Whether a charitable trust also is entitled for threshold income tax limit?



A charitable trust earns income from interest on fixed deposits in banks totalling below maximum limit not liable for income tax. Does the trust also is entitled for basic exemption under income tax? Are there any conditions?

Whether a charitable trust also is entitled for threshold income tax limit?
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3 Replies to “Whether a charitable trust also is entitled for threshold income tax limit?”

  1. this interest on fixed deposits comes under income from other sources, it is not the earned by charitable trust and its transactions, so the interest is taxable above the limit.


  2. Yes, the trust is entitled for basic exemption under income tax. For basic exemptions there are no conditions. However there should not be any anonymous donations.


  3. NO IT IS NOT COVERED UNDER THE LIMIT. HOWEVER THE TRUST INCOME IS EXEMPT IF THE TRUST IS REGISTERED UNDER SECTION 12 A OF THE ACT SUBJECT TO 85% OF THE INCOME IS APPLIED FOR THE OBJECT OF THE TRUST IN THAT YEAR





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