The government has notified income tax returns form to be filled by trusts, charitable organisations and political parties for 2021-22 fiscal, in which assessees will be required to specify additional details of registration under any law other than the I-T Act.
The government has notified income tax returns form to be filled by trusts, charitable organisations and political parties for 2021-22 fiscal, in which assessees will be required to specify additional details of registration under any law other than the I-T Act.
A new field is added in the ITR-7 form, seeking whether the political party is registered under section 29A of the Representation of People Act, 1951, along with the registration number and date of registration.
Nangia Andersen LLP Director Neha Malhotra said additional disclosure requirements in ITR-7 are mostly quantitative in nature and are welcomed as this would result in more comprehensive and transparent reporting, leading to reduced instances of scrutiny cases.
Further, in ITR-7 political parties will have to give details of voluntary contributions under different categories received by them during the fiscal, Malhotra said.
Domestic and foreign contributions for corpus fund donations have now been further bifurcated under two heads — corpus representing donations for the renovation or repair and other corpus funds.
Further, the form requires additional information on dividend income, dividend income of FII and dividend income chargeable at DTAA (double taxation avoidance agreement) rates.
Malhotra said this notification will provide enough time for assessees to understand and collate the information required to be disclosed.
“This also ensures that tax authorities have enough time to develop a utility for the ITR forms, ensuring no last-minute glitches,” she added.
ITR-7 is filed by charitable/ religious trust, political party, scientific research association, Newsagency Association or institution, fund or institution or university or other educational institution or any hospital or other medical institution and university and college.
Source: https://www.zeebiz.com/personal-finance/news-income-tax-government-notifies-fy22-i-t-return-form-for-trusts-political-parties-182158
© 2018 CA Chandan Agarwal. All rights reserved.