ITR-7 Educational Institutions

we filed return of income for FY 2018-19 in ITR-7 for educational institution having gross receipts more than 1 crore. We didnot have 10(23C)(vi) registration and not eligible for 10(23c)(iiiad) as receipts are above 1 crore. we paid respectives taxes and return filed in ITR-7. we reecived 139(9) notice stating "Assesse filed return in ITR-7 but not clamed any deduction/ exemption under clauses of sec 10 in part statement of income of the return - the return should be filed in prescribed form i.e ITR 1 to 6 as applicable.

If we file ITR other than ITR-7 for FY 2018-19 can we change ITR i.e ITR-7 for fy 2019-20 if receipts are below 1 crore 

Replies (5)
Quick Summary
This discussion addresses filing ITR-7 for educational institutions with gross receipts exceeding £1 crore, particularly when not eligible for specific 10(23C) registrations. The user received a Section 139(9) notice for filing ITR-7 without claiming exemptions. The advice suggests checking if zero exemptions were correctly entered in the income statement schedules, exploring general deductions, or seeking approval from the CIT/PCIT to claim Section 10(23C) exemptions, which is often required for institutions with receipts above £1 crore.

you do not have any exemption in 11 & 12 

no amount is applied for the charitable purposes or invested / deposited in 11(5) 

if your receipts are more than rs. 1 cr then you can take exemption u/s 10(23C) after approval of CIT / PCIT ("PRESCRIBED AUTHORITIES") on or before 30 th SEPT of AY 

They will call for accounts & audit 

Sec 10(23C) exemption can be availed by educational / universities / medical /hospital 

1. where such E/U/M/H substantially financed by govt 

2. other E/U/M/H whose gross receipt does not exceed RS. 1 CR 

3. other E/U/M/H after approval of prescribed authorities 

Check the ITR form whether you have entered zero in the schedules of section 10..

If you are not eligible for deduction then you must enter the zero in the schedules.This might be a reason for 139(9) notice.

Alternatively you can claim other general deductions ..

Can I file ITR-5 as I am not eligible for any sec 10 deduction

But ITR-5 is for partnership firms.

For trusts you need audit report under 10B for which you may have to use ITR-7..

It's practical issue.So you must resolve it.Try to get approval from CIT

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