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ATUL BAJAJ (Querist)
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25 August 2011 A trust running a college and established b4 1961 currently registered u/s 12AA. College substantially financed by the state govt. is there any exemption regarding filing of i.tax return. please reply with relevant provisions.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 August 2011 If the total income of the trust before claiming exemption u/s 11 and 12 of the Income tax Act,1961 exceeds the maximum amount not chargeable to tax, the trust has to file its income tax return.

Ramya c c

Ramya c c (Expert)
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25 August 2011 Mr.Atul Bajaj, A per section 11(1) in order to claim tax exemption, IT return u/s 139(4A)Trusts have to be filed before due date. Refer the above sections.

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ATUL BAJAJ

ATUL BAJAJ (Querist)
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25 August 2011 tx 4 reply.....i knows these provisions very well as per relevant sec 139 & 11 but i want to know the relevance of substantially financed by government. as i heard from some one if college is substantially financed by government then no need to file i.tax return as well as audit report. however in addition to this i find in real life certain college following this practice. is there was any such proviso which no longer valid now. if u have any reference then please reply as earliest possible.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 August 2011 Since your trust is neither owned by the Government nor any fund has been financed by the Government. It is only grants given to you. Now, who will decide whether the grants are taxable or not or the income earned by your trust is to be taxed or exempted. Definitely by the Assessing Officer and without filing of the return how can you be sure that all your income are exempted from Tax?

Ramaya is correct that when there are specific provision for filing of the return you have to comply with the same.