06 July 2024
Yes, if a school is claiming exemption under section 10(23C)(iiiad) of the Income Tax Act, it is generally required to file its income tax return in Form ITR-7. For Assessment Year 2022-2023 (FY 2021-2022), if the school is required to file ITR-7, it typically needs to include the following financial statements:
1. **Balance Sheet**: This document provides a snapshot of the school's financial position at the end of the financial year. It includes details such as assets, liabilities, and equity.
2. **Profit and Loss Account (Income Statement)**: This statement shows the school's revenues, expenses, and profits or losses over the financial year.
Including these financial statements in the ITR-7 form is crucial because it helps the tax authorities assess the financial health of the school and verify its claim for exemption under section 10(23C)(iiiad).
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