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Trust Taxability

Rohan Mainkar (Manager) (60 Points)

10 September 2020

I am having Trust registered with charity commissioner and it is also registered under Society Act.

My trust not registered under section 12AA of the Income Tax Act.

What will be the tax implication on donation received by the trust. what if trust receives 10 crores of donation and trust applies 100% of the same for the charitable purpose?

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2 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 11 September 2020

Respected Rohan Ji

For Claiming Exemption under section 11 to 13

Trust must be required registered under section 12AA

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 11 September 2020

Donation received may be taxed by AO u/s 56(2)(x) as an amount of money received by trust without consideration under the head income from other sources. However, you may argue that since the donation granted for the purpose to apply for charitable purpose and trust has fully applied it also therefore income shall be taxed after allowing deduction of expenses u/s 57 and hence trust may not require to pay tax.