Assessment of Trust not registered u/s 12A

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Mahesh (Querist)
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03 April 2009 If a trust is registered with the Charity Commissioner but not registered u/s 12A of the I T Act. How the assessment is completed. Is there no deduction permissible even for the expenses?
If the grant received for a project from any other NGO or GOvt/semi govt. agency is utilized for the purpose it is granted and any surplus is left; what would be added to the Income; total grant or surplus only.
Can anybody throw light on the provisions in this regard.
Thanks in advance.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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03 April 2009
To claim income tax exemption the trust should register under Section 12A of the IT ACT to get exemption under SEction 11.

Since the assessee has not registered with the it as trust it becomes association of persons.

The net surplus after all expenses will be treated as profits of aop and assessed accordingly.

All grants will be treated as income and all spendings against that will be allowed as deduction including expenses.

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Mahesh

Mahesh (Querist)
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05 April 2009 Thanks a lot.

Mahesh

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Gokulesh

Gokulesh (Expert)
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08 March 2016 I have not received basic exemption for Trust (Not having 12 A cert) . Directly 30% tax charged on gross receipts. Kindly guide.