Local Authority ITR Filing

This discussion clarifies whether local authorities and municipal corporations are required to file Income Tax Returns (ITR). The consensus is yes, they must file ITR 5 and pay income tax on their total income, subject to applicable rates and surcharges. While government organisations, they are not exempt from these obligations. Reference to the Finance Acts of 2021 and 2022 is advised for specific exemptions, rates, and surcharge details. The financial year for both government and private entities runs from April to March.