Whether due date for the trust is 30th September or 31st July?

Whether due date for the trust is 30th September or 31st July?


Whether due date for the trust is 30th September or 31st July?

The most trending thing this weekend in respect of Income Tax is that Income Tax Return needs to be filled before 31/08/2018. The question is why this date. Why is that the return can be filed after 31/08/2018 but late fees will be levied?  The provision under section 234F says fees for default in furnishing return of income shall be levied where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of said section.

The time prescribed under section 139(1) is different for different assessees.

  1. Any assessee who is required to furnish report of transfer pricing under section 92E the due date for uploading income tax return is 30th November of the relevant Assessment year. This report is required basically when an international transaction takes place or there is a transaction between associated enterprises.
  2. All the companies need to file their return by 30th of September of relevant Assessment year.
  3. All the assessees who are required to get their books of accounts under Income Tax Act or any other law the due date is again 30th of September of relevant Assessment year.

On analysing this point in detail one may have the following observations:

(a) The word “required”: If the assessee voluntarily opts to get his books audited the benefit of extended due date is nevertheless available.

(b) When we talk about audit requirement it is not necessary audit under Income Tax Act, it is audit under any law. Therefore for trusts if they are indulged in trust audit the due date to file the return would be 30th

  1. The working partners of the firm whose accounts are required to be audited can again file the return upto 30th September of the Assessment year. Carefully note this extension of time is only for the working partners.
  2. For all the other assessees who file the return u/s 139(1) the due date for the same is 31st of July of the relevant Assessment Year. Note that for the FY 2017-18 this date is extended upto 31st August 2018.

To conclude, I would say that only for working partner of a firm which is required to get books of accounts audited, the due date is 30th September. For other partners, it is 31st July (Read 31st August  for AY 2018-19) only.

Lot many professionals believe that the due date for trust return filing is 31st July. This is not so. Since the trust are generally registered under the relevant state Act or under other laws & so required to get the books of accounts audited under the relevant laws. Resultantly, due date in such case would also be 30th september & not 31st July.

However, family trust may be an unregistered trust & may not require to carry out the audit under any other law. The due date in such case would be 31st July  (Read 31st August  for AY 2018-19).

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