Income tax return filing of non registered trust

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rajni (Querist)
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21 May 2012 one of our client is a charitable trust. but the trust is not registered. now what is the procedure to file the return. whether the treatment of return is done as per status of AOP or trust. total donation is rec. Rs.80000/- during the A.Y. 2011-12. whether accounts are required to get audited. and which ITR form is used?

Soumitra Basu

Soumitra Basu (Expert)
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27 May 2012 As per AOP

rajni

rajni (Querist)
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31 May 2012 one of our client is a charitable trust. but the trust is not registered. now what is the procedure to file the return. whether the treatment of return is done as per status of AOP or trust. total donation is rec. Rs.80000/- during the A.Y. 2011-12. whether accounts are required to get audited. and which ITR form is used?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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31 July 2024 For a charitable trust that is not registered under Section 12A of the Income Tax Act, the procedure for filing the return and the applicable requirements are as follows:

### **Procedure for Filing Income Tax Return of a Non-Registered Charitable Trust**

1. **ITR Form:**
- **ITR-5:** This is the applicable form for trusts, associations of persons (AOPs), body of individuals (BOIs), and similar entities. Even if the trust is not registered under Section 12A, you would use ITR-5 to file the return.

2. **Treatment of Return:**
- **Status:** Since the trust is not registered, it will not benefit from the tax exemptions available to registered charitable trusts. The income of the trust will be taxed as per the applicable provisions for a trust or AOP.
- **Taxability:** Donations received by the trust will be treated as income and taxed accordingly, as the trust does not have the benefit of exemptions under Section 12A or Section 80G.

3. **Accounts and Audit:**
- **Audit Requirement:** If the total income of the trust exceeds ₹1,00,000 or if the receipts exceed ₹2,50,000, the accounts must be audited under Section 44AB. In your case, the total donation received is ₹80,000, which is below the threshold for mandatory audit.
- **Accounting:** Maintain proper books of accounts and records of all transactions. Even if an audit is not mandatory, accurate record-keeping is essential.

4. **Filing the Return:**
- **Disclosure:** Disclose all income, including donations received, in the ITR-5 form. Ensure that the accounts and details are correctly reported.
- **Form Submission:** You can file ITR-5 either electronically through the Income Tax e-filing portal or by submitting a physical copy to the local Income Tax office.

### **Key Points:**

- **ITR-5 Form:** Use ITR-5 for the return filing.
- **Taxability:** Income from donations will be taxable as the trust is not registered under Section 12A.
- **Audit:** Accounts need not be audited if income and receipts are below the prescribed limits, but maintaining accurate records is crucial.
- **No Exemptions:** Without registration under Section 12A, the trust cannot claim exemptions typically available to charitable trusts.

**Steps to File:**

1. **Gather Documents:** Collect all financial statements, details of donations received, and records of expenses.
2. **Fill ITR-5:** Complete the ITR-5 form with accurate details of income and expenses.
3. **File Return:** Submit the completed form either online through the Income Tax e-filing portal or by filing a physical copy at the Income Tax office.

If the situation is complex or there are additional concerns, consulting a tax professional or chartered accountant for specific advice and assistance is recommended.