ITR-7

ITR-7 FORM FILING

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

ELIGIBILITY CRITERIA TO FILE FORM ITR-7
Stated below are the various eligibility criteria for individuals and entitles to file using FormITR-7.

1. ITR-7 u/s 139(4A)
Individuals whose pay is from property which is used exclusively or partly for religious or charitable trusts, provided that such property is held under such legal obligation or trust.

2. ITR-7 u/s 139(4B)
This section is applicable for all entities/parties that are involved in politics and this is registered as political parties in India. Under section 13A political parties or organizations are exempt from filing income tax returns if they file their annual tax returns through Form ITR-7.

3. ITR-7 u/s 139(4C)
The organisations that record their filings under this section of ITR-7 are as follows:
A) Associations that are involved in scientific research.
B) News agencies or organisations.
C) Associations that fall under section 10(23A).
D) Other foundations or organisations that are enrolled under section 10(23B).

4. ITR-7 u/s 139(4D)
Organisations or entities such as schools, colleges, universities, and foundations which are not covered under any part of the Income Tax Act, are eligible and obligated to record ITR-7 under this section.

5. ITR-7 u/s 139(4E)
This section deals with the filing of return of income by a business trust.

6. ITR-7 u/s 139(4F)
This section deals with the filing of return of income by an Investment fund.

FACTORS TO BE CONSIDERED DURING FILING PROCESS OF FORM 1TR-7
The following factors have to kept in consideration during the filing process off Form ITR-7.
1) No extra documents or paperwork, or TDS certificates are required as submissions or need to be attached with the return forms.
2) If the individual or assesses has accidentally attached any document with
the return form, then the Income Tax  Department will return that back to the individual or assesses.
3) A taxpayer or taxpayers should ensure that the data of their tax collected, deducted, and paid, matches with the figures recorded in Tax Credit Statement Form 26AS.

EXAMPLE OF  FORM ITR-7

PROCESS TO DOCUMENT FORM ITR-7
Stated below is the usual sequence on how to document Form ITR
• Part A: Schedules
• Part B: Verification

An individual should always document the information that is required in the verification document while striking out the subsections which are not applicable. Then this verification has to be digitally signed before the final return is furnished. The individual who signs this  return has to mention his or her designation in the organization/entity on whose behalf this said return has been filed.

GUIDELINES TO FOLLOW WHILE FILING FORM ITR-7

The income Tax Department of India has outlined various methods by which taxpayers or individuals can file Form ITR-7. They are stated below:

1) Every detail must be documented exactly as indicated therein or else the return will be considered defective or invalid.
2) Figures that relate to tax and incomes should be rounded off to the nearest multiples of ten rupees.
3) Any other figures should be rounded off to the nearest one rupee.
4) Figures that falls under loss or negative, have to always be documented using this“-“ before such numbers, unless provided otherwise.
5) Any figures with zero or nil value must always be documented as “Nil”
6) In the case any category doesn’t apply to the individual/assessee, they should write “NA” against such a category.

PROCESS TO FILE FORM ITR-7
The Income Tax Department in India has outlined several methods or ways by which taxpayers can file  Form ITR-7:
1) Form ITR-7 can be filed offline through an offline paper form.
2) Form ITR-7 can be filed online when the assessee provides their digital signature
3) The submission of verification of return through Return Form ITR-V after sending the return data electronically.
4) Form ITR-7 can also be filed through bar-coded returns.

DIFFERENT CATEOGIES OF FORM ITR-7

SECTION 139(4A)

Any individual who has a receipt of income that is derived from property held under a trust or such legal obligation in whole or part for religious or charitable purposes, or of income being voluntary contributions referred to in section 2(24)(iia) shall, if the total income in respect of which the individual is considered assessable as a representative assessee (The total income being calculated 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, present a return of such income of the previous year in the prescribed form and is verified in the prescribed manner and setting forth such other particulars, as is prescribed, within the time frame allowed under section 139(1).

SECTION 139(4B)
This section is applicable for all entities/parties that are involved in politics and this is registered as political parties in India. Under section 13A political parties or organizations are exempt from filing income tax returns if they file their annual tax returns through Form ITR-7.

SECTION 139(4C)
The individual or assesses required to file return under these provisions are as follows:
1) Research organisations referred to in section 10(21).
2) News agencies or organisations referred to in section 10(22B).
3) An association of institute alluded to in section 10(23A)
4) An institution alluded to in segment 10(238); Asset or Organization alluded to in sub-provision (iv) or Trust or Establishment alluded to in sub-proviso (v) Or any College or other Instructive foundation alluded to in sub-statement (vi) or any Emergency clinic or other Clinical foundation alluded to area 10(23C) in sub-clause(via).
5) Mutual Fund alluded to in proviso (23D) of area 10;
6) Securitization trust alluded to in proviso (23DA) of area 10.
7) Venture capital organization or investment reserve alluded to in condition (23FB) of segment 10.
8) Trade association affiliation alluded to in sub-statement (a) or (b) of segment 10(24).
9) Body or authority or Board or Trust or commission (by whatever name called) alluded to in statement (46) of segment 10.
10) Infrastructure obligation store alluded to in provision (47) of area 10.

SECTION 139(4D)
An asset or entity alluded to in sub-provision (iv) or trust or foundation alluded to in sub-proviso (v) Or any college or other instructive establishment alluded to in sub-condition (vi) Or any emergency clinic or other clinical organization alluded to area 10(23C) in sub-clause(via);

SECTION 139(4E)
Every business trust or organisation which does not need to outfit the return of pay or misfortune under some other arrangement of this part, needs to outfit the arrival of its pay in regard of its pay or misfortune in each earlier year.
All the provisions of the Income-charge Act, 1961 will be applicable as though it were a return needed to be recorded under area 139(1)

SECTION 139(4F)
Every investment fund or organisation alluded to in segment 115UB, which isn’t required to outfit return of pay or misfortune under some other arrangement of this segment, will outfit the arrival of pay in regard of pay or misfortune in each earlier year.
All the arrangements of the Income-tax Act, 1961 will applicable as though it were a return needed to be recorded under area 139(1).

WHEN RETURN IS FILED AS STATUTORY OBLIGATION [ Sec. 139(1), (4A), (4B), (4C) ]Taxpayer Minimum pay to draw in the arrangement of filling Return of Income

Organization or Firm [ Sec. 139(1) ]  Any Income or Loss
1) Taxpayer minimum pay to draw in the arrangement of filling the return of Income.
2) An individual other than a company or firm or organisation.
3) An individual who has got pay from property held under a Trust for Charitable or Religious purposes [ Sec. 139 (4A)]. If the pay (without giving exception u/s 11 to 12) surpasses the sum not chargeable to burden.
4) Scientific Research Association, News Agency, Association/Institute for control or oversight of a calling, establishment for improvement of Khadi and Village Industries, Fund/Institution refereed to , Educational/Medical Institution, Trade Union etc. If the pay ( without giving exception u/s 10) exceeds the sum not chargeable to burden.
5) College or Educational Institution that exists exclusively for instructive or teaching reason and not with the end goal of Profit, if the total yearly receipt doesn’t surpass Rs.1 crore, If the pay (without giving exception u/s 10) surpasses as far as possible.
6) Hospitals/Clinic/other establishment which exist exclusively for medical Purposes and not with the end goal of Profit, if the total yearly receipt doesn’t surpass Rs.1 crore, If the pay ( without giving exception u/s 10) surpasses as far as possible.
7) Any University or College or Other Institution where any Income or Loss ( return must be submitted whether there is pay or misfortune. Such Return must be submitted regardless of whether it isn’t needed by some other arrangement.

The three different packages that Ace Alliance offers for Taxpayers are as follows.

  • Basic Package: Income tax return filing for a taxpayer with taxable income of less than Rs.10 lakhs.
  • Standard Package: Income tax return filing for a taxpayer with taxable income of more than Rs.10 lakhs.
  • Premium Package: Income tax return filing for a taxpayer with taxable income of more than Rs.25 lakhs.