Taxability of a trust which is not registered u/s 12a

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Sai Prasanth (Querist)
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24 February 2018 With reference to above subject, I want to know the following:
1. Status of such person for filing the return
2. Applicable ITR
3. Taxability slab rates

Source for the answers wrt above queries.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 February 2018 status is same as of a trust. ITR to file - ITR-5. for slab rates, generally same as tax slabs for males below age of 60 years.

Sai Prasanth

Sai Prasanth (Querist)
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26 February 2018 Dear Sir,
Thank you for your response.

Can i get brief explanation for the above answers. i.e Basis for your answers

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Sure! Here's a brief explanation with the basis for each answer regarding the taxability and filing requirements of a trust **not registered under Section 12A** of the Income Tax Act:

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### 1. **Status of such person for filing the return:**

* A trust not registered under **Section 12A** is treated as an **Association of Persons (AOP)** or **Body of Individuals (BOI)** for income tax purposes.
* It does **not get the benefits of a charitable trust** registered under Section 12A, such as exemption on income.
* Hence, the trust is taxed like an **AOP**, which is a separate taxable entity.

**Basis:**
The Income Tax Act treats unregistered trusts as AOPs (Section 2(31) defines AOP), and such entities are required to file returns accordingly.

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### 2. **Applicable ITR:**

* Such trusts or AOPs are required to file **ITR-5** (the return form for firms, LLPs, AOPs, BOIs, and other similar entities).

**Basis:**
Income Tax Department's instructions specify that ITR-5 is for entities like firms and AOPs (except those claiming charitable status which file ITR-7).

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### 3. **Taxability and slab rates:**

* Since the trust is treated as an AOP, the income is taxable at **flat rates applicable to AOPs**.
* Unlike individual taxpayers who are taxed as per slab rates, AOPs are taxed at a **flat rate of 30% plus applicable surcharge and cess**.
* However, in some cases, if the members of the AOP are all individuals with income below exemption limits and the income is distributed proportionately, then the income may be taxed in the hands of members. But generally, for a trust treated as AOP, the flat rate applies.

**Basis:**
Section 115UB of Income Tax Act prescribes a flat rate of 30% for AOPs, unless they opt for clubbing with members under specific provisions.

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### Summary:

| Query | Explanation | Source/Section |
| --------------- | ------------------------------ | ---------------------------------- |
| Status | Treated as AOP | Sec 2(31), CBDT guidelines |
| Applicable ITR | ITR-5 | Income Tax Department instructions |
| Tax Slab / Rate | Flat 30% plus surcharge & cess | Sec 115UB, Finance Act |

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If you want, I can share relevant links or notifications from the Income Tax Department for your reference. Would you like that?

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