Online E-Filing of Society

Exemption From Income Tax

Income derived from property held under trust or of an institution wholly for charitable/religious purposes is exempt if 85% of the income is spent on the objects of the trust, during the year. however, when the amount spent is less than 85% of the income, the shortfall is taxable. The Income Tax Act has spared the income of a charitable trust from the scope of Income Tax when a trust spends more than or equal to 85% of its total receipts towards its object in India, then there is no tax on the balance of 15%.

Easy Loan Processing

Income Tax return filing helps charitable trusts in taking loans from various Financial Institutions. Most of the banks and NBFCs ask for ITR receipts from businesses for the latest three years when a business applies for a high-value loan like a long-term loan or working capital loan. Lenders consider ITR because the most authentic document supporting business turnover and income. Hence, you should regularly file income tax returns if you wish to take a loan in the future.

To Receive Government Grant

The prime advantage of income tax return filing of charitable is to easily procure the government grants in their field. If your trust is eligible as per the guidelines of the ministry/organization/department then only you can apply for the government grants. The funding declared by the concerned ministry or department is based on the income tax return, the profile of NGO and Annual Reports, Audit Reports. thus, ITR filing is very important to receive the government grant.

Define Net Worth

The ITR filed with the government defines the financial worth of an organization. It helps in tracking the net worth of an entity it shows companies turnover, its assets, and income, the track of ITR shows the financial capacity, and also increases the capital base of an individual.