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Section-139(4A) : Income Tax Return of Charitable and Religious Trusts

Every person who is in receipt of the following income for which he is taxable, must file a return of income, if such income (computed before allowing any exemption under sections 11 and 12) exceeds the maximum amount not chargeable to tax:

  1. income derived from property held under trust or other legal obligation wholly for or charitable purposes or religious purposes, or in part only for such purposes; or

  2. income by way of voluntary contribution on behalf of such trust or institution.

The return of income must be furnished in Form No. ITR-7 and verified in the prescribed manner containing all the prescribed particulars. Such return of income must be furnished by the representative assessee within the time prescribed under section 139(1) electronically under digital signature or otherwise.

(A) Due date of filing return of charitable trust:

The due date of filing the return of income of charitable trust shall be 30th September of the assessment year as where the income of a charitable trust, before claiming exemption under section 11 to 12 exceeds the maximum amount chargeable to tax, its accounts are required to be audited. If it does not wish to take exemption under sections 11 and 12 then the due date shall be 31st July of the assessment year.

(B) Consequences of failure to furnish return

(1) If the trust or charitable institute fails to furnish the return of income or fails to furnish the same within the time allowed, then, the charitable trust shall be liable to pay a penalty under section 272A(2) which shall be Rs. 100 for every day during which the failure continues.

(2) Fee for default in furnishing return of income. [Section 234F] [w.e.f. A.Y. 2018-19]

(I) Amount of fee payable for late filing of return of income [Section 234F(1)]:

Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in section 139(1), he shall pay, by way of fee, a sum of,—

  1. Rs. 5,000, if the return is furnished on or before the 31st day of December of the assessment year;
  2. Rs. 10,000 in any other case:

However, the total income of the person does not exceed Rs. 5,00,000, the fee payable under this section shall not exceed Rs. 1,000.

(II) Provision applicable for return furnished for assessment year 2018-19 and onwards [Section 234F(2)]:

The provisions of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the 1st day of April, 2018.

(3) Exemption under sections 11 and 12 to the trust shall not be allowed if it does not furnish the return of income within the time allowed under section 139 [Section 12A(1)(ba)]


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