Dear Team
We have few general queries
1.How is taxable income & the amount of tax payable calculated in case of public trusts without 12A registration ?
2.If a public Trust without 12A has Total donation received Rs. 4 lacs .
i) What is the taxable income and amount of tax payable if expenditure is Rs. 3 lacs and balance is 1 lac ?
ii) What is the taxable income and amount of tax payable if expenditure is Rs. 4 lacs and balance is nil .
Thanks
Minakshee
Santosh George has already responded with tax liability amounts. Basically taxation in case on non-exempt charitable trust is applied on maximum marginal rate (30%). Taxable Status of entity becomes AOP (Association of Persons).
Dear Sir,
Could you also please through some light on whether a trust without 12 A can hold corpus fund or not and what avenues are open for the Trust to build up a building fund or something similar which we can invest on construction of our own premises or leasing a premises for our use.
No income is exempt if any trust does not have tax exemption, hence both revenue and corpus donations be subject to tax, of course after eligible expenditure.
i) Rs.30000/- tax
II) No tax