Educational institution with negative income

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avrandco (Querist)
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19 April 2019 Which return form is to be submitted (i.e, ITR 5 or ITR 7) in case of negative balance arrived by the Charitable Trust/ Charitable Society/ Educational Institution. Actually we filed ITR 7 for the Educational Institution and didn't the claim exemption u/s 10(23 iiiad) because of negative balance. But CPC defected the return since the Educational Institution has not claimed the exemption. In that case, how to deal with the situation?

Amol S Joglekar

Amol S Joglekar (Expert)
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19 April 2019 you can submit online response for the same.

avrandco

avrandco (Querist)
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20 April 2019 Could you explain me in detail?

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Amol S Joglekar

Amol S Joglekar (Expert)
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20 April 2019 did you receive the communication from CPC stating that the return is defective?

avrandco

avrandco (Querist)
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20 April 2019 yes we received the communication from cpc stating that the return is defective

Amol S Joglekar

Amol S Joglekar (Expert)
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20 April 2019 To this letter you can give the reply stating the facts as to why the exemption has not been claimed. (The reason is that the income is negative so the question of claiming exemption does not arise and hence the return of income should not be regarded as defective)