Exemption U/s. 10(25) in ITR-7

[Guest]

Dear Sir / Madam,

I am an accountant of an Employee Gratuity Trust approved by CIT, eligible for Exemption U/s. 10(25). I have following questions with regard to filing of IT Return-

1. We have obtained Audit Report in regular format (not Form 10 B) as a condition for continuance of approval by CIT. How should we mention the same in ITR-7 ? Audit under which section?

2. Income of the trust fund is exempt under Sec 10(25). There is no option for 10(25) in ITR-7 . How can we claim the income as exempt.

thanking you,

Nagaraj

[Mohit Himmatsinghka]

Dear Nagaraj

No. You have to file ITR - 5 Since it is a Private Trust and you will be eligible to get Exemption under section 10(25) (iv) of Income Tax Act.

AI Summary

Exemption under section 10(25) for employee gratuity trusts requires filing the private trust return form to claim relief. An employee gratuity trust approved by the tax Commissioner is eligible for exemption under 10(25); the trust should file the return form applicable to private trusts rather than ITR-7, and report audit compliance according to the audit reporting requirement applicable to private trusts so the exemption is administratively recognised.