Trust taxation

Our charitable Trust is registered under Society Act 1860 & Mumbai Trust Act 1950 in 2017-18. The Trustees have contributed Rs. 76000/- as Donations & the same is expenses for the Trust objectives of Samudra Swachha. We dont have 12A yet as we have applied recently. Under what provsions/Act we claim deductions, exemptions so that there will be no income tax attracted as there is no profit.

Replies (4)
As per my knowledge, you can't claim any deduction nor claim any exemption until you get Sec12A registration, you can't claim expenses made for charitable purpose either, however, as per one decided case, donation received by trust for specific purpose will not be taxed, only gross receipt & general donations will be taxed.

Case Ref: ITO (Exemptions) Vs Serum Institute of India Research Foundation (ITAT Pune)

Dhanyawad Ankitji for ur valuable reply.

That means Donations received for Trust objectives will not be taxed 

No Siddharth ji, only corpus specific donations are non-taxable as it'll be treated as capital receipt. Corpus specific donations are donations which have been donated for a specific purpose and donor has given a Specific instruction in writing that the money he has donated will only be used for that purpose and not for any other general purpose of trust even it is charitable, if any donation is for general purpose of trust and trust can spend that money at their discretion then such donation will be taxable in the hands of Trust.

We did not recd Donations for general purpose we will have to show that the Donations we received were Corpus.

Regards 

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