04 September 2010
ITR-7 HAS TO BE FILED MANUALLY. hERE INCOME IS NOT EXCEEDED THE EXEMPTION LIMIT OF rS.160000 . HENCE nO AUDIT REPORT HAS TO BE OBTAINED. yOU HAVE TO EXPEND 85% OF INCOME TOWARDS EXPENDITURE.In your case rs.24000 (80% of Rs.30000) you have to be expended.
05 September 2010
in your case the 85% criteria is not applicable as the income itself is below the basic exemption of Rs 1.60 lakhs and no tax is payable. for charitable trusts there is a provision to get 100% exemption if you get registered with the commissioner of Income tax under section 12AA of the Income Tax Act. In case your income is below 1.60 lakhs, such registration may not be necessary. In high income cases, if you donot "apply" 85% of your gross receipts in the same year, the trust may file Form No 10 under section 11(2) opting to carry forword the unapplied income to the next year but it shall not be allowed to be carried forword beyond 5 years
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