Income from charitable trusts and institutions are normally exempt from Income Tax under Section 11 and 12

Hence, these are not required to file return under Section 139 (1) as their income is less than Income tax slab rate.

Hence, this Section 139 (4A) has been introduced which makes it compulsory for trusts and institutions to file ITR if their income exceeds Basic Exemption Limit (without allowing exemption under Section 11 and 12)


As per Section 139(4A)

Every person in receipt of income -

(i) derived from property held under trust or any other legal obligation wholly or partly for charitable or

    religious purpose;


(ii) by way of voluntary contributions on behalf of such trust or institution

     must furnish a return of income if the total income in respect of which he is assessable as a

     representative assessee  (computed before allowing any exemption under sections 11 and 12) 

     exceeds the basic exemption limit.

     Return shall be in such form as may be prescribed (Prescribed form is ITR 7)

     Any failure on the part of the assessee would attract liability to pay interest and penalty

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.