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Income tax Return

All Charitable Organisations having income exceeding the minimum exemption limit during the previous year are required to file their return of income. The ‘income’ for the purposes of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act. Such returns are to be filed with the Income-Tax Officer or the Assessing Officer under whose local jurisdiction they fall. The return is to be filed as per the provisions of section 139(4A) and (4C) in the manner provided in section 139 of the Act.

FILING OF RETURN MADE MANDATORY

  • The Finance Act, 2002 has inserted sub-section (4C) to section 139 making it mandatory for the organisations registered under section 10(21), 10(22B), 10(23A), 10(23B), 10(23C) etc. to file Annual Returns under section 139(1). Earlier no clear provision for filing of return by these organisations was available, and it was not very clear whether these organisations were required to file returns or not, though Bombay High Court held in a case that returns are required to be filed. Now this controversy seems to be resolved.

All Organisations or Trusts are required to file the return in Form No. 3A by the 30th September of the assessment year. The return must be accompanied by an Audit Report in Form 10B prescribed under Rule 17B of the Income-Tax Rule, 1962.

FILING OF RETURN BY UNREGISTERED ORGANISATIONS

  • Organisations which are not registered under the provisions of the Act, do not enjoy any exemption on their income hence, they are liable to file a return if the voluntary contribution received by them or their income exceeds the minimum exemption limit. Such organisa-tions should file their income-tax return in Form No. 2, if the income includes “business income” or in Form No. 3, if the income does not include “business income”.

DELAYED SUBMISSION OF RETURN OF INCOME

  • An organisation which fails to furnish its return of income within the due date can still submit its return of income any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier. For instance, a return of income for the financial year 2001-2002 can be submitted upto 31st March, 2004.

    Under section 272A(2)(e), any Voluntary Organisation which fails to furnish the return of income which it is required to furnish under sub-sections (4A) and (4C) of section 139 or fails to furnish it within the time allowed and in the manner required under that sub- section, it shall pay by way of penalty a sum of Rs. 100 for everyday during which the failure continues. Before imposing such penalty, an opportunity of being heard shall be given to the organisation.

DOCUMENTS TO BE ATTACHED WITH THE RETURN

    One set of the following documents are required to be attached with the return :

  • (i) Audit Report in Form 10B.

  • (ii) Balance Sheet.

  • (iii) Income and Expenditure Account.

  • (iv) Receipt and Payment Account.

  • (v) Copy of the Registration Certificate.

  • (vi) In case the organisation has accumulated income, resolution for accumulation.

  • (vii) Form 10 in which application for accumulation is made.

REVISION OR CORRECTION OF MISTAKES

  • The concerned organisation can file a revised return at any time before the expiry of one year from the end of the assessment year or completion of the assessment whichever is earlier only if there is any mistake or omission in the return. For instance, if the financial year for which the return is filed is 2001-2002 then a revised return can be submitted any time on or before 31st March, 2004, provided the assessing officer has not completed the assessment in the intervening period.

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