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Exemption u/s 10(25)(iv)

Aditya Nalpet (Articled Assistant) (61 Points)

21 May 2016

The assessee is a Gratuity Trust and has obtained approval from Income tax department under Part C of Schedule IV of Income Tax Act. we have filed return of income in ITR-7 for AY 2014-15 and AY 2015-16 by claiming exemption u/s 10(25)(iv) - Income received by trustees on behalf of approved gratuity fund. In the instance case the assessee can claim the exemption under above relevant section, there is no provision to select the relevant section in ITR-7. how to proceed with this?? in the intimation we received after processing return the claim has been disallowed.

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10 Replies

Anuradha Sharma (Service) (43 Points)
Replied 12 December 2016

please reply i have the same query as above

Harsh Singhal ( ) (81 Points)
Replied 12 December 2016

Hey aditya and anuradha, i know an answer to the query asked but its my personal opinion and i.e. the entity in the case mentioned is in nature of a private trust and hence the return is to be filed under ITR 5 and not in ITR 7. There you can avail the exemption under section 10(25) as mentioned in the case above. Hope this solves your query.

Take care !

Anuradha Sharma (Service) (43 Points)
Replied 13 December 2016

can u please exactly show the row in ITR 5 where i have to show that i will be claimimg exemption u/s 10(25)(iv).

Harsh Singhal ( ) (81 Points)
Replied 14 December 2016

Hey anuradha, if you go through the ITR 5 form you will find a schedule EI (short for Exempt Income) where u will enter the exempt income. And in this case, income will fall under column 'Others'.