Question ID : 39276

425727

I have to file return of a Charitable Trust running a School, which neither have a 12AA registration nor eligible to exemption under any clause of section 10(23C), Now my questions are: 1. Which ITR form is to be selected 5 or 7. 2. Whether Tax Audit u/s 44AB or any other Audit under the provisions of Income Tax Act. 3. Whether the trust is eligible for Basic tax exemption of Rs. 250000.

Answer ID : 78986

as the trust is a charitable trust, we assume that there is no division of surplus among the trustees. the trust will be assessed as AOP(not MMR) and will be assessed as an individual. use ITR 7. The basic exemption limit of Rs.2,50000/ will apply.

Answer ID : 78996

I presume that the trust is for charitable or religiuos purposes as mentioned in sec 139(4A) of the Act. The status may be Individual or AOP which again depends upon the facts of your case. It may attract 44AB as income will be computed u/s 28 if you have business income.

Answer ID : 79027

As the trust is not registered under 12AA it will be assessed as AOP. Hence, ITR 5 can only be used as form ITR 7 can be filed only if we enter the 12AA registration details. I think Sec 44 AB will be applicable.Basic exemption will be applicable.

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