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
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
