04 March 2019
What will be the taxability of unregistered Charitable Trust? If corpus fund is created for the educational activities and the same is also one of the objective of the trust then can it be utilised for scholarship to students?
05 March 2019
Taxability of unregistered trust will be like an AOP and the benefit of sections 11 & 12 of the income tax act will not be available to the trust since it does not a 12A certificate. Corpus funds are funds carrying specific directions where it should be used. Since the corpus funds are in the nature of capital receipt it can be used for scholarship purposes. Also it been capital in nature no tax is leviable on it.
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