Respected Sir,

I invite your kind attention to the editorial of the journal of the month of March 2023, wherein you have highlighted the plight of small and medium trusts who are engaged solely for the cause of education.

It is heartening to note that you have suggested an exist scheme for small and medium trusts to get out of the rigors of sections 2, 10(23), 12AA, 13 and Income-tax Act, 1961 (Act) 80G.

The finance bill of 2023 meets half way of the suggested exit scheme. If income is to be taxed like any individual, AOP, or juridical person under the 115BAC why deny the benefits of depreciation as envisaged u/s 32 of the Act and allowable expenditure u/s 30-37.

The denial of claim of depreciation and taxing the income will be a death blow to small and medium trusts, who are under severe cash crunch.

Sir, if education as a whole has a lept during the past decade it is only the small and medium trust who have worked assiduously for the cause of education. We pray that good sense prevails on the government and not to kill the goose that lays the golden egg.

Thanking You,

Yours Faithfully,
S. Doraiswamy
Tax Consultant, Salem