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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- FORM 26A APPLICABILITY
- LC charges in relation to Asset purchased should be Capitalised ?
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
