Income tax returns
This query is : Resolved
30 March 2015
Hi All,
Please tell me which ITR should i file for a trust that is not yet registered u/s 12 A??
Please tell me which ITR should i file for a trust that is not yet registered u/s 12 A??
30 March 2015
ITR-5 is recommended.
31 March 2015
Thank you.
Please also tell me about the Taxability.
Shall i fill the details in P&L section under Business & profession head?
Please also tell me about the Taxability.
Shall i fill the details in P&L section under Business & profession head?
01 August 2024
For a trust that is not yet registered under Section 12A of the Income Tax Act, the income is not exempt from tax, and it is taxed as per the regular provisions applicable to an Association of Persons (AOP).
### Filing the Correct ITR for an Unregistered Trust
For an unregistered trust, you should file **ITR-5**. This form is applicable to:
- Firms
- LLPs
- AOPs (Association of Persons)
- BOIs (Body of Individuals)
- Artificial Juridical Person
- Cooperative Societies
- Local Authorities
### Steps to File ITR-5 for an Unregistered Trust
1. **Download the ITR-5 Form**:
- Access the ITR-5 form from the Income Tax Department’s e-filing portal.
2. **Part A: General Information**:
- Fill in the basic details about the trust, including name, PAN, address, and contact information.
3. **Schedule BP: Income from Business or Profession**:
- Since the trust is not registered under Section 12A, you will need to fill in the details of the income and expenses under this head if the trust is involved in any business or professional activities.
- If the trust is not carrying out any business or profession but has other sources of income, those should be reported under the relevant schedules.
4. **Schedule HP: Income from House Property**:
- If the trust has any income from house property, fill in the details here.
5. **Schedule CG: Capital Gains**:
- Report any capital gains if applicable.
6. **Schedule OS: Income from Other Sources**:
- Report income from other sources such as interest, dividends, etc.
7. **Balance Sheet (Part B)**:
- Provide details of the trust's assets and liabilities.
8. **Profit and Loss Account (Part B)**:
- Fill in the details of income and expenditure.
- Since the trust is unregistered under Section 12A, the income will not be exempt, and regular tax provisions will apply.
9. **Tax Computation and Payment**:
- Compute the total taxable income and tax liability.
- Provide details of taxes paid, including TDS, advance tax, and self-assessment tax.
10. **Verification and Declaration**:
- Verify the information entered in the return.
- Sign the declaration section, either electronically using a digital signature or through EVC (Electronic Verification Code).
11. **Submit the ITR**:
- Generate the XML file and upload it to the e-filing portal.
- Verify the return using one of the available verification methods.
### Taxability of an Unregistered Trust
- **Income Tax**: An unregistered trust's income is taxed at the maximum marginal rate applicable to an Association of Persons (AOP). The applicable slab rates will depend on the nature and amount of income.
- **Business Income**: If the trust is carrying out any business activity, the income will be taxed under the head "Income from Business or Profession".
- **Other Income**: Income from other sources, house property, and capital gains will be taxed under the respective heads.
### Example Entries in ITR-5 for an Unregistered Trust
1. **Part A (General Information)**:
- Enter the trust's details, such as name, PAN, address, etc.
2. **Schedule BP (Business or Profession)**:
- Report income from any business or professional activities.
3. **Schedule HP (House Property)**:
- Fill in details of any house property income.
4. **Schedule CG (Capital Gains)**:
- Report any capital gains.
5. **Schedule OS (Other Sources)**:
- Report any other sources of income.
6. **Balance Sheet (Part B)**:
- Provide the trust's balance sheet details.
7. **Profit and Loss Account (Part B)**:
- Fill in income and expenditure details.
By following these steps and accurately reporting the trust's income and expenses, you can correctly file the ITR-5 for an unregistered trust. If you are unsure about any details, it is advisable to consult a Chartered Accountant or tax professional.
### Filing the Correct ITR for an Unregistered Trust
For an unregistered trust, you should file **ITR-5**. This form is applicable to:
- Firms
- LLPs
- AOPs (Association of Persons)
- BOIs (Body of Individuals)
- Artificial Juridical Person
- Cooperative Societies
- Local Authorities
### Steps to File ITR-5 for an Unregistered Trust
1. **Download the ITR-5 Form**:
- Access the ITR-5 form from the Income Tax Department’s e-filing portal.
2. **Part A: General Information**:
- Fill in the basic details about the trust, including name, PAN, address, and contact information.
3. **Schedule BP: Income from Business or Profession**:
- Since the trust is not registered under Section 12A, you will need to fill in the details of the income and expenses under this head if the trust is involved in any business or professional activities.
- If the trust is not carrying out any business or profession but has other sources of income, those should be reported under the relevant schedules.
4. **Schedule HP: Income from House Property**:
- If the trust has any income from house property, fill in the details here.
5. **Schedule CG: Capital Gains**:
- Report any capital gains if applicable.
6. **Schedule OS: Income from Other Sources**:
- Report income from other sources such as interest, dividends, etc.
7. **Balance Sheet (Part B)**:
- Provide details of the trust's assets and liabilities.
8. **Profit and Loss Account (Part B)**:
- Fill in the details of income and expenditure.
- Since the trust is unregistered under Section 12A, the income will not be exempt, and regular tax provisions will apply.
9. **Tax Computation and Payment**:
- Compute the total taxable income and tax liability.
- Provide details of taxes paid, including TDS, advance tax, and self-assessment tax.
10. **Verification and Declaration**:
- Verify the information entered in the return.
- Sign the declaration section, either electronically using a digital signature or through EVC (Electronic Verification Code).
11. **Submit the ITR**:
- Generate the XML file and upload it to the e-filing portal.
- Verify the return using one of the available verification methods.
### Taxability of an Unregistered Trust
- **Income Tax**: An unregistered trust's income is taxed at the maximum marginal rate applicable to an Association of Persons (AOP). The applicable slab rates will depend on the nature and amount of income.
- **Business Income**: If the trust is carrying out any business activity, the income will be taxed under the head "Income from Business or Profession".
- **Other Income**: Income from other sources, house property, and capital gains will be taxed under the respective heads.
### Example Entries in ITR-5 for an Unregistered Trust
1. **Part A (General Information)**:
- Enter the trust's details, such as name, PAN, address, etc.
2. **Schedule BP (Business or Profession)**:
- Report income from any business or professional activities.
3. **Schedule HP (House Property)**:
- Fill in details of any house property income.
4. **Schedule CG (Capital Gains)**:
- Report any capital gains.
5. **Schedule OS (Other Sources)**:
- Report any other sources of income.
6. **Balance Sheet (Part B)**:
- Provide the trust's balance sheet details.
7. **Profit and Loss Account (Part B)**:
- Fill in income and expenditure details.
By following these steps and accurately reporting the trust's income and expenses, you can correctly file the ITR-5 for an unregistered trust. If you are unsure about any details, it is advisable to consult a Chartered Accountant or tax professional.
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