Income tax on Trust
pyush (Student CA Final ) (81 Points)
24 July 2019
when Trust is not registered in section 12AA, then what is tax implications when total income is 4,00,000
2 Replies
Mehul porwal
(266 Points)
Replied 24 July 2019
This income will be taxable as per slab rate and no deductions u/s 11 and 12 will be allowed.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 24 July 2019
1. One of the Condition specified u/s 12A is the trust must be registered u/s 12AA in order to avail the exemption u/s 11 and 12.
2. As explained in the above reply if the trust is not registered then it will be considered as proprietorship even though it has a trust deed and income of such trust will be taxable as normal slab limit applicable for proprietorship.
3. In your case Rs. 400,000 will be taxable under the normal provision.
Please correct me if the above solution has an alternative view.
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