Question ID :
31644
Taxability of Unregistered Trust
My client is having a Charitable trust for women empowerment. He has apllied for 12AA registration which is pending for approval. For FY16 ITR-7 was filed and tax was calculated based on slab. There is only one trusty in the trust and the taxable income of the trusty was below the taxable limit. In the intimation us 143(1), received from Department, tax was calculated @ MMR. Kindly let me know how to proceed with the intimation and taxability of income of Trust.
Posted by
Vivek Khemka
on
May 22, 2018
Filed Under
MISC.
trust is taxable at MMR if not registered.
Posted by
VINAY BHARGAV KUMAR G on
May 22, 2018
Answer ID :
68660
Since approval is pending, so it means trust is unregistered. Tax is to be calculated at MMR. Department is right.
Posted by
CA. SATISH CHAND GARG on
May 22, 2018
Answer ID :
68690
Since approval is pending trust is unregistered. Tax is to be calculated at MMR. But there is time limit for disposing off the application. If subsequently registration is granted ascertain whether you can file rectification application because registration would be granted from the date of application for registration.
Posted by
CA. JAIN JAWAHAR LAL on
May 26, 2018