LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Taxation of trust

Shahab (accountant) (1 Points)

20 March 2017

Is a Trust applicable to the regular income tax slab benefit?

Reply
Follow
Share

2 Replies

(Guest)

IF TRUST REGISTER AND 85% OUT RECEIVABLE FUNDS USE

FOR SOCIAL WELFARE PURPOSE THEN TAX NOT

APPLICABLE ON TRUST

GO THROUGH SEC 11 AND 12 OF INCOME TAX 1961

CA V KARTHICK (Chartered Accountant in Practice) (506 Points)
Replied 20 March 2017

If a trust is registered under Sec 12A of the Income Tax Act 1961 , then the income of the Trust would not be taxable ( Subject to conditions like 85% of the receipts to be spent for the objects of the trust )

But if the Trust is not registered , it would be assessed as an AOP.

The income of trust less the Amount spent for the objects of the trust will be the Surplus on which 30% tax ( Maximum Marginal Rate ) would be payable.

3 Like