Is mandatory to file itr for examptotion u/s 10(23C).

Hi Santosh! Let me clarify your query about Section 10(23C) exemption and filing of Income Tax Return (ITR).

Section 10(23C) Overview

Section 10(23C) provides exemption to certain income of charitable or religious trusts or institutions, educational institutions, hospitals, etc. If your income qualifies under this section, it means that income is exempt from tax.

Is filing ITR mandatory if you have income exempt under Section 10(23C)?

• Generally, if your total income (including exempt income) is below the taxable limit, filing ITR is not mandatory.

• However, if you have other taxable income besides the exempt income, and your total taxable income crosses the basic exemption limit, filing ITR becomes mandatory.

• Even if the income is exempt under 10(23C), some trusts or institutions prefer to file ITR to maintain transparency and for audit purposes.

• Also, if you want to claim certain benefits or carry forward losses (if any), filing ITR is necessary.

Other conditions related to Section 10(23C):

• The institution/trust must be registered under the appropriate Act.

• The income must be applied for charitable/religious/educational objectives.

• Income should be utilized for the objectives within the prescribed time.

• Annual accounts and audits are usually required.

• Filing of Form 10 (or other specified forms) with the Income Tax Department may be required to claim exemption.

Summary