{“@context”:”https://schema.org”,”@type”:”BlogPosting”,”headline”:”Trust Annual Compliance in India: ITR-7, Form 10B, 12A Renewal and Complete Checklist”,”description”:”Charitable trusts in India must file ITR-7 annually, get a Form 10B audit, renew 12A and 80G registrations every 5 years, and apply 85% of income to charitable purposes. This guide covers every annual compliance obligation for public and private charitable trusts for FY 2025-26.”,”author”:{“@type”:”Person”,”name”:”Tradeviser Editorial”},”publisher”:{“@type”:”Organization”,”name”:”Tradeviser”},”datePublished”:”2026-10-02″,”inLanguage”:”en-IN”}

{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”Which ITR form does a charitable trust file?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”A charitable trust files ITR-7. This form is applicable to persons (including trusts, institutions, and societies) who are required to furnish a return under Sections 139(4A) to 139(4F) — primarily those claiming exemption under Sections 11 and 12. ITR-7 is filed online on the income tax e-filing portal and must be verified by the trustee or authorised signatory using a Digital Signature Certificate.”}},{“@type”:”Question”,”name”:”What is the 85% application rule for charitable trusts?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Under Section 11 of the Income Tax Act, a charitable trust must apply at least 85% of its income derived from property held under trust for charitable or religious purposes during the same financial year. If less than 85% is applied, the unapplied amount is taxable. The remaining up to 15% can be accumulated without any specific purpose. If genuine reasons prevent full application within the year, Form 10 allows accumulation for a specific purpose for up to 5 years.”}},{“@type”:”Question”,”name”:”How often must a trust renew its 12A registration?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Since the Income Tax (6th Amendment) Rules 2021, 12A registrations are no longer permanent. All existing and new registrations under Section 12AB are valid for 5 years and must be renewed before expiry. Trusts must apply for renewal by filing Form 10A at least 6 months before the expiry of the current registration period. Failure to renew results in the trust’s income becoming fully taxable from the date of expiry.”}},{“@type”:”Question”,”name”:”What is Form 10BD and why must trusts file it?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Form 10BD is the Statement of Donations received during the financial year, which must be filed by trusts and institutions registered under 80G by 31 May of the following year. It captures donor details (name, PAN, address), donation amounts, and donation mode. Once filed, the trust generates Form 10BE — the donation certificate issued to each donor, enabling them to claim the 80G deduction in their individual or corporate ITR. Failure to file attracts Rs. 200 per day penalty under Section 271K.”}},{“@type”:”Question”,”name”:”Is a public trust the same as a charitable trust under the Income Tax Act?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Not necessarily. A charitable trust in the income tax sense is one whose purposes qualify under Section 2(15) of the Income Tax Act — relief of the poor, education, yoga, medical relief, preservation of environment, preservation of monuments, or any other object of general public utility. A public trust registered under a state Public Trusts Act (like Maharashtra, Gujarat, Rajasthan) is a legal entity under state law, but it still needs to obtain 12A registration separately from the income tax department to claim tax exemption on its income.”}}]}

CA Madhusmita Padal

CA Madhusmita Padal is a Practicing Chartered Accountant with firms based in Odisha and Chennai. She specializes in taxation, company law, and auditing. She is passionate about simplifying complex concepts and making knowledge accessible to all.