What if the charitable trust don’t file the income tax return within due date?

 

For charitable or religious trusts, the benefit of exemption under Section 11 (and Section 12) is linked to timely filing of return of income.

Here is the legal position:

1.  Statutory Provision

•  Section 12A(1)(ba) of the Income Tax Act says:

“The person in receipt of the income shall furnish the return of income within the time allowed under section 139(1) or within such further time as may be allowed under section 139(4), for the exemption under sections 11 and 12 to be available.”

So, if the trust does not file its return within the due date under Section 139(1) (or the extended period under 139(4)), then the exemption under Section 11 is denied.

2.  Judicial View

i)   Courts and Tribunals have upheld this:

•  Late filing = exemption lost.

•  Even if the trust has genuine charitable activities, exemption is not available unless the return is filed within due date.

3.  Practical Points

i)  Due Date for Trusts (AY 2025–26):

•  If audit not required: 31st July 2025

•  If audit under 12A(b) / 44AB required: 31st October 2025

•  If report in Form 10B / 10BB not filed in time → exemption also lost.

ii)  Condonation of Delay:
In genuine hardship cases, CBDT has power u/s 119(2)(b) to condone delay in filing return or Form 10B/10BB and allow exemption. Application must be made to the jurisdictional authority / CBDT.

Conclusion:
If a trust fails to file its return of income within the prescribed due date u/s 139(1) or 139(4), then it cannot claim exemption under Section 11/12. Only way out is to seek condonation of delay from CBDT in deserving cases.