Charitable trusts in India are set up for social causes. To get tax exemption these
registered charitable trusts are required get their trust registered with income tax
department and follow tax regulations as prescribed in India.
As per Income Tax Act, 1961, charitable trusts in India are required to 㕳le income tax
return before the due date as prescribed in the Act. Today, we will be discussing when
a charitable trust is required to 㕳le income tax return and before which date
charitable trusts are required to 㕳le income tax report i.e. due date of 㕳ling income tax
return.
As per section 139(4C) of income tax act, a charitable trust is required to 㕳le income
tax return if total income before allowing exemption under section 11 and 12 exceeds
the basic exemption limit that is chargeable to tax in India for the relevant 㕳nancial
year for which the charitable trust is 㕳ling income tax return.
For assessment year 2014-2015 i.e. 㕳nancial year 2013-2014, basic exemption limit is
Rs. 250000. Without giving e團겪ect to exemptions available under section 11 and 12 of
income tax act, if income of charitable trust exceeds 250000 rupees then the
charitable trust is required to 㕳le their income tax return.
As per income tax Act, where assessee is a person other than company and accounts
are required to be audited under any law then income tax return has to be 㕳led on or
before 30 September of the relevant assessment year. As charitable trusts are
required to get their accounts audited, its income tax return 㕳ling due date is 30
September of the relevant assessment year.
This means for assessment year 2015-2016 i.e. 㕳nancial year 2014-2015, income tax
return 㕳ling due date is 30 September 2015. Similarly for next 㕳nancial year 2015-
2016 or assessment year 2016-2017, due date of 㕳ling income tax return for charitable
trust will be 30 September 2016.
Charitable trusts are required to 㕳le income tax return before the due date is form
ITR7 in paper format.
Charitable trust which fails to furnish its income tax return within the due date of 㕳ling
can still submit it’s IT return any time before the expiry of 1 year from the end of the
relevant assessment year or before the completion of the assessment year which ever
is earlier.
For instance, a charitable trust is required to 㕳le its income tax return for assessment
year 2015-2016 on or before 30 September 2015. If this due date is missed then
income tax return can still be 㕳led on or before 31 march of 2017 i.e. 1 year from the
end of assessment year 2015-2016.