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Meaning of ITR Form 7

Those companies who derive their income from properties that are for charitable or religious purposes need to fill ITR Form 7 for filing their income tax return. Properties which are held under trusts or legal obligations in parts or wholly also comes under this category.


Eligibility Criteria for ITR Form-7

Persons who are eligible for filing ITR Form 7 are as follows:

  • Entities who have income from properties that are for charitable or religious purpose - Section 139(4A)
  • Entities who have income from scientific research institutions, news agency and so on- Section 139(4C)
  • Entities who have income from a political party – Section 139 (4B)
  • Entities who have income from university or colleges or institutions or khadi and village industries – Section 139 (4D)
  • Individuals who have income from property that is in name of trust
  • Government or non Government educational institutions mentioned in Section 10(23A) and Section 10(23B)
  • Medical institutions such as hospitals, clinics etc.

Sequence for filing ITR Form 7

The assessee is required to follow a proper sequence while filing return of their income under the income tax act. The sequence mentioned in the act is:

  • Part A
  • Part B
  • Schedules
  • Verification

Structure of the ITR-7 Form

The ITR-7 form has been divided into 2 parts that are Part A, Part B and 23 schedules. They are as follows:

  • Part-A includes General information
    From the Assessment Year (AY) 2019-20, a taxpayer has to also provide complete information regarding the details of registration or approval.
  • Part-B includes the detailed outline of the total income and tax computation of the taxpayer with respect to income liable for taxation.
  • 23 Schedules :
    1. Schedule-I: Details of amounts accumulated/ set apart within the meaning of section 11(2) in last year’s viz., previous years relevant to the current assessment year.
    2. Schedule-J: Statement showing the investment of all funds of the Trust or Institution as on the last day of the previous year.
    3. Schedule-K: Statement of particulars regarding the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc.of the Trust or Institution.
    4. Schedule-LA: Details in case of a political party.
    5. Schedule-ET: Details in case of an Electoral Trust
    6. Schedule AI: Aggregate of income derived during the year excluding voluntary contributions
    7. Schedule ER: Amount applied to charitable or religious purposes in India – Revenue Account
    8. Schedule EC: Amount applied to charitable or religious purposes in India – Capital Account
    9. Schedule-HP: Computation of income under the head Income from House Property.
    10. Schedule-CG: Computation of income under the head Capital gains.
    11. Schedule-OS: Computation of income under the head Income from other sources.
    12. Schedule-VC: Details of Voluntary Contributions received
    13. Schedule-OA: General information about business and profession
    14. Schedule-BP: Computation of income under the head “profit and gains from business or profession
    15. Schedule-CYLA: Statement of income after set off of current year’s losses
    16. Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB (n)
    17. Schedule-MATC: Computation of tax credit under section 115JAA
    18. Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC (p)
    19. Schedule AMTC: Computation of tax credit under section 115JD
    20. Schedule PTI: Pass through Income details from business trust or investment fund as per section 115UA, 115
    21. Schedule-SI: Statement of income which is chargeable to tax at special rates
    22. Schedule 115TD: Accreted income under section 115TD
    23. Schedule FSI: Details of income accruing or arising outside India
    24. Schedule TR: Details of Taxes paid outside India
    25. Schedule FA: Details of Foreign Assets
  • Verification

Procedure for filling the Document of verification

The verification is the final step while using ITR Form 7. This verification is done electronically and called as E-verification. All the detailed information is to be entered in the E-verification form. Strike the information that is not applicable. Ensure that the verification has been signed before the furnishing of the return of income. The designation of the person signing the return of income should be mentioned.


Ways to file ITR-7 Form

There are various ways that are outlined by the income tax department to file the ITR Form 7 for the taxpayers . They are as follows:

  • The taxpayer can provide return in a physical paper form. These days this method is not promoted by the department.
  • The assessee can provide return under digital signature. This is compulsory for all political parties.
  • You can provide Bar coded return.
  • One can send return data electronically and then submit the E-verification of the return in Return Form ITR-V.

After the filing of the return , the assessee should print out two copies of ITR-V Form. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka).
The other copy may be retained by the assessee for his record.


E-filing of audit reports

If the assessee is liable for Audit u/s 44AB and the accounts have been audited by an accountant, the details of such audit report along with the date of furnishing is to be sent to the income tax department. It has to be filled under the head “Audit Information.”


Supplementary documents required

No document (including TDS certificate) should be attached with this return form while filing ITR-7.
Taxpayers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement Form 26AS.


Format of ITR Form-7

Format of ITR Form-7


Verification of Form ITR-7

While verification of ITR Form 7, the political parties are compulsory required to verify the return through digital signature certificate(DSC) by CEO or secretary, whereas other form of persons have the following options for verifying return:

  • Through DSC(digital signature certificate)
  • FIling returns electronically through EVC mode
  • First filing return , and then e-verification.

While verifying through DSC, one should provide the details of his designation and PAN details and if any false information is filed then he/she can be prosecuted under section 277 of the Act.


Conclusion

Companies who work socially like news agencies, companies working under trust, entities having properties for charitable and religious purposes, educational institutes, scientific research institutes, medical institutes and so on also need to file return of their income under the income tax act 1961. This type of all the organizations requires to fill ITR Form 7 while filing their return. Detailed information regarding their general terms, tax liabilities, incomes and more are to be filled in this form. This form is mandatory to be filled by the associations while filing the return of their income.


Frequently Asked Questions

Q- Is filing ITR Form is mandatory?

Yes, to file return of income tax one must fill ITR forms which states detailed information of the taxpayer and his or her tax liabilities and deductions.


Q- Who cannot filI TR Form 7?

ITR Form-7 is not filed by an individual, company, HUFs and those who file an income tax return in new ITR Form 5 and ITR Form 6 .


Q- Can AOP file ITR 7?

Any person claiming exemption under section 11, or covers under section 139(4A),(4B),(4C) and(4D) can file ITR-7 i.e. AOP can file ITR-7.

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CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.