I have a query about taxation of trust not registered with income tax U/S 12AA.
Such unregistered trust have income of Rs. 350000 (3.5 lacs) of voluntary donations (not corpus donations). the trust had expenses the whole amount of Rs. 3.5 Lacs (even more) for general public utility purpose and administrative expenses. Now trust in loss of Rs. 14,000/- for the particular financial year .
now the qury is, what will be the taxable income of the trust. Whole of the rs. 3,50,000 (3.5Lac), or zero income, as trust suffered loss?
Also please guide, if the trust is unregistered, then which ITR form (ITR 5 or ITR 7) will be use for income tax return.
Please guide as soon as possible. Thanks & Regards
01 November 2019
Since trust is not registered u/s 12AA, ITR -7 is not allowed to be filed. The status of such trust will be AOP(Association of Person). SInce trust is incurring loss, No tax shall be applicable.
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