Taxation of trust



Is a Trust applicable to the regular income tax slab benefit?
 
Reply   
 
CA FINAL -Accountant

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

 

 
Reply   
 
Chartered Accountant in Practice

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.


Total likes : 3 times

 
Reply   
 

LEAVE A REPLY

Your are not logged in . Please login to post replies

Click here to Login / Register  

 


× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs