Registration of Turst Under Section 12A

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Hello,

Is it mandatory to obtian a registration of Charitable Trust U/s 12A of IT Act....?

What are the Tax Implications and other implications, if any Charitable Trust don't obtain it...?
Replies (1)

If you registered under 12AA of the income tax act 1961 , you will get  lots of benefits  under  section 11 and 12 of the Income tax act ,  such as  As per said section if Trust  spends more than or equal  to 85%  of  receipts  towards ,  its  objects in India  then there is no tax on Balance  15%  . 

If you  are not registers under 12AA of the Income tax act 1961 , the Trust  will be assesses as  AOP / BOI (Association of Persons)   and will not get any benefits  even though you spend 85% of your receipts , The Income Will be Taxable at Maximum marginal rate (MMR) 

please confirm with others also. 


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