ITR Filing for Society/Trust Starting from ₹ 5,000/-
Get Started By paying Rs. 5000/-
Introduction
Charitable Trusts/Societies/Foundations are all covered under the head of NGO i.e. Non-Governmental Organisations that works for the social and economic welfare of the society. There are different forms of organisations that can be formed for raising out a hand for charitable activities.
‘Charitable purpose’ includes relief of poor people like education, medical relief, and the advancement of any object of general public utility. One of the benefit which NGOs have is Under Section 80G.
Advantages of ITR FIling for Society/Trust
To receive government grant
Easy loan processing
Exemption from Income tax
Define net worth
ITR Form
ITR-7: ITR-7 is for persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).
Return by charitable trust (section 139(4A)): Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
Return by political party (section 139(4B): Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
Return by agency (section 139(4C)): Return under section 139(4C) is required to be filed by every:
1. Scientific research association;
2. News agency
3. Association or institution referred to in section 10(23A)
4. Institution referred to in section 10(23B)
5. Fund or institution or university or other educational institution or any hospital or other medical institution.
Return by university, colleges (section 139(4D): Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision under this section.
Return by business trust (section 139(4E): Return under section 139(4E) must be filed by every business trust which is not required to furnish return of income or loss under any other provisions under this section.
Return by investment fund (section 139(4F): Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish return of income or loss under any other provisions of this section.
Documents Required
Pan card of of the Charitable Institution
Details of all the members/directors of Charitable Institution
Payment and Receipt Statement
Previous Statement, if filed any
Procedure
Step 1
Fill the simple questionnaire provided by our team.
Step 2
Provide us all the necessary documents as mention above
Step 3
We will prepare the financial statements based on the documents provided to us and file your income tax return before the due date and protect you from any penalty.
Step 4
We will further inform you after filling your Income Tax Return and also provide you the return form and computation.
Additional Information
Eligibility to take Exemption
The Income Tax Act has specified some conditions fulfillment of which can exempt the income of a charitable trust from the scope of Income Tax. The conditions are as follows:
- The trust should be registered as Charitable Trust with the Commissioner of Income Tax which is eligible for exemption under the Act. The registration shall be made as per the guidelines laid under Section 12AA of the Act.
- The trust should not have been created for the benefit or promotion of any particular religious community or caste group.
- The property of the trust should be bound by a trust deed or another similar legal obligation.
- The purpose of holding the property should be for the charitable or religious purpose.
- The income of the trust should not be used for the benefit of the any person who is directly or indirectly related to charitable institution.
- An exemption will be available only for the portion of the income which is used towards charitable or religious purposes.
- In case the income of the charitable institution exceeds the basic exemption limit, the trust should mandatorily submit the books of accounts for the purpose of audit.
- Income derived from property held under trust or of an institution wholly for charitable/religious purpose is exempt, if 85% of the income is spent on the objects of the trust, during the year. If the amount spent is less than 85% of the income, the shortfall is taxable.
Due dates for filling Income Tax return
- September 30 – Where a Trust is required to get its accounts audited under the Income Tax Act or under any other law.
- November 30 – Where a Trust is required to file Form No. 3CEB. Form 3CEB will be required if the trust has entered into certain types of related party transactions.
- July 31 – Where Trust does not need to get its accounts audited.
Penalty of non filling Income Tax Return
If the trust or charitable institute fails to furnish the return of income or fails to furnish the same before the due date, then, the charitable trust shall be liable to pay a penalty under section 272A(2) which shall be Rs. 100 for every till the failure continues.
Tax Rate Applicable
| Tax Slab | Rates |
| Up to 250000 | NIL |
| 250000-500000 | 5% |
| 500000-1000000 | 20% |
| Above 1000000 | 30% |
- Surcharge
- 10% of Tax when net income exceeds Rs 50lakhs
- 15% of Tax when net income exceeds 1crore
- 25% of Tax when net income exceeds 2crore
- 37% of Tax when net income exceeds 5crore
- Health and Education Cess
- 4% of Income Tax + Surcharge