Itr 7 for religious institution

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2016 Dear Sir,
A religious institution which organizes bhajans, religious songs, etc for general public. They are going to file the IT Return for the first year please tell what will be the status in ITR- 7 i.e. AOP/Trusts or AOP/BOI. Another thing in ITR - 7 it is given Details of Project/Institutions run by you in that what will they write as they does not run any other institution.

Please suggest at the earliest. Your reply would be very helpful.

Thanks,
Abhishek Roy Choudhury.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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22 February 2016 but what form they have registered? On What Status PAN is applied?

ITR-7 to be filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D)

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2016 Dear Sir,
Pan has been applied as Association of Persons. So please tell under which section it will fall.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 For a religious institution filing ITR-7 for the first time, here’s how to proceed with the form and specific details:

### **1. **Entity Classification:**

- **Status in ITR-7:**
- If the institution is organized as a trust, it should be classified under **"Trusts"**. If the PAN is registered as an **Association of Persons (AOP)**, you might face some issues, but the correct classification for a religious institution would typically be **"Trusts"**.

- **Form ITR-7 Status Options:**
- **"Trusts"**: This is the appropriate option for a religious institution organized as a trust.
- **"AOP/BOI"**: This is generally not suitable for a religious trust or institution.

### **2. **Filling Details in ITR-7:**

- **Details of Projects/Institutions Run by You:**
- Even if the institution does not run other projects or institutions, you must provide a description of its activities. You can write:
- **"Organizes religious events such as bhajans, religious songs, etc., for the general public."**
- **"No other institutions/projects run at this time."**

### **3. **Handling PAN Registration Issue:**

- **If PAN is Registered as AOP:**
- Despite the PAN being registered as AOP, if the institution's primary activity aligns with a religious trust, you should ideally file ITR-7 and classify the entity as **"Trusts"** in the form.
- **Consult a Professional:** Given this discrepancy, it’s advisable to consult with a tax professional or chartered accountant to address this issue correctly. They might suggest either correcting the PAN registration status or filing the return with the best possible alignment with actual operational status.

### **4. **Additional Information Required:**

- **Exemptions and Compliance:**
- Ensure compliance with tax provisions applicable to religious institutions under sections such as 11 and 12, which cover income from property held for charitable or religious purposes.

- **Document Attachments:**
- Attach supporting documents related to the institution’s activities, registration, and compliance to provide a complete picture of the entity’s operations.

### **Summary:**

1. **Select "Trusts"** if the institution is organized as a trust, even if the PAN is registered as AOP.
2. **Describe Activities** such as organizing bhajans and religious songs in the relevant section.
3. **Consult a Professional** for guidance on handling discrepancies in PAN registration and ensuring accurate filing.

This approach will help ensure that the return is filed correctly according to the nature of the institution and complies with tax regulations.