#charitable trust taxation

ITAT Delhi rules that charitable trusts not claiming benefits under Section 11 are not subject to the Maximum Marginal Rate, even if structured as AOPs, and must be taxed at individual slab rates - affirming CBDT Circular No. 320 of 1982. This clarifies a critical tax liability distinction for non-exempt trusts receiving dividend income, impacting compliance strategies for trusts with substantial passive earnings.

ITAT Bangalore rules that charitable trusts remain entitled to Section 11 deductions despite delayed filing of Form 10B audit reports, provided the delay is bona fide. The tribunal directed the Assessing Officer to compute net income after allowing admissible expenditure, reinforcing that procedural lapses alone cannot deny substantive tax benefits to trusts.

ITAT Delhi holds that charitable trusts not availing exemption under Section 11 of the Income Tax Act must be taxed at individual slab rates, not as Associations of Persons (AOPs) under Section 167A. The ruling clarifies that trusts without defined beneficiaries or members are not AOPs, impacting tax liability calculations for non-exempt charitable entities.