Income of trust and taxability

This query is : Resolved

(Querist)
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30 December 2024 Trust is registered and after deduction of expenditures u/s 11 total returned income is Rs. 56126/-. whether it is taxable or not. Whether the trust will get the benefit of basic exemption of taxable limit.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 December 2024 The income of the trust must be applied towards its charitable or religious purpose. If the income is not used for these purposes, it may become taxable.
The trust is allowed to accumulate a certain portion of its income, but there are limits on how much can be accumulated without being taxed. The maximum accumulation is generally 15% of the income.
Since the total income after deductions is Rs. 56,126/-, you need to verify that the trust's activities and the application of income comply with the conditions under Section 11. If all conditions are met, the income is not taxable.