itr7
This query is : Resolved
03 September 2016
Can I avail exemption of sec. 11. If my trust is not registered with sec12a. Then how can I avail exemption. The trust is created for charitable and religious purpose. Please help.
11 September 2016
IF THE TRUST IS NOT REGISTERED UNDER SECTION 12A THEN TAX HAS TO BE PAID IF THE SURPLUS IS EXCEEDS THE LIMIT.
11 September 2016
thanks for your reply.in itr 7 there is a column for project details what will be the section of exemption for religious trust .
02 August 2024
In ITR-7, the column for "Project Details" is used to provide information about specific projects or activities undertaken by the trust or institution. For religious trusts or charitable organizations seeking exemptions under various sections, the specific section of exemption to be used will depend on the nature of the activities and the registration status of the trust.
Here’s a brief overview of how religious trusts should approach this:
### **Exemption Sections for Religious Trusts:**
1. **Section 10(23B)** - **Religious Trusts:**
- This section provides exemptions to income received by religious trusts. For such trusts, the income used for religious purposes is generally exempt from tax.
- If the religious trust is not registered under Section 12A, it can claim exemption under this section.
2. **Section 12A** - **Registration for Charitable/Religious Trusts:**
- If the trust is registered under Section 12A or 12AA, it can claim exemption under Section 11 and 12, which apply to charitable and religious trusts.
- Under this section, the income of a trust is exempt, provided it is used for charitable or religious purposes and follows the conditions set out in the Income Tax Act.
### **How to Report in ITR-7:**
1. **Project Details Section:**
- Provide detailed information about the projects or activities undertaken by the trust.
- Mention the projects related to religious activities if the trust is involved in such activities.
2. **Filing ITR-7:**
- Ensure that the correct section of exemption is selected based on the registration status of the trust.
- For religious trusts claiming exemption under Section 10(23B), you will need to fill out the relevant details in the ITR-7 form.
### **Important Points to Remember:**
- **Registration Status:** Verify whether the trust is registered under Section 12A. If not, you must claim exemption under Section 10(23B) if applicable.
- **Income Application:** Ensure that the income is applied or utilized for the intended religious purposes to qualify for exemptions.
### **Example:**
If your religious trust is not registered under Section 12A and you are claiming exemption under Section 10(23B), you would fill in the project details to reflect how the income is being used for religious purposes. This information helps the Income Tax Department understand the nature of the trust’s activities and ensures compliance with the tax laws.
### **Steps to Fill in Project Details:**
1. **Detailing Projects:** Clearly describe each project or activity.
2. **Purpose of Income:** Explain how the income is used in relation to the religious objectives of the trust.
3. **Documentation:** Keep records and documentation for each project or activity in case of future scrutiny.
Ensure that all relevant sections of ITR-7 are filled accurately and that you are compliant with the requirements of the Income Tax Act.
Here’s a brief overview of how religious trusts should approach this:
### **Exemption Sections for Religious Trusts:**
1. **Section 10(23B)** - **Religious Trusts:**
- This section provides exemptions to income received by religious trusts. For such trusts, the income used for religious purposes is generally exempt from tax.
- If the religious trust is not registered under Section 12A, it can claim exemption under this section.
2. **Section 12A** - **Registration for Charitable/Religious Trusts:**
- If the trust is registered under Section 12A or 12AA, it can claim exemption under Section 11 and 12, which apply to charitable and religious trusts.
- Under this section, the income of a trust is exempt, provided it is used for charitable or religious purposes and follows the conditions set out in the Income Tax Act.
### **How to Report in ITR-7:**
1. **Project Details Section:**
- Provide detailed information about the projects or activities undertaken by the trust.
- Mention the projects related to religious activities if the trust is involved in such activities.
2. **Filing ITR-7:**
- Ensure that the correct section of exemption is selected based on the registration status of the trust.
- For religious trusts claiming exemption under Section 10(23B), you will need to fill out the relevant details in the ITR-7 form.
### **Important Points to Remember:**
- **Registration Status:** Verify whether the trust is registered under Section 12A. If not, you must claim exemption under Section 10(23B) if applicable.
- **Income Application:** Ensure that the income is applied or utilized for the intended religious purposes to qualify for exemptions.
### **Example:**
If your religious trust is not registered under Section 12A and you are claiming exemption under Section 10(23B), you would fill in the project details to reflect how the income is being used for religious purposes. This information helps the Income Tax Department understand the nature of the trust’s activities and ensures compliance with the tax laws.
### **Steps to Fill in Project Details:**
1. **Detailing Projects:** Clearly describe each project or activity.
2. **Purpose of Income:** Explain how the income is used in relation to the religious objectives of the trust.
3. **Documentation:** Keep records and documentation for each project or activity in case of future scrutiny.
Ensure that all relevant sections of ITR-7 are filled accurately and that you are compliant with the requirements of the Income Tax Act.
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