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ITR FILING -PRIVATE TRUST

Ravichander RC (Service) (120 Points)

25 April 2023

Hi,

What is the ITR Form to be used in case of Private trust (yet to apply for registration under Income tax act for claiming exemption) and what is the Income tax rate applicable in such case ?

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2 Replies

CA Sorav Gupta (Chartered Accountant) (1005 Points)
Replied 26 April 2023

The income tax return of Charitable Trusts must be filed using ITR 5 or ITR 7.
In case the Trust is required to file an income tax return due to taxable income is in excess of the basic exemption limit, then ITR 5 can be filed.
In case the Trust is required to file an income tax return mandatorily under Sections 139 (4A) or 139 (4E) of the Income Tax Act, then ITR 7 must be filed.

The slab rate are:
First Rs. 2.50 L - Zero.
Next Rs. 2.50 L to Rs. 5 L - 5%
Next Rs. 5 L to Rs. 10 L- 20%
Next & Above Rs. 10 L- 30%

Surcharge:
10%, in case taxable income is above ₹ 50 lakhs.
15%, in case taxable income is above ₹ 1 crore.
25%, in case taxable income is above ₹ 2 crore.
37%, in case taxable income is above ₹ 5 crore.

Note- Cess @ 4% shall also be added.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)