Question ID : 39348

079710

We are filing of ITR 5 of approved Gratuity Trust Fund (private discretionery trust) and the income is exempt u/s 10(25)(iv) . my query is that if we have to file Balance Sheet and Income and expenditure a/c. in ITR form then the system calculate tax @ MMR . Can we directly declare income as Exempt (without filling balance sheet /Income exp. a/c.) or declare in Exempt schedule or any other method pl. explain how to show in ITR

Answer ID : 79120

Show income as per income and expenditure account and claim exemption under section 10(25) in relevant schedule. Filing of Balance sheet and income and expenditure account is mandatory.

Answer ID : 79123

Sir You should file Form ITR 7 instead of ITR 5.I feel you have to redo the whole thing and work out he accumulation of the funds Calculation of tax will depend on the dis allowance and the utilized amount This is a very complicated return.You have to file the Balance Sheet Income Expenditure account and the Auditors Report Tax Audit Report electronically Trust is also required to give a notice of accumulation of income/s 11(2)(a) shall furnish the same electronically. I advise you to consult senior man revise the return urgently. Thanks CHARAN DASS SHARMA

---