Taxability of income of trust
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 September 2013
Dear sir,
I have client whose legal status is religious trust. But they have not been registered with income tax department u/s 12a and they dont have 12A certificate.
Now in FY 2012-13 their total donations receipts were Around Rs. 1650000 out of which they have spent around Rs 420000 towards object of the trust and administrative expenditure and balance Rs. 1230000 have been spent for construction of Temple building.
Now my question is that will there be any tax liability..? Will they get benefit of amount spent for construction of temple building..?
Please help as early as possible as i have to finalize accounts.
I have client whose legal status is religious trust. But they have not been registered with income tax department u/s 12a and they dont have 12A certificate.
Now in FY 2012-13 their total donations receipts were Around Rs. 1650000 out of which they have spent around Rs 420000 towards object of the trust and administrative expenditure and balance Rs. 1230000 have been spent for construction of Temple building.
Now my question is that will there be any tax liability..? Will they get benefit of amount spent for construction of temple building..?
Please help as early as possible as i have to finalize accounts.
21 September 2013
if I am not wrong, unless the registration as charitable trust is done, the trust shall not get any exemption benefits.
The best recourse shall be to apply for registration with tax authorities and plead for retrospective 12A registration.
The best recourse shall be to apply for registration with tax authorities and plead for retrospective 12A registration.
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