Return Filling of Trust or institution - Income Tax - Ready Reckoner - Income Tax

Return Filling of Trust or institution Requirement of return filling of trust or institution [ u/s 139(4A) ] As per section 139(4A) Every person in receipt of income derived from property held under trust shall, if the total income respect of which he is assessable under this Act without giving effect to the provisions of sections 11 and 12 exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished u/s 139(1). Due date of filling of return [ Section 139(1) ] Every trust or institution mandatory to file income tax return, if fulfil the requirements of section 139(4A) within the due date specified u/s 139(1)/139(4). Due Date means a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force. (i.e. 31 st October) [ Section 139(1) explanation 2 ] Various form also file by the Trust or institution Due date for filing Form no. 9A (deemed application) Explanation 1(2) to section 11(1) Amendment w.e.f. AY 2023-24 (a) Time Limit for filling Form 9A Form 9A to be filed atleast 2 months before the due date of filing ROI, that is, by 31st August (b) Application for Condonation Delay if Form is not filed by 31st August Make application under section 119(2) for condonation of delay Power to condone delay in filing Form 9A delegated to CIT/ CCIT /PCIT. (c) Rate of tax applicable if form 9A Not file any specified income shall be taxable 30% on the aggregate of such specified income (excluding surcharge/ cess ) section 115BBI(1) Specified Income includes - income accumulated or set apart in excess of 15 of the income where such accumulation is not allowed under any specific provision of this Act If Form 9A is not filed on time, the income on which benefit is denied is liable to tax 30 % (excluding surcharge/ cess under section 115BBI). (d) If application of income is less than 85 of income, difficulty in quantifying exact amount of deemed application without finalizing the accounts/audit report in Form 10B or 10BB . Possibility of the amount stated in Form 9A being different from the exact amount of deemed application ( permissible deemed application ) in Form 10B or 10BB and ROI. Important Notification Circular Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby allows those trusts / institutions which have furnished audit report on or before 31st October, 2023 in Form No. 10B where Form No. 10BB was applicable and vice-versa, to furnish the audit report under clause (b) of the tenth proviso to section 10(23C) and sub-clause (ii) of clause (b) of section 12A(1) of the Income-tax Act, 1961 , in the applicable Form No. 10B / 10BB for the assessment year 2023-24, on or before 31st March, 2024. [ Circular No. 2/2024 dated 05.03.2024 ] Further Extension of due date - Those trusts/institutions/funds, for which the date of 31st March, 2024 was prescribed to furnish the audit report in the applicable Form No. 10B / 10BB , by the above mentioned Circular No. 02/2024 dated 05.03.2024, the CBDT in exercise of the powers conferred under section 119 of the Act, hereby further allows such trusts / institutions/ funds to furnish such audit report in the applicable Form No. 10B / 10BB on or before 10 th November, 2024. No application for condonation of delay in filing of Form 9A / 10 / 10B / 10BB shall be entertained beyond three years from the end of the assessment year for which such application is made. The time limit for filing of such application within three years from the end of the assessment year will be applicable for application filed on or after the date of issue of this Circular. A condonation application should be disposed of, as far as possible, within six months from the end of the month in which such application is received by the Competent Authority. [ Circular No. 16/2024 dated 18.11.2024 ]