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MCQ Self Challenge # 0061 on due date of Return for Charitable Trust

Due date of Return for Charitable Trust

Dear Professional Seniors & Friends,
Warm Greetings!

Here is the Next post of #MCQ on concept based practical professional knowledge on due date of Return for Charitable Trust in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 61.1: ABC trust is a charitable trust registered under sec 12A of Income Tax Act. During the F.Y. 2017-18, its gross receipts in the form of member contributions is Rs 20 Lakhs. Due date to file Income Tax return will be
A) 31st July as it is not required to get it’s accounts audited.
B) 30th September as it is required to get it’s accounts audited.
C) 30th September if it wants to claim exemption under Section 11 or 12.
D) None of the above.

MCQ 61.2: What if in the above question, ABC trust is not registered as charitable trust under Income Tax Act.

A) 31st July as it is not required to get it’s accounts audited.
B) 30th September as it is required to get it’s accounts audited.
C) 30th September if it wants to claim exemption under Section 11 or 12.
D) None of the above.

Have a Nice Day!

Sincere Regards
CA Sanjay Kumar Agrawal
Mobile: 9810116321

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————Answer MCQ Self Challenge # 0061———–

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

This post of MCQ is on provisions relating to due date of Income Tax Return for charitable trusts.

 

Answer to MCQ 61.1: C) 30th September if it wants to claim exemption under Section 11 or 12.

Answer to MCQ 61.2: A) 31st July as it is not required to get it’s accounts audited.

 

Practical Analysis for MCQ 61.1& 61.2:-

  1. Section 139 of ITA talks about filing return of income.
  2. Explanation 2 of that section provides for due dates of filing return which is as under
1)Any assessee who is required to furnish report of transfer pricing under Section 92E30th November of the A.Y.
2Companies30th September of the A.Y.
3)Audit requirement under Income Tax Act or any other law30th September of the A.Y.
4)Working partner of firm whose accounts are required to be audited30th September of the A.Y.
5)Others31st July of the A.Y.

 

  1. So to know the due date, we have to check whether trust is liable to get its accounts audited.
  2. Section 44AB of ITA does not mandate charitable trusts to get its accounts audited, rather the section provides tax audit criteria only on the basis of turnover of assessee.
  3. But if any charitable trust wants to claim exemption under Section 11/12 of ITA, it needs to comply with Section 12A of Income Tax Act.
  4. As per Section 12A(b), if charitable trust wants to claim exemption under Section 11/12 and its income exceeds maximum amount not chargeable to tax, it is required to get its accounts audited mandatorily.
  5. Based on the above analysis, correct answer MCQ 1: C) 30th September if it wants to claim exemption under Section 11 or 12.
  6. Correct answer MCQ 61.2: A) 31st July as it is not required to get it’s accounts audited since it is not a charitable trust hence not claiming any exemption under Section 11/12 of ITA, though not required to comply with Section 12A(b) of Income tax Act.

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

 

CA Sanjay Kumar Agrawal

Mobile: 9810116321

 

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