prabhat (director) (28 Points)
28 May 2016hello everyone.
it will be great if somebody answer my question. i have charitable trust. i filled my trust return in 2014-15.
the return was nil. no tax.
suudenly i got demand from it department of 352000.
they calculate tax 30% on all income. they havnt consider the expenses.
can any body tell me solution for this situation coz our trust not earning as much profit. and we cant afford this liability.
CA Rohan Dedhia
(Practicing Chartered Accountant)
(83 Points)
Replied 28 May 2016
Hi Prabhat,
The problem has arisen since your Trust would not have been registered u/s 12A(a) of the Income Tax.
The Legitimate way to go about it is as follows -
1. Appeal against the Order with the CIT-A.
2. In the meanwhile, apply for 12A(a) and obtain the same. (Make sure 12AA is not rejected and never cancelled).
3. present the case before the CIT-A at the time of hearing and benefits of sec. 11 will be given to your trust.
Please note that there are other short-term measures to solve your problem but the same may cause issues in Future.
The above method is the most suitable in your case.
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