05 August 2015
Please guide me in following case - Trust registered under sec 12A w.e.f. 01/04/2007. - Trust is running primary & secondary school. - Trust's receipts are grant and student fees. - Trust has incurred deficit during the year.
Query:
1) Whether it is mandatory to file the return of income? 2) Whether deficit to be shown in income from other sources. 3) Whether student fees to be treated as voluntary contribution as income from other sources?
05 August 2015
1. yes The charitable trust in India gets exemption as per section 11 and section 12 of the Income Tax Act.The various conditions including registration procedure is given in section 12AA and section 13 of the I.T.Act. Various rules are also prescribed in I.T Rule . One of the condition for claiming exemption is [ as per Rule 17 B ] is that audit report in Form 10B has to be filed along with return of income. It must be noted that the return of a charitable trust is filed in paper form and attaching audit report is required as per Rule 12 of I.T.Rule.
The issue however is whether failure of attaching the statutory audit report along with return of charitable trust , the claim of exemption can be denied forever. In other words , whether attaching the audit report with the income tax return is mandatory.
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