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

Temple Trust Without 12A Registration Taxed as AOP, Liable for Income Tax on Donations and Other Income A discussion on a forum addressed the taxation of a temple trust that has not obtained 12A registration. The trust receives rental income and bank interest totaling 10 lakh rupees. It was clarified that without 12A registration, the trust is taxed as an Association of Persons (AOP), making it liable for taxes on its income, including donations designated for corpus or specific purposes. Participants agreed on the necessity of registration for tax exemption, although no specific tax code section was cited. The discussion was appreciated for its informative exchange.