Income tax liability for trust reg u/ 12a ,80g

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Deepak Dayananda (Querist)
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15 November 2013 Greetings,
Sir,
Does a Trust holding 12a Certificate and 80G certificate ,and who has completed Audit,Is liable to pay Tax? ...If yes Wat is the Limit of Exemption?.
Please Provide me with the Informaation ASAP.
Regards

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 November 2013 Dear Deepak, 80G is irrelevant. To avoid any tax liability, the trust is required to spend atleast 85% of its receipts during the year for charitable purposes subject to conditions set in Section 11 of the income tax Act

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Deepak Dayananda

Deepak Dayananda (Querist)
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20 November 2013 Thank You so much for reply NIKHIL SIR,
Actually Our Trust has a surplus of around 9lakhs and while filing itr7 online ,it showed a tax liability of around 1.5 lakhs.
so i m worried

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 two things:

1. if you have utilized less than 85%, you need to apply to AO for utilization of the shortfall in enxt year.

2. if you have already done that, you need to ensure that the ITR7 is properly filled in.

Otherwise it will show tax liability

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Deepak Dayananda

Deepak Dayananda (Querist)
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23 November 2013 Thank You Very much Sir,Your Answer is very valuable to me....
Once Again Thank You For your Kind Reply.
Regards

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 November 2013 you are welcome Deepak.

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