Filing of itr

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Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2014 Which ITR to be filed for Employees Gratuity Fund Trust whose income is exempted u/s 10(25)iv)of Income Tax Act 1961

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 September 2014 if I am not mistaken, gratuity funds are not required to file tax return.

other experts may correct me if I am wrong.

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2015 Yes, employees gratuity fund trusts are not required to file income tax return. It is clearly mentioned in Circular No. 4/2002, dated 16-07-2002. The link of the circular given below:

http://www.incometaxindia.gov.in/Communications/Circular/910110000000000477.htm

Circular No. 4/2002, dated 16-07-2002

1183. Whether prescribed self-declaration under section 197A can be submitted by entities
whose income is exempt under section 10
1. Subsequent to the amendment to section 197A made by the Finance Act, 2002 whereby a new
sub-section (1B) has been inserted with effect from 1st June, 2002, representations have been received
seeking clarification whether the prescribed self-declaration under the said section can be submitted by
entities exempt from tax under section 10 even if the payments referred to in sub-section (1A) to be made
to them exceed the threshold limit not subject to tax.
2. This matter has been examined by the Board. It has been decided that in case of those funds or
authorities or Boards or bodies, by whatever name called, whose income is unconditionally exempt under
section 10 of the Income-tax Act and who are statutorily not required to file return of income as per
section 139 of the Income-tax Act, there would be no requirement for tax deduction at source since their
income is anyway exempt under the Income-tax Act. The institutions whose income is unconditionally
exempt under section 10 and who are statutorily not required to file return of income as per the provisions
of section 139 are :
(i) "local authority", as referred to in the Explanation to clause (20);
(ii) Regimental Fund or Non-public Fund established by the armed forces of the Union referred to in
clause (23AA);
(iii) Fund, by whatever name called, set up by the Life Insurance Corporation of India on or after 1st
August, 1996, or by any other insurer referred to in clause (23AAB);
(iv) Authority (whether known as the Khadi and Village Industries Board or by any other name) referred
to in clause (23BB);
(v) Body or authority referred to in clause (23BBA);
(vi) SAARC Fund for Regional Projects set up by Colombo Declaration referred to in clause (23BBC);
(vii) Secretariat of the Asian Organisation of the Supreme Audit Institutions referred to in clause (23BBD)
till assessment year 2003-2004;
(viii)Insurance Regulatory and Development Authority referred to in clause (23BBE);
(ix) Prime Minister’s National Relief Fund referred to in sub-clause (i), Prime Minister’s Fund
(Promotion of Folk Art) referred to in sub-clause (ii), Prime Minister’s Aid to Students Fund referred
to in sub-clause (iii), National Foundation for Communal Harmony referred to in sub-clause (iiia),
any university or other educational institution referred to in sub-clause (iiiab) and any hospital or
other institution for the reception and treatment of persons as referred to in sub-clause (iiiac) of
clause (23C);
(x) Credit Guarantee Fund Trust for Small Scale Industries referred to in clause (23EB) till assessment
year 2006-2007;
(xi) Provident fund to which the Provident Funds Act, 1925 (19 of 1925) referred to in sub-clause (i),
recognised provident fund referred to in sub-clause (ii), approved superannuation funds referred to in
sub-clause (iii), approved gratuity fund referred to in sub-clause (iv) and funds referred to in
sub-clause (v) of clause (25);
(xii) Employees’ State Insurance Fund referred to in clause (25A);
(xiii)Corporations referred to in clause (26BB);
(xiv) Boards referred to in clause (29A).
Circular : No. 4/2002, dated 16-7-2002.