Which individuals are eligible to file the ITR 7 Form?

·         If an individual owns a property that is solely or partially used for charitable or religious purposes and is bound by a legal obligation or trust, they must file ITR 7 under section 139(4A).

·         Section 139 (4B) of the Income Tax Act is applicable to political parties. According to Section 13A, these parties are exempt from submitting income tax returns if they file their annual returns using Form ITR 7.

·         As per section 139 (4C), the ITR 7 must be filed by specific entities, which include

·         Associations engaged in scientific research,

·         News agencies,

·         Associations falling under section 10 (23A), and

·         Other enlisted institutions under section 10 (23B).

      ·         As per Section 139 (4D) of the Income Tax Act, educational establishments including schools, colleges, and institutions are advised to file their income tax return using the ITR 7, as they are not covered under any other section of the Act.

      ·         As per section 139 (4E), the business trust is required to file its income tax return using Form ITR 7.

     ·         Investment funds that fall under Section 115 UB are required to file ITR 7 u/s 139 (4F). It should be noted that returns of income or loss need not be provided under any provision of this section.

Which individuals are not eligible to file the ITR 7 Form?

Taxpayers who do not seek exemptions under Sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act, 1961, will not be eligible to file ITR 7. Simply put, ITR 7 is not applicable to taxpayers who do not claim benefits under these sections.

WHAT IS THE PROCEDURE FOR FILING ITR 7 FORM?

·         Assessees must strictly adhere to the procedure outlined below when submitting their Income Tax returns, as directed by the Income Tax Department:

-          Part A

-          Part B

-          Schedules

-          Verification

·         The verification document must be filled out with all the necessary information and any irrelevant portions must be struck out. Additionally, the verification must be digitally signed before submitting the final return. The person signing must mention their designation within the entity on whose behalf the return is being filed.

·         There is no need for any annexures or supporting documents to be submitted with the ITR 7 Form while filing your tax return. It is recommended that taxpayers verify the taxes deducted or collected on their behalf with the Tax Credit statement form 26AS.

Recommended guidelines for completing the ITR-7 form submission

Taxpayers can file ITR-7 using various methods outlined by the Income-tax department

- All details must be filled in correctly to avoid a defective or invalid return

- Tax and income figures must be rounded off to the nearest multiple of ten rupees

- Other figures must be rounded off to the nearest one rupee

- Negative or loss figures must have a "-" before the number

- Write "Nil" for figures with zero or no value

- Use "NA" if any item does not apply to the taxpayer

 What is the way to file ITR 7 returns?

ITR 7 can be submitted to the Income Tax Department in the following ways:

- By filing the returns electronically with a digital signature certificate.

- By transmitting the return data and submitting the verified ITR V Return form.

- After filing, the assessee must print out the ITR V form. A signed copy must be sent via ordinary post to

Bag No.1, Electronic City Office,

Bengaluru - 560100 (Karnataka), and the other may be kept for personal records.

 Instructions on how to complete the verification document:

·         Fill in the necessary details on the verification document and cross out any irrelevant information. Before submitting the returns, ensure that the verification is signed correctly. Choose the appropriate designation/capacity of the person who signs the return.

·         Please be aware that making any false statements or providing misleading schedules can result in legal consequences. The concerned individual may face imprisonment and a significant monetary penalty. Therefore, exercise caution while providing information.

 Overview of the ITR 7 Form structure

The ITR 7 Form comprises two distinct components and nineteen schedules, namely:

Part A - General Information and

Part B – overview of the entire income and tax calculation relevant to the income eligible for taxation

The following schedules provide specific details for different sections:

- Schedule-I: Contains details of accumulated/set apart amounts under section 11(2)

- Schedule-J: Provides an investment statement of all funds as of the last day of the previous year

- Schedule-K: Includes particulars of the Author(s)/Founder(s)/Trustee(s)/Manager(s), etc.

- Schedule-LA: Offers detailed information for political parties

- Schedule-ET: Provides specific details for Electoral Trusts

- Schedule-HP: Includes the computation of income under Income from House Property

- Schedule-CG: Provides the computation of income under ITR

- Schedule-OS: Includes the computation of income under Income from other sources

- Schedule-VC: This contains information on voluntary contributions received.

- Schedule-OA: This provides general information related to business and profession.

- Schedule-BP: This schedule is used for computing income under the head "profit and gains from business or profession".

- Schedule-CYLA: This statement shows the income after set off of current year's losses.

- Schedule-MAT: This schedule is used for computing Minimum Alternate Tax payable under section 115JB(n).

- Schedule-MATC: This schedule is used for computing tax credit under section 115JAA.

- Schedule AMT: This schedule is used for computing Alternate Minimum Tax payable under section 115JC(p).

- Schedule AMTC: This schedule is used for computing tax credit under section 115JD.

- Schedule-SI: Presents the Statement of Income that is subject to special tax rates.

- Schedule-IT: Provides information on Advance Tax payments and Self-Assessment Tax payments.

- Schedule-TDS: Furnishes details of Tax Deducted at Source on Non-Salary Income.

- Schedule-TCS: Provides information on Tax Collected at Source.

- Schedule FSI: Requires details of Income Earned outside of India.

- Schedule TR: Requires details of Taxes paid outside of India.

- Schedule FA: Requires information on Foreign Assets.

 Electronic submission of audit reports

- The assesse is accountable for conducting an audit under section 44AB.

- The audit reports must include comprehensive details and be submitted to the income tax department and the report must also include the date of submission.

- The relevant information must be listed under the "Audit Information" section.