Income Tax: Government Notifies FY22 Computer Filing Form for Trusts and Political Parties
The government has notified the tax return form to be completed by trusts, charities and political parties for the financial year 2021-22, in which assessees will be required to specify additional details on registration under any law other than the IT law.
A new field is added to Form ITR-7 asking if the political party is registered under Section 29A of the Representation of the People Act 1951, along with the registration number and date of registration .
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Nangia Andersen LLP Director, Neha Malhotra, said the additional disclosure requirements in RTI-7 are primarily quantitative in nature and are welcome as it would result in more complete and transparent reporting, leading to a reduction in cases of control.
Also, in ITR-7, political parties will be required to give details of voluntary contributions in different categories received by them during the fiscal year, Malhotra said.
Domestic and foreign contributions for donations of corpus funds have now been divided into two categories – corpuses representing donations for renovation or repair and other corpus funds.
In addition, the form requires additional information on dividend income, FII dividend income, and dividend income attributable to DTAA (double taxation avoidance treaty) rates.
Malhotra said this notification will allow enough time for assessees to understand and gather the information to be disclosed.
“It also ensures that tax authorities have enough time to develop a utility for ITR forms, avoiding last-minute problems,” she added.
ITR-7 is filed by a charitable/religious trust, political party, scientific research association, news agency association or institution, fund or institution or university or other educational institution or any hospital or other medical institution and university and college.