Taxation of trust not registered

This query is : Resolved

CA. Dheeraj jain (Querist)
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31 October 2019 Dear Sir,

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 October 2019 1 File ITR 5
2 Entire 3.5 lacs taxable slab rate applicable if none of the trustees having taxable income

CA PARTH SHAH

CA PARTH SHAH (Expert)
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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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