Rules for illegal temple

Dear Client,
Your queries are responded to under. Q-1) Temples come under indian trust act. Does illegal temples also come under indian trust act? Ans- To manage and control the activities of Temples/charitable non-profit-making institutions, a trust is formed following the provision of the Indian Trust Act and a deed of trust is registered under the Registration Act to make the trust a legal body of persons. An illegal property or temple cannot be a subject matter of any trust deed. Q. no.2) If temple is not legal & managed by some individuals,will they not have to pay 30% income tax on donations received. Ans- A trust after its formation has to apply for PAN on the registration of the trust deed and apply for registration under Section 12A and Section 80 of the Income Tax Act to the Commissioner of Income Tax along with necessary documents to avail of the exemption on income under the I T Act. Even if a trust is formed to manage a temple that has no legal sanctity, any income generated from the source of the temple is taxable. Q.no.3) Whether amount recovered from donation box has to be disclosed in income tax return? Ans - As stated in response to Q.no.2, all income from the temple is taxable in the hands of an unregistered trust unless it is registered under the Income Tax Act in compliance with the provision of the Act.

Dear Client,
Hope this reply answers your query.
There is no exemption for illegal temples from the Indian Trusts Act of 1882. Private trusts, including religious trusts for legal companies, are generally governed under the Indian Trusts Act. Since they are unapproved buildings, illegal temples are not covered by this act. If they break land use and other restrictions, local authorities may take them to court. There is no exemption for illegal temples from the Indian Trusts Act of 1882. Private trusts, including religious trusts for legal companies, are generally governed under the Indian Trusts Act. Since they are unapproved buildings, illegal temples are not covered by this act. If they break land use and other restrictions, local authorities may take them to court.
the amount recovered from the donation box must be disclosed in the income tax return if the temple is legally registered and enjoys tax-exempt status. This is part of the financial transparency required for religious institutions. Registered trusts must maintain proper records of all donations and file annual returns with the Income Tax Department.