Taxation of trust

Trust not registered under Income Tax Act will be taxable as AOP but sec 167 B is not applicable hence the basic exemption limit will be available for it.Even if The Trust is registered under Income tax Act it will have basic exemption limit for its income provided it does not include these:-

(i) Income for private religious purpose{sec-13(1)(a)}

(ii) Income for the benefit of particular religious community{sec-13(1)(b)}

(iii) Income for the benefit of persons specified in section 13(3) {sec-13(1)(c)}

(iv) Funds not invested in accordance with provisions of sec-11(5) {sec 13(1)(d)}

(v) Anonymous donation {sec-115}(exempt @ 5% or 100000 whichever is more)

If the above type of income prevails only that part will be taxed at MMR.

Yes if a Trust Whether it is  registered for exemption under Income Tax Act or not it need to file return when its income exceeds Rs. 250000(without giving effect of the provisions of sec 11 and 12 ),but if organisation is registered u/s 10(21)/10(22B)/10(23A)/10(23B)/10(23C) then it is required to file return mandatorily.

when a gratuity fund trust was not registered and  it gets registered subsequently , will the income received before the registration will be exempt under section 10(25) in ITR 5?