ITR FILING -PRIVATE TRUST

The income tax return of Charitable Trusts must be filed using ITR 5 or ITR 7. 
In case the Trust is required to file an income tax return due to taxable income is in excess of the basic exemption limit, then ITR 5 can be filed.
In case the Trust is required to file an income tax return mandatorily under Sections 139 (4A) or 139 (4E) of the Income Tax Act, then ITR 7 must be filed.

The slab rate are:
First Rs. 2.50 L - Zero.
Next Rs. 2.50 L to Rs. 5 L - 5%
Next Rs. 5 L to Rs. 10 L- 20%
Next & Above Rs. 10 L- 30%

Surcharge:
10%, in case taxable income is above ₹ 50 lakhs.
15%, in case taxable income is above ₹ 1 crore.
25%, in case taxable income is above ₹ 2 crore. 
37%, in case taxable income is above ₹ 5 crore.

Note- Cess @ 4% shall also be added.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)

Thank you so much for the reply, Mr.Sorav. I shall get in touch with you if any further clarifications are required. 

In case of  a private family trust - if the income for the year is NIL , is it still mandatory to file ITR-5? Or is it advisable to file a NIL return even when income is below minimum exemption slab?

Private trusts are taxed differently from charitable trusts:

• ITR form: a private (non-charitable) trust files ITR-5 (the trustee as representative assessee). ITR-7 is only for trusts claiming exemption under Sec 11/12/10(23C) etc.

• Tax rate:

– Specific (determinate) trust, where beneficiaries and their shares are known: the trustee is assessed "in the like manner and to the same extent" as the beneficiaries (Sec 161), i.e. at the beneficiaries' rates. If the trust has business income, it is taxed at the maximum marginal rate (Sec 161(1A)).

– Discretionary trust (shares indeterminate): taxed at the maximum marginal rate (Sec 164(1)), with exceptions, e.g. where no beneficiary has income above the exemption limit, or the trust was created by will for dependants.

• Nil-income filing: not mandatory if total income is below the taxable limit (where slab rates apply). For MMR-taxed trusts, any income is taxable, so file. Filing a nil return is advisable to keep records clean.

• Registration: a private trust doesn't need Sec 12A/12AB registration (that is for charitable trusts). Get a PAN in the trust's name, and register the trust deed if immovable property is involved.