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Basic Exemption limit for Trust

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Manikanth Tekkur

30 Points Posted on 29 October 2023

Is basic exemption limit of rs 2,50,000/- available for trust,NGOs who are claiming exemption under section 11/12 no longer available ? is there any amendment regarding this. I am facing the issue while filing ITR 7 of trust.

Replies (3)

Quick Summary

This discussion addresses whether the basic exemption limit of ₹2,50,000 is still applicable for trusts and NGOs claiming exemption under Sections 11/12. It clarifies that registered trusts under Section 12A can avail this exemption and file ITR-7. However, unregistered trusts should file ITR-5 without claiming these exemptions, as attempting to do so may lead to scrutiny.

sabyasachi mukherjee

Profession

19978 Points Posted on 30 October 2023

Sec 12AA OF THE TRUST ACT IS VERY PETTINENT.

dada Nagdeve

22 Points Posted on 08 November 2023

Registered trust under section 12A can avail basic exemption limit ₹2.5L, can claim exemption u/s 11/12, and file ITR-7, however if the trust is not registered then they should file ITR-5 without claiming exemption u/s 11/12. There is a strong possibility that case will be chosen for scrutiny if unregistered trust keeps continuing claiming exemption u/s 11/12.

Aashok Kumar Sharma

Finance/Compliance Consultant

77925 Points Posted on 31 October 2026

A registered trust gets the basic exemption only on income taxable at normal rates; income taxed under Sec 115BBI (unapplied or deemed-applied amounts, accumulation not used, application outside objects) and anonymous donations under Sec 115BBC are taxed at a flat 30% without slab benefit, which is why the ITR-7 computation may show no exemption limit.