Form ITR-7

The Income Tax Act, 1961, levies tax on income of entities earned in a specific financial year. The person liable to pay income tax hereinafter referred to as "assessee" could be an individual, partnership, Hindu Undivided Family, or any other business entity.

Taxpayers have been categorized in the Act to make tax compliances easy for everyone. Taxpayers shall compute income tax liability based on methods and conditions laid down in Income Tax Act, 1961. Apart from the category of taxpayer and methods for filling ITR, forms used for filing income tax return also vary as per the assessee filing the ITR. This article covers comprehensive information on Form ITR-7.

Eligible entities to file ITR-7

1. ITR-7 u/s 139(4A)

Those persons whose income is from property used either solely or partially for charitable or religious trust and such property must be held under a legal obligation or trust.

2. ITR-7 u/s 139(4B)

This section specifically applies to political parties. As per section 13A political parties are exempted from filing income tax return provided they file the annual return through form ITR-7.

3. ITR-7 u/s 139(4C)

Under this, ITR-7 is filed by following entities:

  • Association conducting scientific research
  • News agency
  • Association u/s 10(23A)
  • Other institutes enlisted u/s 10(23B)

4. ITR-7 u/s 139(4D)

Schools, colleges, and institutions not covered under any section of the Income Tax Act are required to file ITR-7 under this regulation.

5. ITR-7 u/s 139(4E)

Filing of Return of Income by a business trust

6. ITR-7 u/s 139(4F)

Filing of Return of Income by Investment Fund

Pay as you go grow pricing

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Basic

9899

all inclusive fees

Income tax return filing for a taxpayer with taxable income of less than Rs.10 lakhs.

Premium

15899

all inclusive fees

Income tax return filing for a taxpayer with taxable income of more than Rs.25 lakhs.

Factors to be kept in mind while filing ITR-7

Following key points shall be kept in mind while filing ITR-7:
  • Any extra documents, paperwork, or TDS certificates are not required to be submitted or affixed with return forms.
  • If the assessee has affixed any document with the return form, the department will revert it to the assessee.
  • Taxpayers must match the data of their tax collected, deducted, and paid with the figures shown in Tax Credit Statement Form 26AS.
Procedure to file ITR-7

The following is a convenient sequence to file Form ITR-7:

  • Part A
  • Schedules
  • Part B
  • Verification

Make sure to enter the information required in the verification document and strike out the one which is not applicable and such verification must be digitally signed before furnishing the final return. The person signing the return shall mention its designation in such an entity on behalf of whom the return is being filed.

Instructions to be followed while filing ITR-7

The income tax department has outlined several methods through which taxpayers can file ITR-7:

  • Every detail must be filed exactly as indicated therein else the return will be defective or invalid
  • Figures relating to tax and incomes must be rounded off to the nearest multiples of ten rupees
  • Other figures must be rounded off to the nearest one rupee.
  • Figures in loss or negative figures shall be written as “-“ before such number unless provided otherwise
  • Figures with zero or nil value shall be written as “Nil”
  • In case of any item doesn't apply to the assessee, write "NA" against it
Methods of filing ITR-7

The income tax department has outlined several methods through which taxpayers can file ITR-7:

  1. ITR-7 can be filed physically through a physical paper form
  2. It can be filed online by providing the Digital signature of the assessee.
  3. Submitting verification of return through Return Form ITR-V after sending return data electronically.
  4. Or the last, through bar-coded returns.

FAQ's

How is verification filed?

Fill the complete information on the verification document by striking out what doesn't apply to the entity. Verification must be duly signed before return filing.

Does ITR-7 require the furnishing of information about a tax audit?

Yes, in case an entity is required to get its account audited u/s 44AB and its accounts are audited by a chartered accountant, such entity must furnish the details in ITR-7 like details about audit report and date of furnishing such report to the department.

What are the consequences of false statements in return?

Any person making false statements in return or schedules is liable for prosecution u/s 277 of Income Tax Act 1961 with imprisonment and fine.

Who cannot file the return through ITR-7?

ITR-7 cannot be filled by the following taxpayers:

  • Individual, Companies, and HUFs
  • Those entities who have filed the return through new ITR-5 and ITR-6
How to download Income Tax Return Forms?

Download the Income Tax Return Forms through the following steps:

  • Visit the official website of income tax Income Tax India Filing
  • Click on the tab of Downloads on the homepage.
  • A list of forms will be available thereafter.
  • Select the form in an excel sheet or java utility.
  • Continue to fill the downloaded form for filing the return
What are the requirements to be fulfilled by the assessee after filing ITR-7?

Once the return is filed, the assessee shall get the print of two copies of the ITR-V form, one copy shall be sent through the post to the CPC office and the second copy shall be retained for record.

Who can file ITR 7 form?

ITR-7 must be filed by Companies, Firms, Local authority, Association of Person (AOP) and Artificial Judiciary Person that are claiming exemption in any of the following category :

  • Having income from charitable /religious trust- Section 139 (4A)
  • Having income from a political party – Section 139 (4B)
  • Having income from scientific research institutions – Section 139 (4C)
  • Having income from university or colleges or institutions or khadi and village industries – Section 139 (4D)
Who should not file ITR-7 Form ?

ITR7 cannot be used by a tax assessee who is not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C)or Section 139 (4D).

When should ITR-7 be filed ?

ITR-7 form is to be used when the tax assessee is a Trust, filing as a Company, Firm, Local authority, Association of Person (AOP) or Artificial Judiciary Person and is claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C)or Section 139 (4D).

What is the due date for filing ITR-7 Form ?

Due Date for all Tax Assessees, whose accounts are required to be audited, is 30th September. Due Date for Tax Assessees, whose accounts are not required to be audited, is 31st July.

Section 139(4A)

Presumptive Taxation Scheme for SMEs

Every person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contributions referred to in section 2(24)(iia) shall, if the total income in respect of which he is assessable as a representative assessee (the total income being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars, as may be prescribed, within the time allowed under section 139(1).

Section 139(4B)

Every person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contributions referred to in section 2(24)(iia) shall, if the total income in respect of which he is assessable as a representative assessee (the total income being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars, as may be prescribed, within the time allowed under section 139(1).

Presumptive Taxation Scheme for Professionals

Section 139(4C)

The following assessees shall now be required to file return of income in Form No. ITR-7 if the total income, without giving effect to the provisions of section 10, exceeds the maximum amount not chargeable to tax. Such return shall be filed in the same way as if it were a return required to be furnished under section 139(1).

Presumptive Taxation Scheme for Transporters

The assessees required to file return under these provisions are as under:

  • research association referred to in section 10(21);
  • news agency referred to in section 10(22B);
  • association or institution referred to in section 10(23A);
  • institution referred to in section 10(238); fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to section 10(23C) in sub-clause(via);
    • Mutual Fund referred to in clause (23D) of section 10;
    • securitisation trust referred to in clause (23DA) of section 10;
    • venture capital company or venture capital fund referred to in clause (23FB) of section 10;
  • trade union association referred to in sub-clause (a) or (b) of section 10(24).
  • body or authority or Board or Trust or commission (by whatever name called) referred to in clause (46) of section 10;
  • infrastructure debt fund referred to in clause (47) of section 10;

Section 139(4D)

fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to section 10(23C) in sub-clause(via);

Presumptive Taxation Scheme for Professionals

Section 139(4E)

Presumptive Taxation Scheme for SMEs
  • Every business trust, which is not required to furnish return of income or loss under any other provision of this section, has to furnish the return of its income in respect of its income or loss in every previous year.
  • All the provisions of the Income-tax Act, 1961 shall apply as if it were a return required to be filed under section 139(1)
  • Filing of Return of Income by Investment Fund [Section 139(4F)] – Income Tax

Section 139(4F)

  • Every investment fund referred to in section 115UB, which is not required to furnish return of income or loss under any other provision of this section, shall furnish the return of income in respect of income or loss in every previous year.
  • All the provisions of the Income-tax Act, 1961 shall apply as if it were a return required to be filed under section 139(1).
Presumptive Taxation Scheme for Professionals

When Return is to be filed as Statutory Obligation [ Sec. 139(1), (4A), (4B), (4C) ]

Taxpayer Minimum income to attract the provision of filling Return of Income
Company or Firm [ Sec. 139(1) ] Any Income or Loss
A person other than a company or firm Compulsory Return if taxable income ( plus deductions u/s 10A, 10B, 10BA and Sec. 80C to 80U ) exceeds the exemption limit.
A person in respect of income derived from property held under a Trust for Charitable or Religious purposes [ Sec. 139 (4A)] IF the income ( without giving exemption u/s 11 to 12) exceeds the amount not chargeable to tax.
Chief Executive Officer of every political party [Sec. 139(4B)] If the income ( without giving exemption u/s 13A) exceeds the maximum amount not chargeable to tax.
Scientific Research Association, News Agency, Association / Institute for control or supervision of a profession, institution for development of Khadi and Village Industries, Fund/Institution refereed to , Educational / Medical Institution, Trade Union etc. If the income ( without giving exemption u/s 10) exceeds the amount not chargeable to tax.
University / Educational Institution existing solely for educational purpose and not for the purpose of Profit if the aggregate annual receipt does not exceed Rs. 1 crore If the income ( without giving exemption u/s 10) exceeds the exemption limit.
Hospital / other institution existing solely for Medical Purpose and not for the purpose of Profit if the aggregate annual receipt does not exceed Rs. 1 crore. If the income ( without giving exemption u/s 10) exceeds the exemption limit.
Any University / College / Other Institution Any Income or Loss ( return has to be submitted whether there is income or loss. Such Return has to be submitted even if it is not required by any other provision)
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