taxation of trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2010 a registered trust is doing only social work by accepting donations from known persons. during the year it has income( donation less expenses) of rs. 1,50,000/-. I want to know how it will be tax, considering that all the members are not having income other than agriculture income.

CA Mihir Shah

CA Mihir Shah (Expert)
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25 June 2010 hi,
for trust only income of trust is consider and not of its members.
second thing is in case of charitable trust (as in your case ) it is taxed as per slab rates applicable to individual. but the trust can keep aside 15% u/s 11 and balance income, if it exceeds maximum amount not chargeable to tax, will be charged to tax. accumulation would be before deducting any expenses.