5 Must know about charitable trust

5 must know about charitable trust
5 Must know about charitable trust

Section 11 and section 12 of Income Tax Act 1961 deal with taxation of charitable and religious trust. Today we have discussed few important points which are 5 must know about charitable trust relating to taxation of religious and charitable trust.

Below we have highlighted points which are 5 must know about charitable trust.

1) Return filing is mandatory as per section 139(4A).

Trust are compulsory required to file Income Tax Return as per section 139(4A) of Income Tax Act 1961 within the due date specified.

2) Corpus donation do not form part of application of Income

It is important to note that if one trust gives donation to other trust and if it forms part of corpus donation of another trust than this shall not form part of the application of Income of the donor trust as per section 11 of the Income Tax Act 1961. 

3) Cash donation is restricted under section 80G

Donation under section 80G is deductible only if amount is paid by any other mode other than cash if the amount exceeds Rs.2000.

4)Modification in the objects of the trust

Trust is required to file fresh registration if the objects of the trust changes from the initial registration within 30 days of the change in the objects of the trust.

5) Taxability of gifts received from trust

  • Any property or any sum of money received from foundation or fund or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10 or
  • Any property or any sum of money received from or by any trust or institution registered under section 12A or section 12AA or
  • Any property or any sum of money received from any fund or trust or institution or any university or other educational institution or any hospital or other medical institution or
  • Any property or any sum of money received by way of transaction not regarded as transfer under clause (i) or clause (iv) or clause (v) or clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause (vic) or clause (vica) or clause (vicb) or clause (vid) or clause (vii) of section 47.
Owner of this information can be reached at K M GATECHA & CO LLP.

 

Important note: This does not lead to legal advice or legal opinion and is personal view and for information purpose only. It is prepared on  the basis of facts available and applicable law.It is suggested to go through applicable provisions of law,latest regulations,judicial announcements, circulars, notifications and clarifications  etc before taking any action based on above content.You agree here by that for any action taken on basis of above information in any manner writer or K M GATECHA & CO LLP is not responsible or liable for  any omission,reliability,accuracy,completeness,errors or authenticity.This work by professional is just for knowledge purpose and does not constitute any kind of  solicitation of work or advertisement.

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