What is the Tax rate for Trusts???

As per income tax act, 85% of income of a trust in a year must be spent to meet expenses<i,e. objectives > of trust in that financial year itself. and reming 15%  can only be held with them :)

and if in a year, a trust fails to spent atleast 85% of their income then that much of income will be taxed at 30%

say.. trust had spent 50% of its income, then the rest of 35% wil be taxed at 30% :)

for further reference/clarifications go through section 11 and 12 of income tax act :)

Read Sec. 10(23).

income of trust is exempt u/s 10(23)

Only Business Income of a Trust is Exempted na???

I agree with all experts

trust can claim 15% setoff, only after getting 12aa & 80 G Approval??

@ S.ABUSALI: there is nothing like setting off of 15% income, a Trust only need to spend 85% of the total income received, in order to get exemption from Tax.

rest of 15% shall be added to next year income and again the 85% criteria will be carried on.