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Trust Registration under section 12A and 10(23)(c)

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Manikanth Tekkur

10 Points Joined April 2018

An education trust which has a valid 12A registration and now it wants to opt for 10(23)(c)iiiad - education trust (solely for education) and receipts not exceeding 5 crore.

is there any specific procedure to follow to file Income Tax return.

if the trust has 12A registration it has to file form 10BB and it is a lengthy procedure to file ITR.

In 10(23c) we can claim exemption without any CA certificate.

please guide me in this regard
Thank you.

Manikanth Tekkur
mstekkur @ gmail.com

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8991 Points Joined December 2011

Yes, there is a specific procedure to follow when an education trust with a valid 12A registration wants to opt for section 10(23)(c)(iiiad) and has receipts not exceeding ₹5 crores. Here's a step-by-step guide: 1. Obtain a new registration: Apply for registration under section 10(23)(c)(iiiad) using Form 10A. 2. File Form 10BB: As you mentioned, the trust needs to file Form 10BB, which is an application for registration of a charitable or religious trust or institution. 3. File ITR-7: The trust needs to file ITR-7, which is the income tax return form for trusts. 4. Claim exemption: In the ITR-7 form, claim exemption under section 10(23)(c)(iiiad) and provide the required details. 5. Attach Form 10BE: Attach Form 10BE, which is the audit report under section 10(23)(c)(iiiad). 6. Submit documents: Submit all required documents, including the trust deed, registration certificate, and audit report. Note that the trust needs to ensure that its activities and receipts comply with the conditions specified in section 10(23)(c)(iiiad). Regarding the lengthiness of the procedure, yes, filing Form 10BB and ITR-7 can be a detailed process. It's recommended to consult a chartered accountant or tax professional to ensure accurate and timely compliance. Additionally, please note that the trust may need to obtain a new registration certificate under section 10(23)(c)(iiiad) before filing the ITR-7.

Ram Kawale

2 Points Joined August 2021

Thank you sir

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