In a significant update for taxpayers, the Income Tax Department has announced the availability of utilities for filing ITR-5, ITR-6, and ITR-7 starting today, January 01, 2025. This move will facilitate taxpayers, including firms, companies, trusts, and other entities, in complying with their annual tax filing obligations soon.
The updated utilities will be designed to incorporate all necessary changes, including provisions from recent amendments and circulars. Entities such as partnership firms (ITR-5), companies (ITR-6), and trusts (ITR-7) can now access the utilities on the Income Tax e-filing portal for immediate use.
The department has urged taxpayers to complete their filings well before the deadline to avoid last-minute technical challenges or penalties. Tax professionals and financial advisors have also been advised to familiarize themselves with the updated utilities to assist their clients effectively.
ITR-5 Form can be used by a person being a firm, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP) referred to in clause (vii) of section 2(31), local authority referred to in clause (vi) of section 2(31), representative assessee referred to in section 160(1)(iii) or (iv),Primary Agricultural Credit Society, Co‐operative Bank other than a primary agricultural credit society or a primary co‐operative agricultural and rural development bank, Primary Co operative Agricultural and Rural Development bank, any other cooperative society, society registered under Societies Registration Act, 1860 or under any other law of any State, trust other than trusts eligible to file Form ITR‐7, estate of deceased person, estate of an insolvent, business trust referred to in section 139(4E) , investments fund referred to in section 139(4F) and Any other AOP /BOI.
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However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4D)shall not use this form.
Income Tax Return Form ITR-6 can be used by a company as per section 2(17) of the Income Tax Act, This form is filed by a company other than a company which is required to file a return in Form ITR‐7.
As per section 2(17) of Income Tax Act, company means: ‐ (i) Indian Company (Domestic Company) (ii) Body corporate incorporated by or under the laws of country outside India (iii) Any institution, association or body, whether incorporated or not & whether Indian or Non‐Indian which is declared by general or special order of the board to be company,etc.
ITR-7 Form can be used by persons including companies who are required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D). The category of persons whose income is unconditionally exempt under various clauses of section 10, and who are not mandatorily required to furnish their return of income under the provisions of section 139, may use relevant ITR form for filing return.
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From A.Y.2022-23 onwards ITR-7 is not applicable to the persons whose income is unconditionally exempt.
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