Itr of trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2015 If a trust is not Register under Income tax and with charity commissioner, then which ITR should fill ?

ITR-5 as a AOP
or
ITR- 7 for trust.?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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09 February 2015 https://www.caclubindia.com/experts/return-of-income-of-unregistered-trust-386160.asp#.VNiXCOaUdic

file itr 5 and check this link.

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2015 But trust deed already prepared and on the basis of the same PAN also issued, doesn't it make any issue ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 February 2015 earlier u have said its not regsitered as trust with it dept.
so ans is given on this basis

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2015 Not registered in the sense, it is not registered under 12A.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2024 If a trust is not registered under the Income Tax Act (specifically under Section 12A/12AA) and not with the Charity Commissioner, but it has a PAN and a trust deed, the choice of ITR form depends on its legal status and the nature of its operations. Here’s how to approach this situation:

### **1. Filing the Return:**

#### **ITR-5 vs. ITR-7**

- **ITR-5:**
- **Applicable For:** AOP (Association of Persons) or BOI (Body of Individuals), partnership firms, LLPs, and similar entities.
- **When to Use:** If the trust does not have a formal registration under the Income Tax Act or is not claiming any exemptions under Sections 11 and 12, it should be treated as an AOP/BOI. In this case, you would use ITR-5.

- **ITR-7:**
- **Applicable For:** Trusts and institutions claiming exemptions under sections like 11, 12, 10(23C), and 80G.
- **When to Use:** If the trust were registered under Section 12A/12AA or had approval under 10(23C), it would file ITR-7 to claim the exemptions available under these sections. However, if the trust is not registered and therefore cannot claim such exemptions, it would not file ITR-7.

### **2. Legal Status and Registration:**

- **Trust Deed and PAN:**
- The preparation of a trust deed and the issuance of a PAN do not, by themselves, confer tax benefits or exemptions. Registration under Section 12A/12AA is crucial for claiming exemptions under Sections 11 and 12. If the trust is not registered, it does not qualify for such exemptions.

- **Implications of Not Being Registered:**
- If the trust is not registered under Section 12A, it cannot avail of the exemptions provided under the Income Tax Act for charitable trusts. Thus, it should be treated as an AOP/BOI for tax purposes, and ITR-5 would be the appropriate form if it is not eligible for any special exemptions.

### **3. Actions to Take:**

- **File ITR-5:** Since the trust is not registered under Section 12A and cannot claim the exemptions available to registered trusts, file ITR-5 as an AOP/BOI.

- **Consider Registration:** To benefit from tax exemptions under Sections 11 and 12 in the future, the trust should consider applying for registration under Section 12A/12AA. Registration can provide tax exemptions and enhance the trust's compliance with charitable and tax regulations.

- **Consult a Tax Professional:** For accurate and compliant filing, and to address any specific issues related to your trust, consult a tax professional or legal advisor familiar with trust taxation.

### **Summary:**

- **Use ITR-5** if the trust is not registered under Section 12A and cannot claim exemptions under the Income Tax Act.
- **ITR-7** is typically used for trusts that are registered under Section 12A/12AA and are claiming exemptions.
- **Registration:** Consider applying for registration under Section 12A/12AA if the trust wants to avail itself of the exemptions available to registered trusts.

By following these guidelines, you can ensure that the trust's tax returns are filed correctly based on its registration status and compliance requirements.

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