ITR-7 Return Filing

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ITR-7 Return Filing

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Documents required For ITR-7 Return Filing

Statement from Bank
Bank statement of the Business.
Incorporation Certificate

Certificate of incorporation provided by the Foreign Government

ITR 7 Form Filing

ITR 7 Form
ITR 7 Form is an income tax return form that is required to be filed by companies, firms, local authorities, association of persons (AOP), and artificial judiciary persons who are claiming exemption under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) of the Income Tax Act, 1961. This form is used for filing the income tax return of entities that are required to furnish their income tax return under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) of the Income Tax Act. It must be filed electronically using digital signature or electronic verification code.
Who is eligible for ITR 7 Form filing?

ITR-7 form is meant for taxpayers who are registered as:

  1. Charitable trusts
  2. Religious trusts
  3. Political parties
  4. Scientific research institutions
  5. Universities, colleges or other institutions
  6. Khadi and Village Industries
  7. Any other association of persons (AOPs) or body of individuals (BOIs) referred to in section 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act, 1961.

Thus, these entities are eligible to file the ITR-7 form.

Who is ineligible for ITR 7 Form filing?

ITR-7 form is not eligible for individuals, companies, and HUFs. Additionally, those entities who have filed the return through new ITR-5 and ITR-6 are also not eligible to file ITR-7.

Structure of ITR 7 Form

ITR 7 Form is divided into the following parts:

Part A: General information about the trust, association, or institution

  • This part requires basic information such as name, address, PAN, etc.

Part B: Outline of the activities of the trust, association, or institution

  • This part requires information about the activities carried out by the entity during the previous year, such as donations received, application of income, etc.

Part C: Income details

  • This part requires information about the income earned by the entity during the previous year, such as income from donations, property, business, etc.

Part D: Particulars of tax computation and tax payments

  • This part requires details of tax computations, advance tax paid, TDS, etc.

Part E: Details of accumulated balances of income

  • This part requires information about the accumulated balances of income.

Part F: Audit details

  • This part requires details about the audit conducted on the entity’s accounts.

Part G: Statement of particulars

  • This part requires a statement of particulars required to be furnished under section 139(4E).

Verification

  • This section requires the signature of the person authorized to sign on behalf of the entity.
process of filing of itr 7 form

The process of filing ITR-7 form involves the following steps:

  1. Go to the Income Tax e-filing website and log in with your credentials.

  2. Download the ITR-7 form applicable for the relevant assessment year.

  3. Fill in the details of the trust or other entities such as name, PAN, address, and contact details.

  4. Fill in the details of the trustees, including their PAN, name, address, and designation.

  5. Fill in the details of the accounting period for which the return is being filed.

  6. Provide details of the income earned by the trust or other entities.

  7. Provide details of the expenses incurred by the trust or other entities.

  8. Calculate the total taxable income and tax liability based on the income and expenses.

  9. Fill in details of taxes paid, including TDS and advance tax.

  10. Compute the amount of tax payable or refundable.

  11. Verify the details in the form and ensure that they are correct.

  12. Generate the XML file and save it to your computer.

  13. Upload the XML file on the Income Tax e-filing website.

  14. Sign and verify the return using a digital signature certificate (DSC) or an Aadhaar-based OTP.

  15. After submitting the ITR-7 form, take a printout of the ITR-V acknowledgement and sign it.

  16. Send the signed ITR-V to the Income Tax Department’s Central Processing Centre (CPC) within 120 days of e-filing the ITR-7 form.

E filing audit reports of ITR-7 form

Yes, if the entity is required to get its accounts audited under section 44AB of the Income Tax Act, then it needs to file the audit report along with the ITR-7 form. The audit report should be filed in the appropriate form and should be digitally signed by the auditor. The following are the steps to e-file the audit report with the ITR-7 form:

  1. Log in to the e-filing portal of the Income Tax Department using your user ID and password.
  2. Select the “e-File” option and click on the “Income Tax Forms” option.
  3. Select the assessment year and ITR-7 form from the dropdown menu and click on “Continue.”
  4. Fill in the details in the ITR-7 form as required and click on the “Submit” button.
  5. After the ITR-7 form is submitted, select the “Upload Form” option from the dashboard.
  6. Select the appropriate audit report form and click on the “Continue” button.
  7. Fill in the details in the audit report form and upload the digitally signed copy of the report.
  8. Once the audit report is uploaded, click on the “Submit” button to complete the e-filing process.

It is important to ensure that the audit report is uploaded within the due date of filing the ITR-7 form.

DUE DATE AND PENALITIES OF ITR-7 FORM

The due date for filing ITR-7 form for taxpayers who are required to get their accounts audited is September 30th of the relevant assessment year. For taxpayers who are not required to get their accounts audited, the due date is July 31st of the relevant assessment year.

If a taxpayer fails to file their ITR-7 form before the due date, they may be subject to penalties. As per section 234F of the Income Tax Act, if the taxpayer files their ITR-7 after the due date but before December 31st of the assessment year, a penalty of Rs. 5,000 will be levied. If the return is filed after December 31st of the assessment year, the penalty will be Rs. 10,000. However, if the taxpayer’s total income does not exceed Rs. 5 lakh, the penalty for late filing will be limited to Rs. 1,000.

ITR-7 Return Filing FAQ’s

How is the verification filed? 

To file the verification, complete information must be filled out on the document by striking out what does not apply to the entity. The verification must be duly signed before filing the return.

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

 Yes, ITR-7 requires the furnishing of information about a tax audit if an entity is required to get its account audited under section 44AB and its accounts are audited by a chartered accountant.

What are the consequences of false statements in return? 

Making false statements in return or schedules is liable for prosecution under section 277 of Income Tax Act 1961 with imprisonment and a fine.

Who cannot file through ITR 7? 

Individuals, companies, and HUFs cannot file through ITR-7. Additionally, those entities who have filed the return through new ITR-5 and ITR-6 cannot file through ITR-7.

How to download Income tax returns form? 

To download income tax return forms, visit the official website of the income tax department, click on the Downloads tab on the homepage, select the form in an excel sheet or java utility, and continue to fill the downloaded form for filing the return.

What are the requirements to be fulfilled by the assesse after filing ITR 7? 

After filing ITR-7, the assessee must get a print of two copies of the ITR-V form, send one copy through the post to the CPC office, and retain the second copy for their record.

Who can file ITR 7 Form?

ITR-7 can be filed by companies, firms, local authorities, association of persons (AOP), and artificial judiciary persons that are claiming exemption in any of the following categories: having income from charitable/religious trust, having income from a political party, having income from scientific research institutions, having income from university or colleges or institutions or khadi and village industries.

Who should not file ITR 7 Form? 

A tax assessee who is not claiming exemption under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) should not file ITR-7.

When should ITR 7 be filed?

ITR-7 should 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?

The due date for filing ITR-7 for all tax assessees whose accounts are required to be audited is 30th September. The due date for tax assessees whose accounts are not required to be audited is 31st July.

What is ITR 7 Form? 

ITR-7 is a form filed by persons, including companies, falling under Section 139(4A), 139(4B), 139(4C), or 139(4D).

What is the difference between ITR 5 and ITR 7?

ITR-5 is filed by a partnership firm, an association of persons, the body of individuals, artificial judicial person, and cooperative societies, whereas ITR-7 is used by trusts and non-profit organizations.

What documents are to be attached with ITR 7 Form?

No documents, including the TDS certificate, need to be attached while filing ITR-7.