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Employee gratuity trust

Prathyusha reddy (CA Article Assistant) (178 Points)

12 February 2016

Dear Frnds, Pls tell me Which ITR Form is Applicable to Employee Gratuity Trust ??

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16 Replies

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 12 February 2016

As it is covered under section 139(4C) of income tax act, 1961, ITR - 7 to be filed for such case

Thanks

1 Like

Prathyusha reddy (CA Article Assistant) (178 Points)
Replied 15 February 2016

Dear Gokul Garu,

Section 139(4C) of Income Tax Act 1961, deals with Scientific Research and section 139(4A) related with trust Income.. I am filing the return u/s139(4A). In this case which ITR is Applicable whether ITR-5 or ITR-7 .. Please Resolve my query..

Thanks

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 15 February 2016

Dear Prathyusha reddy Avargale,

139(4A) - 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, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

139(4C) -

(4C) Every—

(a) research association referred to in clause (21) of section 10;

(b) news agency referred to in clause (22B) of section 10;

(d) institution referred to in clause (23B) of section 10;

(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in 54[sub-clause (iiiab) or] sub-clause (iiiad) or sub-clause (vi) or any hospital or other medical institution referred to in 54[sub-clause (iiiac) or] sub-clause (iiiae) or sub-clause (via) of clause (23C) of section 10;

55[(ea) Mutual Fund referred to in clause (23D) of section 10;

(eb) securitisation trust referred to in clause (23DA) of section 10;

(ec) venture capital company or venture capital fund referred to in clause (23FB) of section 10;]

(f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10;

(g) body or authority or Board or Trust or Commission (by whatever name called) referred to in clause (46) of section 10;

(h) infrastructure debt fund referred to in clause (47) of section 10,

shall, if the total income in respect of which such research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union or body or authority or Board or Trust or Commission or infrastructure debt fund 56[or Mutual Fund or securitisation trust or venture capital company or venture capital fund] is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form57 and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).

4A is for only chartiable trust or religious trust

Thanks

1 Like

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 15 February 2016

Employee Gratutity Trust is not a Chartiable Trust or Religious Trust to be filed under section 139(4A)

Prathyusha reddy (CA Article Assistant) (178 Points)
Replied 15 February 2016

Dear Gokul Garu,

Thank u for giving the valuable information.. and my one more query is, gratuity exemption is claimed under which section? Whether under section 10(23C)(v) or under section 10(46)..??

Thanks

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 15 February 2016

Dear Prathyusha,

Section 10(25)(iv) exempts that any income received by trustees on behalf of an approved gratuity fund

Thanks

1 Like

Prathyusha reddy (CA Article Assistant) (178 Points)
Replied 15 February 2016

Dear Gokul Garu,

Thank u for giving the kind Information.. Thank u So much..

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 15 February 2016

Happy to know that you are interested in income tax act. keep on going. All the Best.

Thanks

Sajid A Pancha (PROPRIETOR) (21 Points)
Replied 17 March 2016

Dear CA Gokulraj Guru,

You have mentioned "Section 10(25)(iv) exempts that any income received by trustees on behalf of an approved gratuity fund".

However, when we fill up the form, the option of 10(25)(iv) is not availlable. On Page relating to Personal Information, there is a table "Details of the Projects / Institutions run by you". This table is to be mandatorily filled. In last column, we have to mention under which section is the income claimed exempt. The income of Gratuity Fund is claimed u/s 10(25)(iv). But, this option is not available. And without filling this table, return cannot be filed. (as the X M L is not generated).

Can you please provide guidance for the same.

Thank you

CA Sajid Pancha

sivakumar (Asst Manager - F&A) (324 Points)
Replied 28 July 2016

Dear Sirs,

Please assist on above urgent.

The income of Gratuity Fund is claimed u/s 10(25)(iv). But, this option is not available. And without filling this table, return cannot be filed. (as the X M L is not generated).

Read more at: /forum/employee-gratuity-trust-349565.asp

sivakumar (Asst Manager - F&A) (324 Points)
Replied 28 July 2016

Dear Sirs, Please assist on above urgent. The income of Gratuity Fund is claimed u/s 10(25)(iv). But, this option is not available. And without filling this table, return cannot be filed. (as the X M L is not generated).

Read more at: /forum/details.asp?mod_id=349565&offset=2

Vikas Chandra (Proprietor) (22 Points)
Replied 21 March 2017

The Board or trust which you have highlighted refers to a trust formed by the C Govt as per Section 10(46) . As such there seems to be no specific clause for Gratuity Trust in either of sub section (4A) to 4E

Tikaram Chaudhary (Founder of Gratuity Trust Fund Consultant) (2187 Points)
Replied 25 December 2017

Benefits of Creating Group Gratuity Trust Fund

For more details on the above subject visit - https://groupgratuityfundconsultantindelhi.blogspot.in/2017/12/benefits-of-creating-group-gratuity.H T M L

Tikaram Chaudhary (Founder of Gratuity Trust Fund Consultant) (2187 Points)
Replied 25 December 2017

Benefits of Creating Group Gratuity Trust Fund

For more details on the above subject visit - https://groupgratuityfundconsultantindelhi.blogspot.in/2017/12/benefits-of-creating-group-gratuity.H T M L