Trade union - return filing

Yes, a registered trade union under the Trade Unions Act, 1926 is required to comply with return filing obligations under both the Income Tax Act and the Trade Unions Act, depending on the nature and quantum of income.

Let’s break it down clearly:

✅ 1. Under the Income Tax Act, 1961:

• Section 10(24) of the Income Tax Act exempts income of a registered trade union only to the extent it is:

  "Income chargeable under the head ‘Income from house property’ and ‘Income from other sources’, in so far as such income is attributable to the union being a trade union."

• If income before claiming exemption under section 10 exceeds the basic exemption limit (i.e., ₹2,50,000 for AY 2025–26), you must file Income Tax Return.

🔸Key Points:

• File ITR-5 (as applicable to associations like trade unions).

• Maintain books of account on calendar year? You can still file for financial year (April–March) with necessary adjustments.

• File return before due date (31st October) under section 139(1), if audit not applicable.

✅ 2. Under the Trade Unions Act, 1926:

• Section 28 of the Trade Unions Act mandates annual returns to the Registrar of Trade Unions.

🗂️ Required Return:

• Must file a return in Form D (prescribed under the Trade Unions Regulations) with:

  • Income & expenditure statement

  • Asset & liability statement

  • Membership data

🗓️ Due Date:

• Before 1st July every year for the preceding calendar year.

✅ What Should You Do Now?

1. File ITR (likely ITR-5) if:

   • Gross income before exemption exceeds ₹2.5 lakh.

   • Even if exempt under Section 10(24), return must be filed for disclosure.

2. File Form D return to Registrar of Trade Unions before 1st July (based on calendar year accounting).

📝 Pro Tip:

• Attach audited accounts (if applicable or if required by Registrar).

• Keep acknowledgment of both filings for future compliance verification.