Trust query
This query is : Resolved
17 October 2013
Government Body of medical hospital& government Doctors Team made one trust in year 2006 but till date they never filed income tax returns. Main activity is helping poor peoples in village area only.they bring medicines form government hospital and do camps in poor areas by government doctors so my question is shall we file Assessment year 2013-14 income tax returns under ITR7 along with audit report?but they not maintain any books of account and whats about past years?
please provide brief clarification.
thank you
please provide brief clarification.
thank you
17 October 2013
ITR-7 is mandatory file return for Assessment year 2013-14 and 2012-13
17 October 2013
U need to submit itr-7 and form 10B -Audit report duly audited and signed by a practicing chartered accountant.
19 October 2013
Thank you But Sir Audit Time period went and they will file 1st time return and not have books of accounts so in this condition whats u suggest?
02 August 2025
This is a very important compliance question involving a **charitable trust** formed in **2006** by a **government body and doctors**, which has:
* **Not filed income tax returns till A.Y. 2013–14**
* **No books of accounts maintained**
* Activities limited to **medical relief in poor/village areas**
* Wants to file ITR-7 (along with audit) **for the first time**
* Audit deadline has passed
Let’s go step-by-step to clarify what can and should be done.
---
## ✅ 1. **Can You File ITR-7 for A.Y. 2013–14 Now?**
As of **August 2025**, the due date for **A.Y. 2013–14** returns and audit reports is **long gone**. Legally, you **cannot file** these now using the standard electronic system.
However, if the trust wants to **regularize past non-filing**, here are the realistic options:
---
## 🔁 2. **What Can Be Done Now for Past Years?**
### Option A: **Voluntary Disclosure (Non-Filing Intimation)**
* Prepare a **consolidated income statement** for past years (even if books are not maintained, try to reconstruct from bank records, donation receipts, etc.).
* Consult a **CA** to draft a **letter of disclosure** to your jurisdictional **Income Tax Officer**, explaining:
* Trust is a non-profit voluntary body
* Books were not maintained due to lack of awareness
* No income derived for personal benefit
* Activities were fully charitable and social
* You can request **condonation** of delay under **Section 119(2)(b)** for filing return **with approval of CBDT**, but this is rarely granted unless major public interest is proven.
---
## 📌 3. **Books of Accounts Not Maintained – What to Do?**
Under **Section 12A** and **Section 44AB**, if your trust’s **total income exceeds ₹2.5 lakh**, you must:
* Maintain **proper books of accounts**
* Get an **audit done** (Form 10B)
Since no books were maintained:
* You should now **reconstruct basic accounts** from bank statements, receipts, and any paper trail
* Appoint a **chartered accountant** to prepare a **reconstructed balance sheet and income-expenditure** for the years you want to report
* From **current year onwards**, ensure full compliance
---
## ✅ 4. **Moving Forward – What Should Be Done Now?**
1. **Start maintaining books of accounts** from current year
2. **Register trust under Section 12AB** (if not already done)
3. **File ITR-7 and Form 10B** from **current assessment year** (e.g., A.Y. 2024–25 onward)
4. Maintain all records: doctor participation, medicines used, photographs of camps, beneficiary lists
---
## ⚠️ Penalty Risk?
Technically, non-filing attracts:
* **Late filing fees (Section 234F)**
* **Penalty (Section 271F, now obsolete)**
* No exemption can be claimed for those years (under Sec. 11) without 12A registration + return filing
That said, **if there was no significant taxable income** (e.g., no commercial activity), the risk is minimal—but still, **disclosure** is a safer legal route.
---
### ✅ Suggested Action Summary:
| Action | Status |
| ------------------------------------------ | ---------------------------------- |
| Reconstruct books from 2006 onward | ✅ Yes |
| File ITR-7 for A.Y. 2013–14 | ❌ Not allowed now via portal |
| File current year ITR-7 + Audit (Form 10B) | ✅ Must do |
| Apply for 12AB registration if not done | ✅ Yes |
| Approach IT department for condonation | ⚠️ Only if necessary, with CA help |
---
Would you like a sample letter template to disclose past non-filing to the IT Department or a checklist for ITR-7 and Form 10B filing for current year?
* **Not filed income tax returns till A.Y. 2013–14**
* **No books of accounts maintained**
* Activities limited to **medical relief in poor/village areas**
* Wants to file ITR-7 (along with audit) **for the first time**
* Audit deadline has passed
Let’s go step-by-step to clarify what can and should be done.
---
## ✅ 1. **Can You File ITR-7 for A.Y. 2013–14 Now?**
As of **August 2025**, the due date for **A.Y. 2013–14** returns and audit reports is **long gone**. Legally, you **cannot file** these now using the standard electronic system.
However, if the trust wants to **regularize past non-filing**, here are the realistic options:
---
## 🔁 2. **What Can Be Done Now for Past Years?**
### Option A: **Voluntary Disclosure (Non-Filing Intimation)**
* Prepare a **consolidated income statement** for past years (even if books are not maintained, try to reconstruct from bank records, donation receipts, etc.).
* Consult a **CA** to draft a **letter of disclosure** to your jurisdictional **Income Tax Officer**, explaining:
* Trust is a non-profit voluntary body
* Books were not maintained due to lack of awareness
* No income derived for personal benefit
* Activities were fully charitable and social
* You can request **condonation** of delay under **Section 119(2)(b)** for filing return **with approval of CBDT**, but this is rarely granted unless major public interest is proven.
---
## 📌 3. **Books of Accounts Not Maintained – What to Do?**
Under **Section 12A** and **Section 44AB**, if your trust’s **total income exceeds ₹2.5 lakh**, you must:
* Maintain **proper books of accounts**
* Get an **audit done** (Form 10B)
Since no books were maintained:
* You should now **reconstruct basic accounts** from bank statements, receipts, and any paper trail
* Appoint a **chartered accountant** to prepare a **reconstructed balance sheet and income-expenditure** for the years you want to report
* From **current year onwards**, ensure full compliance
---
## ✅ 4. **Moving Forward – What Should Be Done Now?**
1. **Start maintaining books of accounts** from current year
2. **Register trust under Section 12AB** (if not already done)
3. **File ITR-7 and Form 10B** from **current assessment year** (e.g., A.Y. 2024–25 onward)
4. Maintain all records: doctor participation, medicines used, photographs of camps, beneficiary lists
---
## ⚠️ Penalty Risk?
Technically, non-filing attracts:
* **Late filing fees (Section 234F)**
* **Penalty (Section 271F, now obsolete)**
* No exemption can be claimed for those years (under Sec. 11) without 12A registration + return filing
That said, **if there was no significant taxable income** (e.g., no commercial activity), the risk is minimal—but still, **disclosure** is a safer legal route.
---
### ✅ Suggested Action Summary:
| Action | Status |
| ------------------------------------------ | ---------------------------------- |
| Reconstruct books from 2006 onward | ✅ Yes |
| File ITR-7 for A.Y. 2013–14 | ❌ Not allowed now via portal |
| File current year ITR-7 + Audit (Form 10B) | ✅ Must do |
| Apply for 12AB registration if not done | ✅ Yes |
| Approach IT department for condonation | ⚠️ Only if necessary, with CA help |
---
Would you like a sample letter template to disclose past non-filing to the IT Department or a checklist for ITR-7 and Form 10B filing for current year?
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