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April 15, 2021

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IT Return

Filing of return: All Charitable Organisations having income exceeding the minimum exemption limit during the previous year are required to file their return of income. The ‘income’ for the needs of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act. The return is to be filed as per the provisions of section 139(4A) and (4C) within the manner provided in section 139 of the Act. It is mandatory for an organisation to file a return of income electronically with or without a digital signature. However, an organisation for which it is necessary to get its accounts audited under section 44AB? shall furnish the return electronically by using digital signature. After the filing of the return, the assessee shall take 2 print out of the ITR-V Form. One copy of ITR-V, duly signed by the assessee, has got to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). the opposite copy could also be retained by the assessee for his record.

Eligibility criteria for ITR form-7:

Persons who are eligible for filing ITR Form 7 will be as below:

  • Entities who have income from properties that are for a charitable or religious purpose – Section 139(4A)
  • Entities who have income from research project institutions, press agency then on- Section 139(4C)
  • Entities who have income from university or colleges or institutions or khadi and village industries – Section 139 (4D)
  • Individuals who have income from property that’s in name only of trust
  • Government or non Government educational institutions mentioned in Section 10(23A) and Section 10(23B)
  • Medical institutions like hospitals, clinics etc. Filing of return by unregistered organizations Organisations which aren’t registered under the provisions of the Act, don’t enjoy any exemption on their income hence, it is mandatory for them to file a return if the voluntary contribution/donation received by them or their income exceeds the minimum exemption limit mentioned in the act. Such organisations should file their income-tax return in ITR- 5.

Procedure of filing:

The return is often filed online on the E Filing Portal of income tax website.

Documents to be attached with the return:

 One set of the subsequent documents are required to be attached with the return :

  • Audit Report in Form 10B.
  • Balance Sheet.
  • Income and Expenditure Account.
  • Receipt and Payment Account.
  • In case the organisation has accumulated income, then the resolution for accumulation.
  • Form 10 during which application for accumulation is formed. Forms and due dates The return of income must be furnished in Form No. ITR-7 and verified within the prescribed manner containing all the prescribed particulars. Such return of income must be furnished by the representative assessee within the time prescribed under section 139(1) electronically under digital signature or otherwise. The maturity of filing of return shall be 30th October (as amended by Finance Act 2020, earlier it had been 30th September) of the assessment year as where the income of a public trust, before claiming exemption under section 11 to 12 exceeds the utmost amount chargeable to tax, its accounts are required to be audited. If it doesn’t wish to require an exemption under sections 11 and 12 then the maturity shall be 31st July of the assessment year.

Delayed submission/ revision/correction of mistakes:

 An organisation which fails to furnish its return of income within the maturity can still submit its return of income any time before the top of the relevant assessment year or before the completion of the assessment whichever is earlier. as an example, a return of income for the fiscal year 2018-2019 are often submitted up to 31st March 2020. If an organisation having furnished a return, discovers any omission or any wrong statement in its return, organisation may furnish a revised return at any time before the top of the relevant assessment year or before the completion of the assessment, whichever comes earlier.

Consequences of failure to furnish return

  1. Penalty for default in furnishing return of income: If the trust or charitable institute fails to furnish the return of income or fails to furnish an equivalent within the time allowed, then, the public trust shall be susceptible to pay a penalty under section 272A(2)(e) which shall be Rs. 100 for each day during which the failure continues.
  2. Fee for the delay in filing return of income. [Section 234F]

(I) Amount of fee payable for late filing of return of income [Section 234F (1)]: Where an organisation registered under section 139(4A) or 139(4C) required to furnish a return of income under section 139, fails to try to so within the time prescribed in section 139(1), the organisation shall pay, by way of fee, a sum of- • Rs. 5,000, if the return is filed on or before the 31st day of December of the assessment year. • Rs. 10,000 in the other case. However, the entire income doesn’t exceed Rs.5,00,000, the fee payable under this section shall not exceed Rs. 1,000.

3. Exemption under sections 11 and 12 to the trust shall not be allowed if it doesn’t furnish the return of income within the time allowed under section 139 [Section 12A(1)(ba)].

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