Charitable trust registered under sec 80g

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2014 We have an charitable trust registerd under sec 80G We would like to know

A. do charitable trust have to pay tax

B. what is the exemption limit allowed

C. incom for the year is 17 lakh and expences
is 11 lakh what is the tax liability
please suggest

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 July 2014 You have to spend minimum of 85% of the receipts and if it is not spent then tax applicable @ 30% Plus S.C. will be levied. In case of expenses incurred up to 85% in that case no tax will be charged. The expenses should be incurred for charitable purpose and for no other purpose.