ITR 5 for Society

[Awmtea Nups]

The society is engaged as hand holding agency by the State Organic Mission whose main mission is to develop certified organic products and to link farmers with consumers. The society is in receipt of earmarked funds and disburse/incur the funds accordingly with some balance remaining at the end of FY but does not produce profit/surplus nor loss/deficit as it does not produce any revenue apart from earmarked funds received. Funds are transferred to Income & Expenditures a/c from Earmarked funds equal to the expenditures incurred as per the schemes and balance lying as fund balance in the balance sheet. While filing ITR 5 should the society fill up all the details of Balance Sheet and Profit & Loss or should the section 'No Account Case' suffice? Also, should the depreciation sheet be filled up for the assets procured under the funds as this has the effect of giving loss. Kindly Advice, thanking you in advance

AI Summary

ITR compliance for societies: reporting earmarked funds and depreciation on funded assets affects whether full accounts must be filed. The society receives earmarked scheme funds which are shown as fund balances on the balance sheet and transfers sums equal to scheme expenditures from earmarked funds to the Income & Expenditure account, resulting in no commercial revenue. Assets procured from those funds, if recorded with depreciation, will reduce the Income & Expenditure result and can produce an accounting loss, raising the compliance question whether full balance sheet and profit & loss details must be filed in ITR-5 or whether the 'No Account Case' option suffices.