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Income tax return for trust

visu iyer (mentor) (832 Points)

17 May 2021

should a trust required to file income tax return for fy 20-21

where the revenue is less than 1lac and there is no profit.

no income tax return were filed in earlier fy.

veterans please guide

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11 Replies

sabyasachi mukherjee (25992 Points)
Replied 17 May 2021

CERTAINLY A TRUST HAS TO FILE RETURN OF INCOME.
BUT THERE IS A DIFFERENCE BETWEEN AN AOP AND TRUST.
THE MODUS OF OPERANDI OF A TRUST AND AOP ARE DIFFERENT.

Sivaramaraju G (Learner) (2398 Points)
Replied 17 May 2021

Any Trust with a gross total income of more than the basic exemption limit is required to file income tax returns mandatorily.
Also, the following types of trusts are required to file an income tax return mandatorily, irrespective of gross total income:

Research Association

News agency

Association or institution.

Fund or institution

University or other educational institution

Mutual Fund

Securitisation trust

Investor Protection Fund

Core Settlement Guarantee Fund

Venture capital company or venture capital fund

Trade union

Body or authority or Board or Trust or Commission

Infrastructure debt fund

Business trust

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 17 May 2021

Not required to file ITR

Lotus Agrawal (Practice) (1356 Points)
Replied 17 May 2021

Agree with ramaraju

sabyasachi mukherjee (25992 Points)
Replied 17 May 2021

THERE ARE VARIOUS CAREGORIES OF TRUST:
BUT CERTAIN CATEGORIES MENTIONED ABOVE IS NOT A TRUST.
VENTURE CAPITAL COMPANY/FUND BOTH ARE NOT IN THE SAME CAREGORY OF ASSESEE.
A TRUST IS SUPPOSED TO FILE RETURN OF INCOME.AS PER PROVISIONS LED DOWN IN SEC 12AA..

veerendar singh (tax consultant) (3301 Points)
Replied 17 May 2021

I agree with ramaraju and would like to add that if a trust claims exemption under section 11 then it will have to mandatorily file itr.

if you dont file itr it creates a bad record which you will have to present before commissioner for reregistration of trust.

sabyasachi mukherjee (25992 Points)
Replied 17 May 2021

Veerendra pls chk the definition of trust.
the owner of post has to exclude venture capital company.
rest is ok.

veerendar singh (tax consultant) (3301 Points)
Replied 17 May 2021

Indeed sabyasachi.
but mr iyer has to give further deails of his trust, like what are its objectives and registration status.

visu iyer (mentor) (832 Points)
Replied 17 May 2021

@ veerendar singh/// the TURST is a declared TRUST and its main objective is for religious support and for society well being; the trust has not filed returns in the previous years; and there is no revenue or income; but last year there is a revenue of less than Rs.1 lac. and there is no income for the fy 2020-21. now the question is does it require to file the ITR for fy 2020-21, since there is no revenue/income.

veerendar singh (tax consultant) (3301 Points)
Replied 17 May 2021

In the said circumstance it is not necessary to file itr. although there is nothing gravely false in not filing itr, it is suggested to regularly file itr irrespective of the amount of income.

visu iyer (mentor) (832 Points)
Replied 18 May 2021

To be with Frank our personal contribution and donations are routed through this trust, it will be hardly ₹.1lac or less per year.

(the trust is registered and got pan has no assets or investment other than bank account and FD)