Trust

GST, Income Tax, FCRA & Other Compliances of Charitable Entities

Income Tax - 1. Income Tax Related Compliances a. Registration under Section 12AB The trust can carry on the charitable or religious activities as per the objects for which it was formed. However, in order to claim tax exemption of its receipts and income, it needs to get registered under the Income Tax Act, 1961. Section 12AB registration […]...

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Difference between Society and Trust

Income Tax - Trust is governed by Indian Trust Act, 1882 while Societies are governed by Societies Registration Act 1860. At least 2 trustees are required to register a public charitable trust In general....

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Draft Guidance Note: A Comprehensive Analysis Guide to Audit of Public Charitable Institutions

Income Tax - Exposure Draft for the issuance of a ‘Guidance Note on Audit of Public Charitable Institutions under section 12A of the Income-Tax Act, 1961.' The primary objective of this Guidance Note would be to provide direction and clarity for the audit of public charitable institutions, which are registered under section 12A of the Income-Tax Act...

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Points To Be Noted Before Drafting A Trust Deed

Income Tax - A public charitable trust is a type of not-for-profit organization created and managed for the purpose of providing a benefit to the public. Unlike private trusts, these organizations are subject to public scrutiny and must comply with legal rules, including filing financial disclosure forms. The public’s business is conducted in an...

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करमुक्त संस्थानों द्वारा बाजार दर से सेवाएं देना पड़ सकता है भारी

Income Tax - हाल में ही हैदराबाद आयकर अपीलीय प्राधिकरण ने एक सामाजिक एवं सेवा संस्थान फर्नाडीज फाउंडेशन की करमुक्त मान्यता को विभाग द्वारा र...

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Request to relax confusion created in new registration regime for charitable organizations

Income Tax - Karnataka State Chartered Accountants Association made a representation on 31.10.2022 to Minister of Finance Smt. Nirmala Sitharaman and requested to simplify the confusion created in the new registration regime for charitable organizations and relax compliances under new regime for registration/approval of trusts, institutions, funds, un...

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CAG report on Income Tax Exemptions to Charitable Trusts & Institutions

Income Tax - CAG noticed ineffective monitoring of accumulation of income and its utilization, ineffective monitoring of receipts and utilization of foreign contribution, inadequacy of survey of educational Trusts, absence of provision for disclosure of TDS in the audit report, etc....

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Handbook on Statement of Donations Received

Income Tax - Recently, changes were made in the provisions pertaining to compliance by charitable religious institutions under the Income-tax act, 1961 by making it mandatory the furnishing of Statement of Donations Received in Form No. 10BD and thereafter generation of Certificate of Donations in Form 10BE....

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How to file Form 10BD – Part-B Details of donors & donation

Income Tax - These instructions are guidelines to help the taxpayers for filling the particulars in CSV template in Part-B Details of donors and donation relevant to the Financial Year....

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Drastic changes in FCRA & rules relating to Charitable Trusts/NGOs causing undue hardship

Income Tax - Mumbai BJP Professional Cell has written a letter to Shri Amit Shah Ji and requested to lookint0 Drastic changes made in FCRA and related rules relating to Charitable and Religious Trusts (Trusts/NGOs) are  not proper and causing undue hardship to NGOs. Mumbai BJP Professional Cell Dated- 29th May, 2021 To, Shri Amit Shah Ji, Honorable [...

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Corpus donations received by unregistered Trusts are not taxable

T.R. Gupta Public Charitable Trust Vs CIT (Exemptions) (ITAT Amritsar) - ITAT held that Corpus donations received by Trusts, which is not registered u/s.12A/12AA of Income Tax Act, are not taxable as they assume the nature of 'Capital receipt' the moment donations are given to 'Corpus of Trust'...

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Section 11(6) Depreciation not allowable if value of assets claimed as application of income

Podar Literacy & Education Trust Vs DCIT (ITAT Mumbai) - Podar Literacy & Education Trust Vs DCIT (ITAT Mumbai) AO has disallowed the claim of depreciation as per the mandate of provisions of sec. 11(6) of the Act, which reads as under:- (6) In this section where any income is required to be applied or accumulated or set apart for application, then, f...

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PCIT cannot grant conditional section 12A Registration

Lady Tata Memorial Trust Vs CIT (Exemption) (ITAT Mumbai) - Role of PCIT while according registration under section 12A is only to make himself satisfied about genuineness of activities to be carried out by assessee trust and compliance of such requirement of any other law for the time being in force by trust or institution material to achieve its object and...

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No Tax on Grant received by Trust for participation in particular events outside India

ITO Vs Sports Good Export Promotion Council (ITAT Delhi) - The tide up grants for a specific purpose would only mean that the assessee which was voluntarily organization, had agree to act as a trustee of a special fund granted by the donor with the result that it need not be pooled or integrated with the assessee is normal income or corpus....

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ITAT allows Exemption on pharmacy income of Charitable hospital

DCIT Vs Karuna Medical Society (ITAT Mumbai) - Activity of Chemist / Pharmacy is incidental or ancillary to dominant object or purpose for running a hospital & Tax Exemption allowable....

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CBDT notifies New Income Tax Rules & Forms for Trust & NPOs

Notification No. 19/2021-Income Tax/G.S.R. 212(E). - (26/03/2021) - CBDT issues Notification no. 19/2021 dated 26/03/2021 pertaining to procedure for registration of fund/ trust/charitable institutions etc. All institutions, funds etc covered under clause (i) and (iv) of first proviso to section 10(23C), fifth proviso to section 35(1), clause (i) and (iv) of first p...

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Bombay Public Trusts (Second Amendment) Rules, 2019

No. BPT-1117/C.R. 59/Desk XV - (15/05/2019) - These rules may be called the Bombay Public Trusts (Second Amendment) Rules, 2019. 2. In rule 1 of the Bombay Public Trusts Rules, 1951, in sub-rule (1) i.e., in the short title and throughout the principal Rules, for the words and figures Bombay Public Trusts Rules, 1951 the words Maharashtra Publi...

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Internal Audit Procedure of Registration Process of Charitable Trusts

F. No. 240/8/2015— A & PAC —11 - (14/12/2018) - It has been recommended by the Hon'ble Public Accounts Committee that the process of the Registration Process of Charitable Trusts / Institutions should be brought under the purview of internal audit....

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Govt asks NGOs getting foreign funds to register with Niti Aayog

No. II/21022/58(119)/2015/FCRA (MU)/ - (04/10/2017) - It has been decided that all the existing FCRA registered associations and those who are seeking registration/prior permission or accepting foreign contribution are required to register with DARPAN Portal with all the necessary information such as Organization PAN, email, Mobile Number & Name of Chi...

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Indian Trusts (Amendment) Act, 2016 applicable from 17.04.2017

Notification No. S.O. 1184(E) - (17/04/2017) - Central Government hereby appoints 17th day of April, 2017 as date on which provisions of Indian Trusts (Amendment) Act, 2016 (34 of 2016 shall come into force....

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Trust’s Popular Posts

Recent Posts in "Trust"

GST, Income Tax, FCRA & Other Compliances of Charitable Entities

1. Income Tax Related Compliances a. Registration under Section 12AB The trust can carry on the charitable or religious activities as per the objects for which it was formed. However, in order to claim tax exemption of its receipts and income, it needs to get registered under the Income Tax Act, 1961. Section 12AB registration […]...

Read More
Posted Under: CA, CS, CMA |

Difference between Society and Trust

Trust is governed by Indian Trust Act, 1882 while Societies are governed by Societies Registration Act 1860. At least 2 trustees are required to register a public charitable trust In general....

Read More
Posted Under: CA, CS, CMA |

Draft Guidance Note: A Comprehensive Analysis Guide to Audit of Public Charitable Institutions

Exposure Draft for the issuance of a ‘Guidance Note on Audit of Public Charitable Institutions under section 12A of the Income-Tax Act, 1961.' The primary objective of this Guidance Note would be to provide direction and clarity for the audit of public charitable institutions, which are registered under section 12A of the Income-Tax Act...

Read More
Posted Under: CA, CS, CMA |

Points To Be Noted Before Drafting A Trust Deed

A public charitable trust is a type of not-for-profit organization created and managed for the purpose of providing a benefit to the public. Unlike private trusts, these organizations are subject to public scrutiny and must comply with legal rules, including filing financial disclosure forms. The public’s business is conducted in an...

Read More
Posted Under: CA, CS, CMA |

करमुक्त संस्थानों द्वारा बाजार दर से सेवाएं देना पड़ सकता है भारी

हाल में ही हैदराबाद आयकर अपीलीय प्राधिकरण ने एक सामाजिक एवं सेवा संस्थान फर्नाडीज फाउंडेशन की करमुक्त मान्यता को विभाग द्वारा र...

Read More
Posted Under: CA, CS, CMA |

Corpus donations received by unregistered Trusts are not taxable

T.R. Gupta Public Charitable Trust Vs CIT (Exemptions) (ITAT Amritsar)

ITAT held that Corpus donations received by Trusts, which is not registered u/s.12A/12AA of Income Tax Act, are not taxable as they assume the nature of 'Capital receipt' the moment donations are given to 'Corpus of Trust'...

Read More

Section 11(6) Depreciation not allowable if value of assets claimed as application of income

Podar Literacy & Education Trust Vs DCIT (ITAT Mumbai)

Podar Literacy & Education Trust Vs DCIT (ITAT Mumbai) AO has disallowed the claim of depreciation as per the mandate of provisions of sec. 11(6) of the Act, which reads as under:- (6) In this section where any income is required to be applied or accumulated or set apart for application, then, for such purposes […]...

Read More

Request to relax confusion created in new registration regime for charitable organizations

Karnataka State Chartered Accountants Association made a representation on 31.10.2022 to Minister of Finance Smt. Nirmala Sitharaman and requested to simplify the confusion created in the new registration regime for charitable organizations and relax compliances under new regime for registration/approval of trusts, institutions, funds, un...

Read More
Posted Under: CA, CS, CMA | ,

Charitable institution, society or trust should ‘solely’ engage itself in educational activities and not in any activity of profit to enjoy tax exemption

Charitable institution, society or trust should ‘solely’ engage itself in educational activities and not in any activity of profit to enjoy tax exemption The Hon’ble Supreme Court in M/s. New Noble Educational Society, v. The Chief Commissioner of Income Tax 1 [Civil appeal no. 3795 of 2014 dated October 19, 2022] has held that for ...

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Posted Under: CA, CS, CMA |

Profit Oriented Institutions Cannot Claim Tax Exemption U/S 10(23C)

PROFIT ORIENTED INSTITUTIONS CANNOT CLAIM TAX EXEMPTION U/S 10(23C), EDUCATION MUST BE ‘SOLE’ OBJECTIVE-SUPREME COURT The Supreme court has provided a landmark judgement in the case of New Noble Educational Society vs Chief Commissioner of Income Tax 1 and ANR held that the educational trust or society, which seek exemption un...

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Posted Under: CA, CS, CMA |

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