Charitable trust or sec 25 company
This query is : Resolved
26 February 2014
Hi
One of the my client is wishing to form a charitable trust in Mumbai to operate all over India to open school, organised seminars and acquire land to form school college etc,
my query is to suggest whether we should should go for charitable trust under Bombay trust act or for sec 25 company please reply soon in detail( with tax impact also)
Thanks in advance
Deepakkumar Jha
9029833887
One of the my client is wishing to form a charitable trust in Mumbai to operate all over India to open school, organised seminars and acquire land to form school college etc,
my query is to suggest whether we should should go for charitable trust under Bombay trust act or for sec 25 company please reply soon in detail( with tax impact also)
Thanks in advance
Deepakkumar Jha
9029833887
26 February 2014
You should go for trust formation and make a registration under section 12A of income tax act to attain the benefit of section 11 and 12.
If you would form section 25 co. then trust will be assessed as company and benefit of sec.11 and 12 would not be attained.
If you would form section 25 co. then trust will be assessed as company and benefit of sec.11 and 12 would not be attained.
26 February 2014
Dear Parul,
please note that section 25 companies are eligible for section 11 and Section 12 benefits. Further, even 80G is allowed.
In addition, section 25 offers a much cleaner and transparent mechanism in comparison to trusts and societies.
please note that section 25 companies are eligible for section 11 and Section 12 benefits. Further, even 80G is allowed.
In addition, section 25 offers a much cleaner and transparent mechanism in comparison to trusts and societies.
27 February 2014
Section 25 company is advisable as it is more convenient to form , more transparent and section 25 companies are eligible for 12AA and 80G benefits.
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