Hello,
Is it mandatory to obtian a registration of Charitable Trust U/s 12A of IT Act....?
What are the Tax Implications and other implications, if any Charitable Trust don't obtain it...?
If you registered under 12AA of the income tax act 1961 , you will get lots of benefits under section 11 and 12 of the Income tax act , such as As per said section if Trust spends more than or equal to 85% of receipts towards , its objects in India then there is no tax on Balance 15% .
If you are not registers under 12AA of the Income tax act 1961 , the Trust will be assesses as AOP / BOI (Association of Persons) and will not get any benefits even though you spend 85% of your receipts , The Income Will be Taxable at Maximum marginal rate (MMR)
please confirm with others also.
CAclubindia
