Income Tax: The Central Board of Direct Taxes (CBDT) has notified the Income-tax Return (ITR) form 7 applicable for filing of return for the Assessment Year 2024-25. The Board has already notified ITR forms 1 to 6 applicable for AY 2024-25.
ITR-7 is an income tax return form designed for entities such as firms, companies, local authorities, associations of persons (AOPs), and artificial judicial persons. It is used when these entities claim exemptions under specific sections of the Income Tax Act. It provides a structured format for these entities to report their income, expenses, and other relevant financial information for the assessment year.
The Central Board of Direct Taxes (CBDT)’s notification making ITR-7 applicable for the Assessment Year (AY) 2024-25 reflects a significant step towards streamlining tax compliance for specific categories of taxpayers, including trusts, political parties, institutions, and colleges. This move is indicative of the government’s ongoing efforts to enhance the transparency and efficiency of the tax administration process. By updating and specifying the applicability of ITR-7, the CBDT ensures that entities falling under sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act have clear guidelines for filing their returns, potentially reducing compliance errors and improving the ease of filing. – JSPCO
