24 October 2009
How to File Trust Return ? which ITR we have to choose ? any other Special thing which we have to know to File Trust Return ?
Pls tell me whatever related to this Concern Pls guide me as early as possible
Thanks in advance
1. ITR-7 2. Income and expenditure account 3. Balance sheet 4. Audit report in form 10B. 5. Copy of 12A registration certificate. 6. Paper return to file in the jurisdictional ward.
Thank you sir but if Trust is newly registered, they needs Audit of their Accounts ?
If they only have Pan of Trust Where they can File Trust Return or not ?
14 July 2024
Filing a trust return involves several steps and considerations, especially regarding the type of return, documentation required, and whether an audit is necessary. Here’s a detailed guide to help you:
### 1. Type of Income Tax Return (ITR)
For filing a trust return, you need to choose the appropriate Income Tax Return form. In the case of a trust, you typically use **ITR-7**. ITR-7 is specifically meant for trusts and entities claiming exemption under section 11 (income from property held for charitable or religious purposes) or section 139 (4A).
### 2. Documentation Required
To file a trust return, you generally need the following documents:
- **Income and Expenditure Account**: This details the income earned and expenses incurred by the trust during the financial year.
- **Balance Sheet**: This provides a snapshot of the trust's financial position, listing assets, liabilities, and capital as of the end of the financial year.
- **Audit Report in Form 10B**: This is required if the trust’s total income exceeds the maximum amount not chargeable to tax (currently ₹2,50,000 for assessment year 2024-25), or if certain conditions specified under the Income Tax Act are met. For newly registered trusts, an audit may not be required in the first year if income is below the threshold.
- **Copy of 12A Registration Certificate**: This certificate indicates the trust's registration under section 12A of the Income Tax Act, which is necessary for claiming exemption under section 11.
- **PAN of the Trust**: This is essential for filing the trust return.
### 3. Audit Requirement for Newly Registered Trusts
- For newly registered trusts, an audit of accounts is generally not required in the first year of operation if the income does not exceed the basic exemption limit (₹2,50,000 for assessment year 2024-25) and the total sales, turnover, or gross receipts do not exceed ₹50 lakhs in the financial year.
- If the trust's income exceeds the exemption limit or if the total sales, turnover, or gross receipts exceed ₹50 lakhs, an audit is required.
### 4. Filing Process
- **Online Filing**: Trusts can file their returns online through the income tax department’s e-filing portal (https://www.incometaxindiaefiling.gov.in). You will need to register as a legal entity (Trust) and then proceed with filing ITR-7.
- **Jurisdictional Ward**: The trust should file the return in the jurisdiction where its registered office is located.
### Key Points to Remember:
- Ensure all income and expenses are correctly classified in the Income and Expenditure Account. - The Balance Sheet should accurately reflect the financial position of the trust. - The audit report (Form 10B) must be signed by a qualified chartered accountant.
### Conclusion
Filing a trust return involves careful preparation of financial statements, compliance with audit requirements (if applicable), and accurate filing using the correct ITR form (ITR-7 for trusts). If you are unsure about any specific requirements or if the trust is newly registered, consulting with a qualified tax professional or chartered accountant is advisable to ensure compliance and avoid penalties.
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