Computation

If trust is carrying on the business it will be taxed under PGBP. moreover a trust can't carry on business as per amendment to the meaning of the word TRUST from assessment year 2009 - 2010. In normal cases it will be taxed under Other Sources.

Application of Income should be verified by making reference to Objects which were mentioned in the Deed of Trust.If more than 85 % of the Inomce earned by trust is not expended for the objects mentioned in the deed & trust has not made any Investments as per Sec.11(5) of Income Tax Act then the Income of the Trust will be taxable at applicable rates.