A institution that provides mental-health rehabilitation and de-addiction services registered as a public trust. The public trust is given exemption under 80G. https://bit.ly/2V3Cu8i - Does the donations received by the public trust be counted towards income? - Does fees levied for de-addiction service or rehabilitation services count towards income of the public trust? - I have copies of ITR7 acknowledgment for last 3 financial years of this public trust. All the row entries in the ITR7 ackn. is zero. I know the fees levied from the patients for de-addiction program is arounf 5-6crores per year. How can the blank ITR7 form be explained? Looking forward to your expertise in helping me understand this dealing of the public trust. In case you want to contact over a phone call, please do on whatsapp call.
- Donation received is income unless it is received for capital purposes.
- Fees received is also income.
- Both should be a part of Receipts and expenditure account and ITR-7.
- It seems your case is picked for scrutiny and to give proper reply to the AO, please take assistance of expert CA. I can assist you.
A trust registered u/s 12AA of the Income Tax Act can claim exemption of its income earned in the form of donations and fees, subject to fulfilment of conditions specified u/s 11 to 13 of the Income Tax Act. Hence, the ITR acknowledgement shows zeros under respective rows, as the income is offered after claiming exemption. If you want to see the figures, you should see the Return in ITR 7 which runs into more than 20 pages.
I am not sure in what capacity you'd like to understand about this trust ? As a donor ? As the trust has registration u/s 80G, you can rely upon the 80G certificate issued to the trust. Having said this, I draw your attention to the following issues:
1) All the trusts have to seek renewal of registration u/s 12AA and 80G by filing all the relevant documents in the efiling portal. They should do so by 31st December 2020.
2) I find it surprising that the name of the institution is not displayed even in the Income Tax department portal in the list of exempt institutions at
http://office.incometaxindia.gov.in/exemptions/Lists/Exempted%20Institutions/AllItems.aspx?Paged=TRUE&p_CIT=DIT%28E%29%2CMumbai&p_ID=116503&PageFirstRow=19801&SortField=CIT&SortDir=Asc&&View=%7BADB8D65D-CDA5-4543-9A4B-E9568724A38C%7D
PS: Surprised to see the user rating. Nevertheless, I stand by my views.
Yes donation received is income. It has nothing to do with 80G.
Yes.
It is acknowledgement of return and not entire ITR. Please check entire ITR. The acknowledgement shows income i.e. receipts less expense.
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Thank you.
Hello Sir,
Here are my reply to your queries:
1. Yes, donation received by the trust be counted towards the income of the trust.
2. Yes, fees levied for de-addiction service or rehabilitation services count towards income of the trust.
3. Acknowledgement is not the complete Income Tax Return, acknowledgement will explain only the summary of the complete return. Please refer ITR Form for checking the complete Income Tax Return.
"ITR Form can be downloaded by logging into the income tax portal https://portal.incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?lang=eng
Also, if the trust is exempted under section 12AA/ 10(23C) of the income tax act, then there will be no tax amount and no taxable income in the acknowledgment of income tax return.
Thanks and Regards
Divya Chugh
Dear Sir,
Hope you are doing well !!
1. Yes.
2. Yes.
3.Its just an acknowledgement.
You need to go though ITR for complete details.
We may assist you for the same.
