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Income tax return by trust

vaibhav (M.Com. CA ) (178 Points)

10 January 2014

DEAR FRIENDS

KINDLY LET ME KNOW

1. WHETHER A TRUST NOT REGISTERED U/S 12A CAN FILE ITS INCOME TAX RETURN WITHOUT CLAIMING EXEMPTION U/S 11 AND 12 AND WITHOUT REGISTERED U/S 12A.

2. IF YES THEN WHICH ITR.

3. AUDIT OF BOOKS IS REQUIRED.

4. A SOCIETY REG U/S SOC REG ACT 1860 IS TO FILE IT RETURN AS AOP OR OTHER LAW APPLIES?

THANKS AND OBLIZE

CA VAIBHAV

9414396982

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11 Replies

(Guest)

1. yes

2. ITR 5

3. not sure, sorry

4. A society, if it is a mutual association, the Income will be exempt on the principal of mutuality (eg club, apartment owner's association) The return would be filed as AOP ITR5

[Similarly, in the cases of registered societies, trade and professional associations, social and sports clubs, charitable or religious trusts, etc., where the members or trustees are not entitled to any share in the income of the association of persons, the provisions of new section 167A will not be attracted and, accordingly, tax will be payable in such cases at the rate ordinarily applicable to the total income of an association of persons and not at the maximum marginal rate.

Circular : No. 320 [F. No. 131(31)/81-TP(Pt.)], dated 11-1-1982.]

Vishal (Student) (154 Points)
Replied 22 January 2014

Income Tax Department, on June 11, 2013 issued a notification by which make it compulsory to file e-Return (ITR-7) for all the entities who is enjoying benefit of Tax under section 12A of Income Tax Act.

https://www.kdksoftware.com

CA Tripti (CA Practice ) (29 Points)
Replied 19 June 2014

In case of an Association of an apartment owners whch ITR is to be filed and how to claim benefit of Principle of Mutualism

In case of ITR 7 - purposes mentioned doesnt cover association of apartment owners

In case of ITR5 - if P&L is filled up, how to show net surplus as exempt for tax. Also please let me know rate at which Interest on FD would be taxable (maximum marginal rate or slab rate with slab benefit.

Thanks

(Guest)

The excess is income over expenses is to be claimed exempt under 'any other exempt income' while filling the ITR 5 for mutual asssociations.

It is a much debated issue whether interest from bank deposits will be taxable as per slabs or at 30%. But while filling the ITR 5 a question is asked whether the shares of AOP are determinate or not. when we choose the option indeterminate, Tax is calculated automatically @ 30%.

Mutual associations have been receiving notices from IT dept that their entire income is taxable @ 30%. But in my view slab rates ARE applicable as mentioned in the CBDT circular above.

CA Tripti (CA Practice ) (29 Points)
Replied 20 June 2014

Thanks Mam for your suggestion

CA Tripti (CA Practice ) (29 Points)
Replied 23 June 2014

Is a housig owners association of person having receipts from less than 1 cr is liable to deduct TDS u/s. 94C?

(Guest)

Yes any association AOP is required to deduct tax at source irrespective of turnover towards payments made to contractors, professionals etc

CA Tripti (CA Practice ) (29 Points)
Replied 24 June 2014

For a non profit registered house owners apartment association, service tax is exempt upto 5000pm per member My question is the association is engaged in only general activities such as maintenance, community hall booking, car parking. Surplus invested in fd. Can it be treated as non profit entity and enjoy above service tax exemption?

chandra (audit assistant) (58 Points)
Replied 09 December 2014

the fourth letter in the PAN is T. the ITR 5 is not allowing to upload. if the turst is not registered then can we file ITR 7 please calrify

2 Like

CA R.KANDASAMY (CA Practice ) (44 Points)
Replied 09 August 2015

Hello

In case of Religious societies, the CPC assessments are being made at maximum marginal rates, hence due representations to be made based on the Circular : No. 320 [F. No. 131(31)/81-TP(Pt.)], dated 11-1-1982.

CA R. Kandasamy

1 Like