ITR-7 — Trust & NGO Return
The return an exempt organisation files.
ITR-7 is the return for entities claiming exemption under sections 11, 12, 10(23C) or 13A. It is due by 31 October where the accounts are audited, which for a registered trust or society they generally are.
The substance of the return is the application test: at least 85% of income has to be applied to the objects in the year. Where it is not, the shortfall can be accumulated under section 11(2) — but only by filing Form 10 before the return, which is the step most often missed.
The audit report in Form 10B or 10BB must be filed at least one month before the return. Filing it late costs the exemption for the year, not merely a penalty.
What is included
- Application of income computed against the 85% test
- Form 10 accumulation filing where needed
- Audit report in Form 10B or 10BB
- ITR-7 filed and verified
What we need from you
- Registration order under 12A or 12AB, and 80G
- Audited accounts and the audit report
- Donation register with donor PANs
- Details of corpus and accumulated funds
Questions
What happens if a trust applies less than 85% of its income?
The shortfall is taxable unless it is accumulated under section 11(2), which requires Form 10 to be filed before the return and the funds to be invested in specified modes and applied within five years.
Also in Income tax
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