regarding donation received for specific purpose

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This query is : Resolved

SHANTANU SHARMA (Querist)

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.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

20 August 2009 check my forum post for the same

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

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.

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