Tax liability of trust reg under 12aa

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2013 What is the tax liability of the trust reg. under sec. 12aa?

When audit obligation arises?

Trusti can become the employee of the trust or can get any remuneration from d trust and how much?

Guest

Guest (Expert)

24 May 2013 For audit obligation: Trust are required to be audited u/s 12A(1)(b), where total income before giving execption exceeds maximum amount not chargeable to tax. in Form 10 B

For tax liability: If trust satisfied all the requisite conditions of section 11 and 12, trust income is exempt.
conditions are
REgistration u/s 12
Activities should confined to objectives and with in India only.
Application of income not less than prescribed limit.
Investment in specified deposit.

Section 13(3) of the act provides the list of prohibited person, means income of the trust can not applied to such persons.
And the list includes "Author or founder or trust"
For more clarity refer section 13(3)