Taxation of Trust that has not taken 12A registeration

[Meghana C]

If a trust has not taken 12A registration, The Trust Being a Temple receives Rental Income from Shops & Bank Interest of about 10 Lakh rupees. As The Trust is not registered it would be taxed as AOP, Is the Trust liable to pay taxes on 10 Lakh rupees.?

[Siva Rama]

Yes. The temple is liable of for taxation if 12A registration is not taken, Even donation received by temple with a specific direction that it shall form part of corpus fund and donation received for specific purpose, all are liable to taxation, if 12A registration is not taken.

Regards, Siva

[Meghana C]

Thank you for the reply sir. Could you please provide the section which I can refer, It would be of great help.

[DR.MARIAPPAN GOVINDARAJAN]

Exemption is provided and it requires for registration. If it is not registered then it is liable for automatic transaction. No specific section is there for this purpose.

[KASTURI SETHI]

I support the views of both experts.

[Ganeshan Kalyani]

enriching discussion. Thanks.

AI Summary

Taxation of unregistered trust: income including rent, interest and directed donations is taxable absent 12A registration. Trusts without 12A registration are taxable as an AOP; rental income, bank interest and donations (including corpus-directed or purpose-specific donations) are taxable absent 12A. Exemption requires registration, and no specific statutory section was referenced in the discussion.