21 March 2012
A trust regisrtred u/s 12A , trust receive grant from govt same was deposit as FD, receive int on FDRs Rs 4198000 on amount deposit with schedule bank, NOT having any other income, amount of interest is deposit with schedule bank specified us 11(5). my question is 1} is trust liable for tax or not 2] how can trust get exemption.
Income derived by a trust is taxable unless that income is applied (85% minimum) for charitable purpose in India ( other than exempt income).
In your case the trust has derived income from fixed deposit , thus its income will be taxed unless that income is applied (85 %) for charitable purpose in India.
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