Treatment of income and expenditure of a regd.public trust but not yet registered under sec12a of it
Jayachandran
(Querist) 26 September 2015
This query is : Resolved
Savings and credit groups for poor women has created an umbrella organization, which is a registered Trust. During the last assessment year, it has received voluntary contributions of Rs125724/- and out of which incurred expenses of Rs48470/-(office rent and registration) and elderly care RS 8609/-, and made a provision for accounts and audit and elderly care activities RS83048/-. Now we have received a notice from IT that the entire voluntary contribution is taxable @30/-. They have not recognised the expenditure at all. We seek your opinion and advise. Thanks in advance
R.Jayachandran
jayasdc@gmail.com
T. Kalaiselvan, Advocate
(Expert) 02 October 2015
No doubt you have received the notice from the IT department informing yo to pay the tax, you have to get your accounts properly audited by a certified auditor and with the copy of the accounts, you may give your reply to the authorities to convince them about the erroneous liability of tax imposed on you.
Consult an auditor and proceed.
