ITR-7 Return Filling
Applicability:- This ITR Return is applicable to persons falling under section 139(4A) or 139(4B) or 139(4C) or 139(4D). Section 139(4A) is applicable to Charitable & Religious Trusts. Section 139 (4B) is applicable to Political Parties. Section 139 (4C) is applicable to Associations engaged in scientific research, University and other Educational Institutions, Institutions under section 10(23A), Institutions under section 10(23B), News Agency. Trusts formed wholly for charitable or religious purposes and which do not intend to do any commercial activities are provided with certain income tax benefits under the Indian Income Tax Act, 1961. Its mandatory for a trust to get itself registered under section 12AB of the Income Tax Act,1961 in order to claim exemption under section 11. Registration should be applied for in form No 10A.
Various Exemptions Available to Trust:- 1. Under section 11, any income derived from property held under trust which is wholly for charitable or religious purpose shall be exempt under income tax subject to certain conditions. 2. In respect of Electoral trusts, any voluntary contributions received by them shall not be included in its total income provided the required conditions are fulfilled. 3. Income of an Educational Institute is exempt under section 10(23C)(iiiab)/(iiiad)/(vi). 4. Income of a hospital or other Institution shall be exempt subject to fulfillment of certain conditions.