ITR deadline for Charitable Trusts is Extended to Nov 30

Income Tax Deadline Extended: Charitable Trusts Get Extra Time Until November 30.

The Income Tax Department has provided charitable trusts, religious organizations, and professional bodies with a one-month extension to file their income tax returns. 

ITR deadline for Charitable Trusts

The new deadline now falls on November 30, offering organizations more time to meet their tax obligations.

Additionally, the deadline for the submission of audit reports for the fiscal year 2022-23 by funds, trusts, institutions, universities, educational establishments, and medical institutions using Form 10B/10BB has been extended by one month, now set to close on October 31, 2023.

In further relief for taxpayers, the Income Tax Department has postponed the deadline for filing Income Tax Returns in Form ITR-7 for Assessment Year 2023-24. 

Originally due on October 31, 2023, this extended deadline grants organizations involved in charitable and religious activities, research, professional bodies, political parties, and electoral trusts until November 30, 2023, to complete their tax return submissions.

What Are Charitable Trusts in India?

Charitable trusts, as the name implies, exist to benefit people. They are established with the aim of improving the lives of those who may not be able to help themselves. These trusts primarily focus on addressing issues like poverty, lack of education, public health, support for religious activities, and other charitable causes.

Major reasons behind the formation of charitable trust in India:

1. Public Benefit: Charitable trusts are created to serve the greater good and provide assistance to those in need.

2. Perpetual Existence: They often have a long-lasting presence, ensuring their charitable mission continues over time.

3. Tax Exemption: Charitable trusts may enjoy tax benefits, encouraging more resources to be directed toward their charitable activities.

What are the Types Of Charitable Trust In India?

There are two kinds of charitable trusts that share similarities but cater to different purposes.

1. Charitable Lead Trust:

• This type of charitable trust divides its proceeds, with a portion going to a charity and the remaining principal distributed among beneficiaries.
• The donor retains control over the trust property, and any interest generated from the trust's assets benefits either the charity or the trust's beneficiaries.
• After the trust ends, the donation goes to a person chosen by the donor, not necessarily to the charity.

2. Charitable Remainder Trust:

• In this charitable trust, individuals receive income from assets they previously placed in the trust, typically non-income-producing assets.
• The assets are assigned to a charity for a specified period, and once this period concludes, the charity gains complete control over the trust's assets, along with any interest or profits they've generated.
• The specified term can be for a set number of years or until the donor's passing.

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