Question ID :
31663
UNREGISTERED TRUST
There are two unregistered trusts. Both are having school under trust.One of which Gross receipt exceed 2 crore and another gross receipt below 2 crore. Sir, following are my questions
1) Which form of ITR to be submitted?
2) Whether audit required under both the cases?
3) If audit required than which form to be submitted (form 10B or 3CB3CD)?
Posted by
SUDHIR KUMAR
on
Jun 01, 2018
Filed Under
DIRECT TAXES
Its depend upon the objects of trust if trust is public charitable then ITR 7 if private trust then ITR -5. Form 10 B to be filed only when trust is registered us 12A otherwise Audit as per according to Trust deed . Further if trust is doing some commercial activity then Form 3CB3CD require to file.
Posted by
SANDEEP KAPOOR on
Jun 01, 2018
Answer ID :
68728
The trusts can claim exemption us 10(23C)(iiiad) if the schools are wholly or substantially financed by goverment as required by section 10(23C)(iiiad) and the gross receipts does not exceeds Rs. 1crore so accordingly ITR-7 will required to file. If the schools are not substantially or wholly financed by goverment or the gross receipts exceeds Rs. 1crore then the trusts are to be treated as AOP and ITR 5 will required to be submitted. Audit wll be required in case when the gross receipts exceeds Rs. 1crore. Form 10B is audit report for trusts registered us12AA. Hence in this cases 10B is not required.
Posted by
NIKITA LONGWANI on
Jun 04, 2018
Answer ID :
68730
ITR 5. Audit depends on Trust deed
Posted by
VINAY BHARGAV KUMAR G on
Jun 05, 2018
Answer ID :
68746
ITR 7 or ITR 5 as per object of the trust. Audit is required in Form 10B if it registered us 12AA of the Income tax.
Posted by
CA. SATISH CHAND GARG on
Jun 06, 2018
Answer ID :
69814
ITR 7 is applicable irrespective of the fact whether your trust is regd or not provided the income is derived from property held under trust for charitable purposes.
Posted by
SIVADAS CHETTOOR on
Jun 24, 2018