Charitable trusts, NPOs must file IT returns, says top IT official
Filing the return of income tax was made mandatory for all non-profit organisations (NPOs) and charitable trusts.
HYDERABAD: Stating that filing the return of income tax was mandatory for all non-profit organisations (NPOs) and charitable trusts, Renu Jauhri, principal commissioner of income-tax (exemptions), New Delhi, said that the government had brought in several changes in the exemption provisions in order to avoid litigation.
She was addressing an outreach programme organised by the commissionerate of income-tax (exemption charge), Andhra Pradesh and Telangana, here on Friday. The event was aimed at explaining the new and amended provisions pertaining to the exemption provisions of the Income Tax Act.
Jauhri called upon chartered accountants and tax practitioners to be vigilant while filing returns on behalf of charitable trusts and NPOs.
“The government will bring in some more changes to make it easy for trusts and NPOs to file their returns given some of the difficulties being faced by the CAs,” she said.
B. Bala Krishna, commissioner of income tax (exemption charge), Hyderabad, said that non-profitable organisations and all existing and new NPOs were required to follow the new registration procedure for claiming exemption. Their registrations could be cancelled if there are specific violations, he said.
“Application is to be made online in Form 10A and provisional registration is granted without any verification in an automated manner by order in Form 10AC. Institutions seeking exemptions must be for the purpose of education or health and should not make any high profits as per the latest apex court orders,” Bala Krishna said.
Members of the Tax Bar Association, CAs, tax practitioners, V. Koteswaramma, JCIT (exemption) and Sudha Korivi, DCIT (exemption) attended.
