Itr 7

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2013 A school is running under a trust registered u/s 12 (a) (b) having profit during FY 2012-13.
Query:
1. Whether the school is required to file Income Tax Return for AY 2013-14 in Form ITR-7.
2. If yes, whether electronically or paper return.
3. If not filed upto 30.09.2013, what are the consequences.

Ganeshbabu K

Ganeshbabu K (Expert)
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26 September 2013 1)Yes, required to file return before 30.09.2013

2)Electronical return made mandatory for trusts which is registered under 12A by seventh ammendment rules vide notification no.42/2013

3)not only itr7,,tax audit report in form 10b also required to file with in 30.09.2013
..
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Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2013 If the return not submitted till 30.09.2013 ...what panel consequence will be there....

As the assessee gets tax exemption as regd u/s 12A.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2024 For a school running under a trust registered under Section 12A/12AA, here’s how the Income Tax Return (ITR) filing requirements work:

### **1. Filing of Income Tax Return for AY 2013-14:**

- **ITR Form:** Yes, the trust operating the school must file the Income Tax Return using **Form ITR-7**. Form ITR-7 is used by trusts, estates, and associations of persons, including those claiming exemption under Section 11 or Section 12, or those receiving income from charitable or religious activities.

### **2. Mode of Filing:**

- **Filing Method:** Trusts registered under Section 12A/12AA must file their returns electronically. The Income Tax Department mandates electronic filing for most trusts and charitable organizations, especially those with a gross receipt exceeding ₹1 crore or those claiming exemptions.

### **3. Consequences of Not Filing on Time:**

- **Penalty and Interest:** If the return is not filed by the due date (typically September 30th of the assessment year for trusts), the following consequences may apply:
- **Late Filing Penalty:** Under Section 271F, a penalty of ₹5,000 can be imposed for failing to file the return on time.
- **Interest:** Interest under Section 234A may be levied for late filing of the return.
- **Disallowance of Exemption:** The trust could face challenges in claiming exemptions under Sections 11 and 12 if the return is not filed timely.

- **Consequences of Delay:**
- **Audit and Scrutiny:** Delay in filing may attract more scrutiny and a potential audit, especially if the return is filed significantly late.
- **Disqualification of Exemption:** Failing to file the return within the stipulated time frame could affect the trust's eligibility to claim tax exemptions under Section 11 and 12.

### **Important Points to Note:**

- **Maintain Records:** Ensure all records and documentation are complete and accurate before filing.
- **Rectification:** If the return is not filed by the due date, it can be filed late, but it’s important to address any outstanding penalties or interest.
- **Consultation:** It is advisable to consult a tax professional for specific guidance, especially if facing penalties or issues related to late filing.

### **Summary:**

- **Form ITR-7** must be used for the trust.
- **Electronic filing** is mandatory.
- Late filing has consequences including penalties and possible disqualification from tax exemptions.

If you have any more questions or need further clarification on specific points, feel free to ask!

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