Section 139(4A): Charitable or Religious Trust or Institution to furnish the return of income under Income Tax Act, 1961

Section 139(4A) deals with requirement of filing return by the Religious and Charitable Trust.

The following are required to file income-tax return :

1. Every person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes.

2. Every person in receipt of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of S. 2.

The two further requirements which will make the filing of the return mandatory for the said trusts, etc., are:

1. the total income of the trust/institution should exceed the maximum amount which is not chargeable to income-tax .

2. such income is to be calculated without giving effect to the claim of deduction u/s 11 and 12.

Related Case:

S. 10(22), (23C), 12A, 139(4A), 272A(2)(e) of the IT Act, 1961—Exemption—The assessee is a trust running an educational institution and obtained exemption u/s 10(22), (23C) of the Act, 1961. Proceeding for levy of penalty u/s 272A(2)(e) was initiated on account of delay in filing the return. Assessee submitted his bonafide reasons for the same. However, during the parallel proceeding, the Tribunal granted relief to the assessee granting registration u/s 12A of the Act and which order became final due to non-challenging the same by the Revenue, therefore order of penalty levied u/s 272A(2)(e) has to be re-examined by Assessing Officer considering the effect of grant of registration in favour of the assessee u/s 12A of the Act—CIT Vs. Vidya Sagar Educational Trust (2009) 315 ITR 298 (Karn)

Reference:

As Per 139(4A), of the Income Tax Act, 1961-

Return of income

9. (4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).