25 June 2010
a registered trust is doing only social work by accepting donations from known persons. during the year it has income( donation less expenses) of rs. 1,50,000/-. I want to know how it will be tax, considering that all the members are not having income other than agriculture income.
25 June 2010
hi, for trust only income of trust is consider and not of its members. second thing is in case of charitable trust (as in your case ) it is taxed as per slab rates applicable to individual. but the trust can keep aside 15% u/s 11 and balance income, if it exceeds maximum amount not chargeable to tax, will be charged to tax. accumulation would be before deducting any expenses.
CAclubindia
