Charitable trust compliance

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This query is : Resolved

sachin sabale (Querist)

25 June 2015 Hi,

One Charitable trust is registered under charitable trust act & regular file Charity Commissioner return. Recepts of Trust is below Taxable limit. Trust is never apply pan card & file Income Tax return, Because of Below Taxable limit receipt of Trust, Whether Trust require compliance of Income Tax Act ?

If Receipts of Trust in case exceeding Rs.50,000/- is liable to Compliance of Income Tax Act ?
Trust is mandatory apply to Registration of U/s 11 & 12 A ?

Please if possible let me Case law of Receipt below taxable limit is Income Tax Compliance not require Charitable Trust?

Please guide us.......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 June 2015 All Charitable Organisations having income exceeding the minimum exemption limit during the previous year are required to file their return of income. The ‘income’ for the purposes of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act.
If the trust receipts exceeds Rs 2,50,000 then the trust is liable for compliance of Income tax act. If the trust wants exemption from income tax on the application of income for charitable purpose it is mandatory for registration u/s 12A.

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