Celebrate Freedom with 20% OFF on CAclubindia Pro Subscription. Use Code: FREEDOM20

conversion of trust

Tax planning 507 views 1 replies

Parthsarthi Patel

98 Points Joined May 2009

Dear Colleagues,

Can a Charitable Trust Registered u/s 12 AA of the I T act be converted into co op society? If yes, how?

Further, any person making payment to the trust so registered is not to deduct TDS from payment to trust.. is it right?

Replies (1)

Guest

A charitable trust claiming exemption u/s 11 can be converted into a co-operative society thereby claiming deduction u/s 80P. This is what I understand. Tell me if I am correct.

But if that is correct. I am afraid why anyone would like to do it. Pls clarify.

Your second query : Payment made to charitable trust is subjected to TDS. But charitable trust can apply to AO u/s 197 for no deduction of tax or lower deduction of tax. AO shall issue a certificate.