CBDT Amends ITR -7 To Allow Taxable Income Of Assessees Eligible To File ITR -7 Liable For Tax Rate At The Rates Applicable To AOP

The Central Board of Direct Taxes (CBDT) has amended ITR -7 so as to allow taxable income of assessees eligible to file ITR -7 liable for tax rate at the rates applicable to AOP i.e. Slab rate applicable to Individuals.

The Board has notified the Income-tax (Twenty-Seventh Amendment) Rules, 2023.

Earlier to this amendment taxable income was liable for a 30% flat tax rate under section 115 BBI. The amendment is applicable from 1-4-2023 i.e. any ITR filed or to be filed on or after 1-4-2023.

As per the CBDT circular updated ITR-7 utility has now been released on 17-11-2023 so Trusts having any taxable income less than or more than Rs 2.50 Lakh will now be able to take benefit from the individual slab rate and no tax up to the basic exemption limit. Now if the income of the assessee eligible for ITR 7 is more than 15% accumulation and no form 9A or form 10 is filled up for such excess income, then such excess taxable income will now be out of the purview of 30% flat tax rate under the section 115 BBI. The assessee is now eligible to take benefit of the basic exemption limit and allowed the benefit of the Individual slab rate.

“This amendment is effective from the 1st April 2023 and applies to the assessment year 2023-24 relevant to the previous year 2022-23. It is hereby certified that no person is being adversely affected by giving retrospective effect to these rules,” the notification read.

Notification No. 94/2023

Date: 31/10/2023

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