Income Tax

All you need to know about ITR 7 Form

ITR stands for Income Tax Return, and there are various ITR Forms that taxpayers should file. The applicability of ITR forms depends upon the income sources of the taxpayer, the income earned and the category of the taxpayer. The Income Tax Act 1961^[1] governs all kinds of ITR forms. In this article, we shall discuss ITR 7 Form.

What is ITR 7 Form?

This type of form is filed by individuals and companies that fall under the following sections:

• Section 139 (4A)
• Section 139 (4B)
• Section 139 (4C)
• Section 139 (4D)

Points to know about this form

There are certain essential points that should be known by a taxpayers filing this form:

• No document (including TDS certificate) is to be attached with this form while filing;
• It is advised to the taxpayers to match taxes deducted/collected/paid by or on behalf of them with Tax Credit Statement Form 26 AS;
• In case the assessee is liable for audit under section 44AB, and the accounts is audited by an accountant, then the details of the audit report with the furnishing date to the department should be filed under the head- Audit Information.

Eligibility criteria for filing ITR 7 Form

The following eligibility criteria for filing this form should be fulfilled:

• Return under section 139 (4A) should be filed by every person in receipt of income derived from the property held under trust or other legal obligation for charitable purposes or religious purposes or in part only for such purposes.
• Return under section 139 (4B) should be filed by a political party in case where the total income without giving effect to provisions of section 139A exceeds maximum amount that is not chargeable to income tax.
• Return under section 139 (4C) should be filed by the following:
  1. Scientific research association;
  2. News agency;
  3. An association or an institution referred to in section 19 (23A);
  4. Institution referred to in section 10 (23B);
  5. A fund or institution or a university or any other educational institution or any hospital or other medical institution.
• Return under Section 139 (4D) should be filed by every university, college or any other institution which don’t have to furnish return of income or loss under any other provision of this section.
• Return under Section 139 (4E) should be filed by every business trust that doesn’t need to furnish return of income or loss under other provisions of this section.
• Return under Section 139 (4F) should be filed by an investment fund referred in Section 115UB that doesn’t need to furnish return of income or loss under any other provisions of this section.  

How to file ITR 7 Form?

This return should be mandatorily filed online with the IT department in the following ways:

• By furnishing return electronically under digital signature;
• By transmitting data in the return electronically and submitting the verification of the return.

Once the return has been filed, the assessee is required to print two copies of ITR-V form, duly signed by the assessee, and one copy should be submitted by ordinary post, and the other copy may be retained by assessee.

What are the components of this form?

ITR 7 form is divided into two parts and 23 schedules.

Part-A: General Information

Part-B: Outline of the total income and tax computation in respect of income chargeable to tax.

• Schedule I: Details of amounts accumulated/set apart in the meaning of Section 11(2) in last years’ viz., previous years relevant to the current AY.
• Schedule J: Statement showcasing the investment of funds of the trust or institution as on the last day of the previous year.
• Schedule K: Statement of particulars about the author/founder/trustee/manager etc., of trust or institution.
• Schedule LA: Details in case of a political party.
• Schedule ET: Details in case of a electoral trust.
• Schedule VC: Details regarding any voluntary contributions received.
• Schedule AI: Aggregate of the income derived during the year, excluding the voluntary contributions.
• Schedule ER: Amount applied to charitable purposes or religious purposes in India- Revenue account.
• Schedule EC: Amount applied to charitable purposes or religious purposes in India- Capital Account.
• Schedule IE-1, IE-2, IE-3, IE-4: statement of income and expenditure.
• Schedule HP: Income computation under the head income from house property.
• Schedule CG: Income computation under the head capital gains.
• Schedule OS: Income computation under the head income from other sources.
• Schedule OA: General information regarding business and profession.
• Schedule BP: Income computation under the head profit and gains from business or profession.
• Schedule CYLA: Income statement after set off of current years’ loss.
• Schedule PTI: Pass-through income details from business trust or investment fund.
• Schedule SI: Income statement that is chargeable to tax at special rates.
• Schedule 115TD: Accreted income under Section 115 TD.
• Schedule FSI: details regarding income arising or accruing outside India.
• Schedule TR: Details of taxes paid overseas.
• Schedule FA: Foreign Assets details.
• Schedule SH: Details of shareholding in an unlisted company.

Conclusion

Individuals and companies that are eligible to file ITR 7 Form should comply with the details mentioned above. In case you have any query in filing this form, then seek the assistance of a professional.

Read our article: All you need to know about ITR-3 Filing