helping as well. The income the trustearns keeps getting added to the trust's corpus. So the trust'scorpus isn't static anyway. The tax consequence would be only on thetrust itself—on the income it earns on the investment of those funds.Thanks,CA Sanjeev Bedi--- In http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/post?postID=OlyijGXmIvjJERQM0UBw3JHAFB4BBmdTzcZ4QiMcv7bUZPKXWJw3cFQU5UADvWqnr8PhRbBp91Hsw_nOuQg-DUuXmtkypZt9wg, madhu tapuriah wrote:>> Res Sanjeev ji> good discussion in lucid manner.> Now i have to query on the matter>> when we say that We have had cases where the courts have ruledthat trusts, being>> individuals, are eligible to claim exemption from capital gains bymaking investments u/s 54, etc. CAN THE SAME RATIO BE APPLIED ANDTHUS CAN THE TRUST CAN CLAIM BENEFIT U/S 80C ???>> Second query is that once the family beneficiary trust is createdwhether the settler in the, say 3rd or 4th or subsequent years,againset aside any sum of money in the same trust as corpus withoutattracting any tax liability ??>> Regards> Professionally Yours> CA Madhu Soodan Tapuriah