Charitable Trust – Income Tax Return Overview


A trust is an entity that involves providing humanitarian and religious facilities to the people. It is established with the intention of well-being instead of earning profit; this is the reason why the Income Tax structure allows them to avail the benefits of tax exemption.


Eligibility for Tax Exemption 
There are certain requirements, which must be fulfilled to gain the benefits of tax exemption.

  • The trust should be registered with the Commissioner of Income Tax as a Charitable Trust and the registration must be made according to the guidelines of Section 12A of the Income Tax Act.
  • The property of the trust must be secure by a trust deed and it can only be used for charitable and religious activities
  • It must benefit all the people of the society rather than targeting any specific community or caste group or a settler.
  • Also, the point to be noted is exemption will only be available for the portion of income that is used for charitable and religious purposes.

Below is the list of Trusts that are liable for the ITR Filing

  • Research Associations
  • News Companies
  • Investor protection fund
  • Core settlement guarantee fund
  • Institutions & Funds
  • Securitization and Business trust
  • Universities and Educational Establishments
  • Mutual Funds and Investor Funds for Protection of investors
  • Venture capital fund and Debt funds
  • Trade unions
  • Body/Board/Trust/Commission

In what Situations Trust must do ITR Filing?

If the Trust earns more than 2.5 lakhs a year, then it must pay taxes as per the Income Tax Act. Additionally, if the annual turnover exceeds Rs. 50 Lakhs, they are liable to pay a surcharge of 10% on the total income and 30% in case it exceeds Rs. 1 Crore. However, Income Tax Surcharge is subject to marginal relief.


Due Dates for Trust ITR Filing 

The due dates for income tax filing for Trusts are as follows:

31st July: If the Trust is not liable to get its accounts audited.

30th September: If the Trust has to conduct an Income tax Audit

30th November: If the Trust is required to file Form No. 3CEB. Form 3CEB


How to File Income Tax Return for Trust?

In India, trusts can file Income Tax returns using ITR 5 or ITR 7.

  • ITR 5 is used, if the trust is filing ITR due to taxable income being over the basic exemption limit of 2.5 lakh.
  • ITR 7 is used, if the trust is required to file an income tax return mandatorily under Sections 139(4A) or139(4B) or 139(4C) or 139(4D) or 139(4E) or139(4F) of the Income Tax Act.

How can we help you with the smooth Trust Income Tax Filing Process?

First, we seamlessly process and verify your data for the collection then prepare it in the proper structure as per the stated requirements, then if required we assist you in carrying out the income tax audit under the guidance of experts to ensure that you comply with IT policies.

We make sure that you are aware of every step to maintain data transparency as well as security. To save your time as well as efforts, we at Muneembhai accomplish the complete process on your behalf.

Our service structure features end-to-end fulfillment under the guidance of our expert.


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