Trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2018 Unregistered Trust having income from Other Sources (below Rs.15,000) is it taxable?
If yes under what rate?is there any basic exemption limit like Individuals?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 January 2018 No tax. Unregistered trust is taxable in the status of AOP. The benefit of slab rate is allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 Yes Sir, as income is below 15,000 we had filed the return with nil tax . Now we got an intimation u/s 143(1) with tax demand at the rate of 30% on that income.
How to deal with it Sir?

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 January 2018 To pay tax at maximum marginal rate being an unregistered trust. Income has to be computed under commercial manner (apply section 56 and 57). No basic exemption and slab rate for unregistered trust.