ITR 7 FILING FOR CHARITABLE TRUSTS

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This query is : Resolved

SAGAR (Querist)

19 September 2019 Hello Sir, We have trusts assessees (registered u/s 12aa & 80G and unregistered both, audited / non audited ) for which we file ITR7, where we wish to claim revenue expenditure u/s 11 against voluntary contribution but we are getting notices to pay taxes on whole amount of contribution ignoring the expenses made all the way. And it is being advised to file ITR 5, where we cannot find any schedule to put amounts related to voluntary contributions and charitable purpose.. Kindly advice if we are making mistake to claim such expenditures or filing ITR.. Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 September 2019 Only trust registered u/s 12aa & 80G can file ITR 7 and claim charitable expenditure against voluntary contribution.
Unregisterd trust has to file ITR 5 and pay 30% tax on voluntary contributions. No charitable expenses allowed from voluntary contributions for unregistered trust.

SAGAR

SAGAR (Querist)

20 September 2019 @CA R SEETHARAMAN Sir, Thank u for reply but our client though being a registered u/s 12aa & 80g still being served with same notices regarding filing ITR 5 instead ITR 7. Can u kindly explain me possible reasons? or shall i claim such expenses against Income declaring under head RECEIPTS FROM MAIN OBJECTS. And can u please explain me the difference between Voluntary Contribution and Receipts from Main object.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 September 2019 Check the link to see it's registered trust or not.
https://www.incometaxindia.gov.in/Pages/utilities/exempted-institutions.aspx

If not appearing in the list file ITR 5. Voluntary contributions are donations no expenditure allowed on it for unregistered trust.

SAGAR

SAGAR (Querist)

20 September 2019 Yes Sir, I can find the name of Assessee in Exempted Institutions' List. Actually the assessee has got notices for consecutive 2yrs for same reason and i have to file rectification for it. Or shall i change the head of receipts (i.e. donations) to Receipts from main objects as there are separate heads in Form ITR 7 for VC & Receipts from main objects.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 September 2019 In such a case you should not face any problem in filing ITR 7. No you can't change the head for voluntary contribution.

SAGAR

SAGAR (Querist)

21 September 2019 Thank You Very Much Sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 September 2019 Welcome...................

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