ITR-7

A comprehensive guide to understanding the ITR-7 Form

What is the ITR-7 Form?

ITR-7 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).

No annexures required

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

E-filing 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 it to the department has to be filled under the head “Audit Information.”

From AY 2013-14, if a taxpayer is required to furnish an audit report under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(vi a), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJA, 80LA, 92E or 115JB, he shall file the report electronically on or before the date of filing the return of income.

Who is eligible to file the ITR-7 Form?

• Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
• Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable to income-tax.
• Return under section 139(4C) is required to be filed by every
  • scientific research association ;
  • news agency ;
  • association or institution referred to in section 10(23A);
  • institution referred to in section 10(23B);
  • fund or institution or university or other educational institution or any hospital or other medical institution.
• Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.

What is the structure of the ITR-7 Form?

The ITR-7 form has been divided into 2 parts and 23 schedules.

Part-A – General information
Part-B – Outline of the total income and tax computation with respect to income chargeable to tax.

• 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.
• Schedule-J: Statement showing the investment of all funds of the Trust or Institution as on the last day of the previous year.
• Schedule-K: Statement of particulars regarding the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc., of the Trust or Institution.
• Schedule-LA: Details in case of a political party.
• Schedule-ET: Details in case of an Electoral Trust
• Schedule-HP: Computation of income under the head Income from House Property.
• Schedule-CG: Computation of income under the head Capital gains.
• Schedule-OS: Computation of income under the head Income from other sources.
• Schedule-VC: Details of Voluntary Contributions received
• Schedule-OA: General information about business and profession
• Schedule-BP: Computation of income under the head “profit and gains from business or profession
• Schedule-CYLA: Statement of income after set off of current year’s losses
• Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB (n)

Schedule-MATC: Computation of tax credit under section 115JAA

• Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC (p)

Schedule AMTC: Computation of tax credit under section 115JD

• Schedule-SI: Statement of income which is chargeable to tax at special rates
• Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
• Schedule-TDS: Statement of tax deducted at source on income other than salary.
• Schedule-TCS: Statement of tax collected at source
• Schedule FSI: Details of income accruing or arising outside India
• Schedule TR: Details of Taxes paid outside India
• Schedule FA: Details of Foreign Assets

How do I fill out the ITR-7 Form?

Instructions for filling out ITR-7

• If any schedule is not applicable score across as “—NA—“.
• If any item is inapplicable, write “NA” against that item.
• Write “Nil” to denote nil figures.
• Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.
• All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

Sequence for filling out parts and schedules

The Income Tax Department advises assesses to follow the sequence mentioned below while filling out the income tax return.

• Part A
• Schedules
• Part B
• Verification

How do I file my ITR-7 Form?

This return form can be filed with the Income Tax Department in the following ways:

Offline:

• by furnishing the return in a paper form
• by furnishing a bar-coded return

Online:

• by furnishing the return electronically under digital signature
• by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V

When the return is filed online, 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.

Note that when the return filed on paper, the acknowledgement slip attached with the return form should be duly filled.

How to fill out the verification document?

Fill up the required information in the verification document. Strike out whatever is not applicable. Please ensure that the verification has been signed before furnishing the return. Write the designation of the person signing the return.

Please note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

Frequently Asked Questions

As an NGO, how does my organization claim tax exemptions?

In order to claim exemption, an NGO should make an application to the Commissioner of Income Tax for registration of the NGO. Such application is to be made in Form 10A. The following documents are required to be submitted :

• Form 10A
• The original instrument under which the NGO is established, or the Bye Laws & Memorandum of Association evidencing the creation of the NGO should be enclosed.
• Two copies of the Accounts of 3 previous years should be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of lesser No. of years may be submitted.

What is “charitable purpose” as defined by the Income Tax Act?

According to Section 2(15) of the Income Tax Act, “charitable purpose” includes:

• Relief of the poor
• Education
• Medical Relief
• The advancement of any other object of general public utility.
• Preservation of Environment(Including Watershed, forests and wildlife)
• Preservation of monuments or places
• Preservation of artistic or historic interest

Do political parties get tax exemptions?

Political parties receive 100% tax exemption on all income sources according to Section 13 of the Income Tax Act. However, they are required to file their Income Tax returns every Assessment Year along with their audited accounts, Income/ Expenditure details and balance sheet.