Trusts are created for religious or charitable purposes. According to the Income Tax Act, the trusts are eligible for several tax breaks because they do not engage in commercial or economic activity. They are made solely for the benefit of the poor and society.

A trust is considered charitable under Section 2(15) of the Income Tax Act of 1961 if it is established for the benefit of the general public rather than an individual or group of individuals.

What is the ITR-7 form?

Before the deadline specified in Section 139, the Income Tax Return for Trust is filed using Form ITR-7. Section 139 of the Income Tax Act states that the annual return filing deadline is September 30. If the trust does not wish to have its records and account verified, the annual return filing deadline is July 31.

Important Factors to Consider When Filing an Income Tax Return for a Trust –

The most crucial factor in determining whether the law established the trust.

Whether the activities listed in Section 2(15) of the Income Tax Act result in gross receipts of more than Rs. 25 lakhs, they are not to be considered for charitable or strictly religious purposes.

To determine whether the trust’s use or application of income falls under Section 13(2) of the Income Tax Act. Additionally, it must be established whether the “specified person” was involved in every trust transaction.

To see if the trust has submitted an application for registration on Form No. 1OA by the Income-Tax Act’s provisions.

To determine whether 85% of the trust’s income was used to fund its goals in the previous year.

To determine whether anonymous donations have been made and how they have affected the trust’s income.

To ensure whether an exemption from tax has been claimed under Section 11 and whether a return of income has been filed following Section 139(4A) of the Income Tax Act on the required Form ITR-7.

Documents Required –

• Charitable Institutions Pan card
• Details of all the members/directors of the Charitable Institution
• Payment and Receipt Statement
• Previous statements, if any,

According to the Income Tax Act’s rules, the trust that earns more than 2.5 lakhs annually must file returns. Multi Management Services is a genuine Trust return filing service provider. They perform, follow, and complete the necessary steps and procedures.