regarding donation received for specific purpose
This query is : Resolved
20 August 2009
Hello everybody,
I want to know that which ITR is required for file return of a registered society/trust.
Also where will the donation will be shown in ITR.
I want to know that which ITR is required for file return of a registered society/trust.
Also where will the donation will be shown in ITR.
20 August 2009
check my forum post for the same
20 July 2025
For a registered society or trust, the filing of Income Tax Return depends on its status and activities.
1. Which ITR to file?
If the society/trust is registered under Section 12AA and eligible for exemption:
File ITR-7 (Return for charitable/religious trusts and institutions).
If the society/trust is not registered or exempt under 12AA:
It is treated as an ordinary entity and files ITR-5 (for firms, LLPs, AOPs, BOIs, etc.)
2. Where to show donation received?
Donations received by a registered trust/society are shown as Income from Donations under the Income and Expenditure account.
In the ITR-7:
Donations will be shown under the income section under “Income from other sources” or “Income from voluntary contributions”, depending on the nature of the trust.
If the donation is for a specific purpose, it should be recorded separately in accounts as “Corpus donation” or “Donation for specific project”.
Note: Corpus donations (capital donations) are generally not taxable.
Donations for specific purposes should be utilized strictly for that purpose as per trust deed and maintained in proper records.
Additional Tips:
Ensure proper utilization certificates if required by donor or government.
Maintain separate ledger accounts for donations received and utilized.
1. Which ITR to file?
If the society/trust is registered under Section 12AA and eligible for exemption:
File ITR-7 (Return for charitable/religious trusts and institutions).
If the society/trust is not registered or exempt under 12AA:
It is treated as an ordinary entity and files ITR-5 (for firms, LLPs, AOPs, BOIs, etc.)
2. Where to show donation received?
Donations received by a registered trust/society are shown as Income from Donations under the Income and Expenditure account.
In the ITR-7:
Donations will be shown under the income section under “Income from other sources” or “Income from voluntary contributions”, depending on the nature of the trust.
If the donation is for a specific purpose, it should be recorded separately in accounts as “Corpus donation” or “Donation for specific project”.
Note: Corpus donations (capital donations) are generally not taxable.
Donations for specific purposes should be utilized strictly for that purpose as per trust deed and maintained in proper records.
Additional Tips:
Ensure proper utilization certificates if required by donor or government.
Maintain separate ledger accounts for donations received and utilized.
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