TRUST without 12A REGN

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SHEEJITH (Querist)
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07 January 2008 A public charitable trust receives corpus donation from trustees and other persons during the year 2005-06 and 2006-07

The trust has not taken 12A registraion. Now applying for regn

Whether the corpus donation is liable to tax ?

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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07 January 2008 Income from property held for charitable or religious purposes.

Section11(1) of the Income Tax Act

Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income
(a).........
(b)............
(c)...........
(d) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution.

Income of trusts or institutions from contributions.

Section 12(1)] Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes
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(not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution)
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shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly

SHEEJITH

SHEEJITH (Querist)
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08 January 2008 section 11 and 12 is applicable only if registration is taken under sec 12A. My doubt is if the trust is not taken 12A regn and it received Corpus Donations with a specific direction. Whether section 56 will become applicable for corpus donation received.

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CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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20 February 2008 Mr Sheejith, as the corpus donation received by the non registred trust is an income, it will be a taxable income.
It shall be taxed under Other sources if income is not chargeable to income-tax under the head "Profits and gains of business or profession"

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