Latest Query & Reply

In ITR 7(Trust) without having 12 A number. Under which section educational expenses is to be claimed as deduction and also regional expense to be claimed as deduction for A.Y. 2018-19.

Reply

Dear Sir,

Where assessee is not registered under section 12A of Income Tax Act, 1961, as per section 10(23C)(iiiad) of Income Tax Act, 1961, income of any university or other educational institution existing solely for educational purposes and not for purposes of profit will be exempt, if the aggregate annual receipts of such university or educational institution do not exceed Rs.1 crore.

If your educational institution is covered under above provision then whole income of such educational institution will be exempt, otherwise income of said trust is treated normal business income and expenses incurred for business will be allowed accordingly.