Introduction
Trust formed for charitable or religious purposes which are not intended to do commercial activities are allowed various benefits under the Income-Tax Act, inter-alia, exemption under section 11.
The term religious purpose is not defined under the Income-Tax Act. However, Section 2(15) of the Act defines "charitable purpose" to include relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility.
Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless—
- (i) such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and
- (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed 20% of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year;
- Who has to obtain PAN?
- A charitable trust who is required to furnish return under Section 139(4A)
- Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory
- Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds the maximum amount which is not chargeable to tax.
- A charitable trust who is required to furnish return under Section 139(4A)
- Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any previous year
- Every importer/exporter who is required to obtain Import Export code
- Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory
- A person not covered in any of the above can voluntarily apply for PAN.
- Every non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds Rs. 2,50,000.
- How to apply for PAN?
- Online Application - An online application can be made from the website of UTIITSL or Protean (formerly NSDL eGov)
- Through PAN Application Center - Application for PAN can be submitted at the
(a) Protean (formerly NSDL eGov) (b) UTITSL
- PAN Application center
- What are the charges for obtaining a PAN?
- Documents and information to be submitted with PAN application?
- Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille” (in respect of the countries which are signatories to the Hague Apostille Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India
- Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
- Who has to sign the PAN application i.e. Form 49A/49AA?
- Contact Assistance
- FAQs
What is PAN?
PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. Given below is an illustrative PAN: ALWTG5809L
The fourth character of PAN represents the status of the PAN holder. A trust is represented by the character ‘T’ (E.g. ALWTG5809L).
Who has to obtain PAN?
PAN is to be obtained by following persons:
PAN is to be obtained by following persons:
How to apply for PAN?
Download PAN Application Form.
Form for changes or correction in PAN data
What are the charges for obtaining a PAN?
The charges for applying for PAN is Rs. 110 (Application fee Rs. 93 + 18% GST) for Indian communication address and Rs.1020 (including GST) for foreign communication address.
Documents and information to be submitted with PAN application?
A trust registered in India shall submit Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner along with the PAN application.
In case trust is formed outside India, it shall submit the following documents along with the PAN application form:
Who has to sign the PAN application i.e. Form 49A/49AA?
Application for PAN shall be signed by the trustee (left thumb impression in case trustee is unable to sign).
Contact Assistance
The Income Tax Department or Protean (formerly NSDL eGov) can be contacted in any of the following means
| Mode | Income Tax Department | Protean (formerly NSDL eGov) | UTITSL |
| Website | www.incometaxindia.gov.in | https://www.protean-tinpan.com/ | www.utiitsl.com |
| Call Center | 08069708080 | ||
| Email ID | tininfo@proteantech.in | ||
| Address | INCOME TAX PAN SERVICES UNIT (Managed by Protean (formerly NSDL eGov) at Protean eGov Technologies Limited, 4th floor, Sapphire Chambers, Baner Road, Baner, Pune - 411045 |
UTI Infrastructure Technology And Services Limited, Plot No.3, Sector 11, CBD Belapur Navi Mumbai PIN - 400614 |
If your PAN card is lost ?
If the PAN card is lost then you can apply for duplicate PAN card by submitting the Form for "Request for New PAN Card or/ and Changes or Correction in PAN Data" and a copy of FIR may be submitted along with the form.
If the PAN card is lost and you don't remember your PAN, then in such a case, you can know you PAN by using the facility of "Know Your PAN" provided by the Income Tax Department. This facility can be availed of from the website of Income Tax Department - www.incometaxindia.gov.in
You can know your PAN online by providing the core details like Name, Father's Name and Date of Birth. After knowing the PAN you can apply for duplicate PAN card by submitting the "Request For New PAN Card Or/ And Changes Or Correction in PAN Data".
What are the benefits of obtaining a PAN Card?
A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, availing of institutional financial credits, purchase of high-end consumer items, foreign travel, transaction of immovable properties, dealing in securities, etc. A PAN card is a valuable means of photo identification accepted by all Government and non-Government institutions in the country.
Is it mandatory to provide the Assessing Officer Code in Form 49A/49AA?
Yes, it mandatory to provide the Assessing Officer (AO) Code in Form 49A/49AA. AO Code (i.e. Area Code, AO Type, Range Code and AO Number) of the Jurisdictional Assessing Officer must be filled up by the applicant. These details can be obtained from the Income Tax Office or PAN Centre or websites of PAN service providers on www.utiitsl.com or www.tin-nsdl.com?.
What is the penalty for not complying with the provisions relating to PAN?
Section 272B provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN, even tough he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document in which PAN is to be quoted or intimating incorrect PAN to the person deducing tax or person collecting tax. Penalty under section 272B is Rs. 10,000.
Can a person hold more than one PAN?
A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.
If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
Is it mandatory to provide Aadhaar number in PAN application form?
It is mandatory to quote Aadhaar number in the PAN application form for every person who is eligible to obtain Aadhaar Number.
In case the person doesnot posses the Aadhaar number, the enrolment ID of Aadhaar form can be quoted.
Note: W.e.f. 01-10-2024, the benefit of quoting enrolment ID of Aadhaar form has been withdrawn. The taxpayer is required to quote his Aadhaar number in PAN application Form.
View all Frequently Asked Questions- Income from House Property
- The house property should consist of any building or land appurtenant thereto;
- The taxpayer should be the owner of the property;
- The house property should not be used for the purpose of business or profession carried on by the taxpayer.
- Profits and Gains from Business and Profession
- Profit and gains from any business or profession carried on by the assessee at any time during the previous year
- Any compensation or other payment due to or received by any specified person
- Income under the Capital Gains
- There should be a capital asset. In other words, the asset transferred should be a capital asset on the date of transfer;
- It should be transferred by the taxpayer during the previous year;
- There should be profits or gain as a result of transfer
- Income from Other Sources
Income from House Property
Conditions for Taxability
Profits and Gains from Business and Profession
The following incomes are chargeable to tax under the head Profit and Gains from Business or Profession:
Income under the Capital Gains
Conditions for Chargeability:
Income from Other Sources
Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head “Income from Other Sources”.
- Steps to fill form 26QB
- Log on to website e-filing portal (https://www.incometax.gov.in/iec/foportal/).
- Under 'e-file', click on 'e-Pay tax'
- Then Click on ‘New Payment’
- Select ‘Proceed’ under ‘26 QB (TDS on Sale of Property)’ field
- Fill the complete form as applicable.
(User should be ready with the following information while filling the form 26QB :
- Residential Status of seller
- PAN of the seller & buyer
- Communication details of seller & buyer
- Property details
- Amount paid/credited & tax details
- After submitting, the next page will ask to select the mode of payment i.e.,:
- Net banking;
- Debit Card;
- Pay at Bank counter;
- RTGS/NEFT; or
- Payment Gateway.
- Select the appropriate payment mode and click on continue to make the payment.
- On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.
- Steps to Download Form 16B
- Register & login on TRACES portal (www.tdscpc.gov.in) as taxpayer using your PAN.
- Select "Form 16B (For Buyer)" under "Downloads" menu.
- Enter the details pertaining to the property transaction for which Form 16B is to be requested. Enter the Form Type, Assessment Year, Acknowledgment Number, PAN of Seller and click on "Proceed".
- A confirmation screen will appear. Click on "Submit Request" to proceed.
- A success message on submission of download request will appear. Please note the request number to search for the download request.
- Click on "Requested Downloads" to download the requested files.
- Search for the request with request number. Select the request row and click on "HTTP download" button.
I. Steps to fill form 26QB :
II. Steps to Download Form 16B:
Click here to go 'TDS on Sale of Property' page at TRACES Website
- What is the tax rate?
- How to pay Tax?
- Physical Mode - Payment by furnishing the hard copy of the challan at the designated bank
- e-payment mode i.e. making payment by using the electronic mode
What is the tax rate?
A trust is chargeable to tax as per the slab rates which are applicable to an individual (not being a senior citizen or super senior citizen).
How to pay Tax?
A trust can make payment of income-tax in following modes:-
- Is it mandatory for a trust to file return of income?
- Which form shall be used to file return of income?
- Whether e-filing of return is mandatory for a trust?
- Due dates for filing of return?
Is it mandatory for a trust to file return of income?
It is mandatory for a trust referred to in Sections 139(4A) , 139(4C), 139(4D) and 139(4E) to file the return of income.
Further, a trust (not covered in above provision) is required to file return of income if its gross total income exceeds the maximum amount which is not chargeable to tax.
Which form shall be used to file return of income?
A trust who is required to furnish return of income in accordance with provision of Sections 139(4A) , 139(4C), 139(4D) and 139(4E) shall file return in ITR 7 otherwise in ITR 5.
| ITR | Description | |
| ITR 5 | For persons other than- (i) individual, (ii) HUF, (iii) company and (iv) person filing Form ITR-7 | |
| ITR 7 | For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) only |
Whether e-filing of return is mandatory for a trust?
It is mandatory for a trust to file return of income electronically with or without digital signature. A trust may also file return of income under Electronic Verification Code. However, a trust liable to get its accounts audited under section 44AB shall furnish the return electronically under digital signature.
Due dates for filing of return?
The due dates of filing of return by a trust are as follows:
| Particulars | Due Dates |
| A trust who is required to get its accounts audited under the Income-tax Act or under any other law | October 31st of the assessment year |
| A trust who is required to furnish a report in Form No. 3CEB under section 92E | November 30 of the assessment year |
| In any other case | July 31 of the assessment year |
- View Refund/Demand
- Login to e-Filing website with User ID, Password.
- Go to Pending Actions and click on ".
- Response to Outstanding Demand
- How to Request for Refund Re-issue (in case of refund failure)
- Login to e-Filing website with User ID, Password.
- Go to Services and click on "Refund Reissue ".
- Create Refund Reissue request
View Refund/Demand Status
To view Refund/Demand Status, please follow the below steps:
How to Request for Refund Re-issue (in case of refund failure)
To request for Refund Re-issue, please follow the below steps:
Appeals
Income tax liability is determined by the Assessing Officer first. A tax payer aggrieved by various actions of Assessing Officer can appeal before Commissioner of Income Tax (Appeals). Further appeal can be preferred before the Income Tax Appellate Tribunal. On substantial question of law, further appeal can be filed before the High Court and even to the Supreme Court. Various appellate procedures at different levels of appellate authority are defined hereunder:
- Form to be used to apply for registration?
- Documents to be furnished along with application form?
Is registration of a trust mandatory?
It is mandatory for a trust to get the registration under section 12AB of the Income-tax Act, 1961 so as to claim exemption under Section 11.
Form to be used to apply for registration?
A trust is required to apply for registration in Form No. 10A
Documents to be furnished along with application form?
The documents which are required to be furnished along with application Form No. 10A are as follows:
(a) where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution;
(b) where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution;
(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;
(d) self-certified copy of the documents evidencing adoption or modification of the objects, if any;
(e) where the trust or institution has been in existence during any year or years prior to the financial year in which the application for registration is made, self certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; note on the activities of the trust or institution;
(f) self-certified copy of existing order granting registration under section 12A or section 12AB, as the case may be; and
(g) self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AB, as the case may be, if any.
Exemption
Exemption to a trust
Income of a charitable and religious trust is exempt from tax subject to certain conditions. The exemptions are provided to the trusts under various provisions, inter-alia, Section 10, Section 11, etc. Some of the exemptions allowed to a trust are as under:
- Section 11 provides exemption for income derived from property held under trust wholly for charitable or religious purposes to the extent such income is applied for charitable or religious purpose in India. However, this exemption shall be subject to certain conditions.
- In view of Section 12, income in the form of voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes shall also be exempt from tax (subject to certain conditions).
- Any voluntary contributions received by an electoral trust shall not be included in its total income (subject to certain conditions).
- Income of an educational institute is subject to exemption under Sections 10(23C)(iiiab)/(iiiad)/(vi).
- Income of a hospital or other institution shall be eligible for exemption if it satisfies the conditions prescribed under Sections 10(23C)(iiiab)/(iiiad)/(vi).