All about ITR-7 as applicable for A.Y. 2017-18

These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.

1. Assessment Year for which this Return Form is applicable

This Return Form is applicable for assessment year 2017-18 only i.e., it relates to income earned in Financial Year 2016-17.

2. Who can use this Return Form?

This Form can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).

3. Annexure-less Return Form

Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS). (Please refer to www.incometaxindia.gov.in).

4. Manner of filing this Return Form

This Return Form can be filed with the Income-tax Department in any of the following ways, –

(i) by furnishing the return electronically under digital signature;

(ii) by transmitting the data in the return electronically under electronic verification code;

(iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;

However, a political party shall compulsorily furnish the return in the manner mentioned at (i) above.

From assessment year 2013-14 onwards in case an assessee who is required to furnish a report of audit under section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW he shall file the report electronically on or before the date of filing the return of income.

5. Filling out the acknowledgement

Where the Return Form is furnished in the manner mentioned at 4(iii), the assessee should print out two copies of Form ITR -V. 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.

6. Codes for filling this Return Form

(i) Under the heading ‘Filing Status’ in the Return Form the relevant box needs to be checked regarding section
under which the return is being filed on the basis of following

Sr.No.	How the return is filed
i.	Before the due date as provided under section 139
ii.	After the due date under section 139(1) but before the expiry of one year from the end of relevant assessment year as per section 139(4)
iii.	Revised Return under section 139(5)
iv.	Modified return under section 92CD to give effect to advance pricing agreement entered with the Board
v	In response to notice under section 139 (9) for removal of defects
vi.	In response to notice under section 142(1)
vii.	In response to notice under section 148
viii.	In response to notice under section 153A/153C
ix.	Under section 119(2)(b) on an application to be made separately before the income-tax authority (The return shall be treated as valid only after the application/claim/relief under section 119(2)(b) has been admitted by the income-tax authority)

(ii) Under the head Audit Information, 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 (if filed before the return) to the department has to be filled. Further, if the assessee is liable to furnish other audit report, the section under which such audit is required and the date of furnishing it to the department (if audit has been carried out under that section) has to be filled. From A.Y. 2013-14 it has become mandatory to furnish audit reports (if the audit has been carried out) under the following sections electronically on or before the date of filing the return of income.

Section under which Audit report is mandatorily to be filed electronically (if the audit has been carried out) on or before the date of furnishing the return of income
Sr.	Section	Sl.	Section
1.	10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via)	9.	80-IB
2.	10A	10.	80-IC
3.	10AA	11.	80-ID
4.	12A(1)(b)	12.	80JJAA
5.	44AB	13.	80LA
6.	44DA	14.	92E
7.	50B	15.	115JB
8.	80-IA	16.	115VW

7. BRIEF SCHEME OF THE LAW- Before filling out the form, you are advised to read the following-

(1) Computation of total income

(a) “Previous year” is the financial year (1st April to the following 31stMarch) during which the income in question has been earned. “Assessment Year” is the financial year immediately following the previous

(b) Tax is chargeable on what is called ‘total income’; it has a definite technical meaning.

(c) Total income is to be computed as follows, in the following order:

(i) Classify all items of income under the following heads of income-

(A) “Income from house property”; (B) “Profit and gains from business or profession”; (C) “Capital gains”; and (D) “Income from other sources”. [There may be no income under one or more of the heads at (A), (B), (C) and (D)].

(ii) Compute taxable income of the current year (i.e., the previous year) under each head of income separately in the Schedules which have been structured so as to help you in making these computations as per provisions of the Income-tax Act. These statutory provisions decide what is to be included in your income, what you can claim as an expenditure or allowance and how much, and also what you cannot claim as an expenditure/allowance.

(iii) Set off current year’s head wise loss(es) against current year’s head wise income(s) as per procedures prescribed by the law. A separate Schedule is provided for such set-off.

(vi) From gross total income, subtract, as per procedures prescribed by the law, “deductions” mentioned in Chapter VIA of the Income-tax Act. The result will be the total income. Besides, calculate agricultural income for rate purposes.

(b) If income includes income of the nature referred to in section 115BBE, surcharge @25% on such income is chargeable. If total income exceeds Rs.1 crore, calculate surcharge on (total income minus income chargeable u/s 115BBE) at the applicable rate.

(c) In case, the tax liability computed as above is less than 18.5% of book profit, the company is required to pay minimum alternate tax (MAT) under section 115JB at the rate of 18.5% of the profit. The excess tax so paid is allowable to be carried forward for credit in the year in which tax liability under the normal provisions of the Act is more than MAT liability. Such carry-forward is allowable up to10years.

(d) Add Education Cess including secondary and higher education cess at the rate of 3% on the tax payable and surcharge thereon.

(e) Claim relief(s) as prescribed by the law, for double taxation and calculate balance tax payable.

(f) Add interest payable as prescribed by the law to reach total tax and interest payable.

(g) Deduct the amount of prepaid taxes, if any, like “tax deducted at source”, “tax collected at source”, “advance-tax” and “self-assessment-tax”. The result will be the tax payable (or refundable).

(3) A return of income can be filed in any of the following manners:

(a) Under section 139(1) i.e., within the “due date” prescribed by the law;

(b) Under section 139(4) i.e., after the expiry of the “due date” but before the expiry of one year from the end of the relevant assessment year;

(c) Under section 139(5) a return already filed, can be revised by filing a fresh return within one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier;

(d) Under section 92CD a return is modified to give effect to advance price agreement entered into with the Board.

(e) Under Section 139(9), defective/invalid returns can be filed afresh after curing the defects; Instructions to Form ITR-7 (AY 2017-18)

(f) Under section 142(1) i.e., pursuant to a statutory notice calling for the return;

(g) Under section 148 i.e., pursuant to a statutory notice u/s 149 for assessing or reassessing total income that has been either not assessed or under-assessed earlier;

(h) Under section 153A i.e. pursuant to a statutory notice calling for return in case of search;

(i) Under section 153C i.e. pursuant to a statutory notice calling for return.

(j) Under section 119(2)(b) i.e. pursuant to application to be made separately before an income-tax
authority

(4) Obligation to file return of income

(a) 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, or of income being voluntary contributions referred to in sub-section (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose 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.

(b) 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.

(c) Return under section 139(4C) is required to be filed by every –

(i) scientific research association referred to in section 10(21);

(ii) news agency referred to in section 10(22B);

(iii) association or institution referred to in section 10(23A);

(iv) institution referred to in section 10(23B);

(v) fund or institution or university or other educational institution or any hospital or other medical institution referred to in section 10(23C)(iv)/ (v)/ (vi) if the conditions mentioned in section 139(4C) are satisfied.

(d) Return under section 139(4D) is required to be filed by every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, which is not required to furnish return of income or loss under any other provision of this section.

(e) Return under section 139(4E) is required to be filed by a business trust, which is not required to furnish return of income or loss under any other provision of this section.

(f) Return under section 139(4F) is required to be filed by an investment fund referred to in section 115UB, which is not required to furnish return of income or loss under any other provision of this

(g) Return of income is also required to be filed by a person if his total income before allowing deductions under section 10A or section 10AA or Chapter VI-A exceeds the maximum amount which is not chargeable to income tax.

(h) The losses shall not be allowed to be carried forward unless the return has been filed on or before the due date.

(i) The deduction under sections 10A, 10AA, 80-IA, 80-IAB, 80-IB and 80-IC shall not be allowed unless the return has been filed on or before the due date.

8. Instructions for filling out this Form

The codes for nature of business to be filled in ‘Schedule BP –General’ are as Under-

Sector	Sub- Sector	Code
(1) Manufacturing Industry	Agro-based industries	0101
	Automobile and Auto parts	0102
	Cement	0103
	Diamond cutting	0104
	Drugs and Pharmaceuticals	0105
	Electronics including Computer Hardware	0106
	Engineering goods	0107
	Fertilisers, Chemicals, Paints	0108
	Flour & Rice Mills	0109
	Food Processing units	0110
	Marble & Granite	0111
	Paper	0112
	Petroleum and Petrochemicals	0113
	Power and energy	0114
	Printing & Publishing	0115
	Rubber	0116
	Steel	0117
	Sugar	0118
	Tea, Coffee	0119
	Textiles, handloom, Power looms	0120
	Tobacco	0121

	Tyre	0122
	Vanaspati & Edible Oils	0123
	Others	0124
(2) Trading	Chain Stores	0201
	Retailers	0202
	Wholesalers	0203
	Others	0204
(3) Commission Agents	General Commission Agents	0301
(4) Builders	Builders	0401
	Estate Agents	0402
	Property Developers	0403
	Others	0404
(5) Contractors	Civil Contractors	0501
	Excise Contractors	0502
	Forest Contractors	0503
	Mining Contractors	0504
	Others	0505
(6) Professionals	Chartered Accountants, Companies Secretaries, etc.	0601
	Fashion designers	0602
	Legal professionals	0603
	Medical professionals	0604
	Nursing Homes	0605
	Speciality hospitals	0606
	Others	0607
(7)  Service Sector	Advertisement agencies	0701
	Beauty Parlours	0702
	Consultancy services	0703
	Courier Agencies	0704
	Computer training/ educational and coaching institutes	0705
	Forex Dealers	0706
	Hospitality services	0707
	Hotels	0708
	I.T. enabled services, BPO service providers	0709
	Security agencies	0710
	Software development agencies	0711
	Transporters	0712
	Travel agents, tour operators	0713
	Others	0714
(8) Financial Service Sector	Banking Companies	0801
	Chit Funds	0802
	Financial Institutions	0803
	Financial service providers	0804
	Leasing Companies	0805
	Money Lenders	0806
	Non-Banking Finance Companies	0807
	Share Brokers, Sub-brokers, etc.	0808
	Others	0809
(9) Entertainment Industry	Cable T.V. productions	0901
	Film distribution	0902
	Film laboratories	0903
	Motion Picture Producers	0904
	Television Channels	0905
	Others	0906
(10) Other Sector [other than (1) to (9) above]		1001

9. SCHEME OF THE FORM

The Scheme of this form follows the scheme of the law as outlined above in its basic form. The Form has been divided into three parts. It also has twenty-five schedules. The details of these parts and the schedules are as under:-

(i) Part A-GEN mainly seeks general information requiring furnishing of personal information like name and

Instructions to Form ITR-7 (AY 201 7-1 8) address, PAN number, date of creation, fling status, other details and audit details ;

(ii) The second part, i.e., Part-B is regarding an outline of the total income and tax computation in respect of income chargeable to tax.

(iii) There are various schedules details of which are as under-

(a) 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.

(b) Schedule-J: Statement showing the funds and investments as on the last day of the previous year.

(c) Schedule-K: Statement of particulars regarding the Author(s)! Founder(s)! Trustee(s)! Manager(s), etc., of the Trust or Institution.

(d) Schedule-LA: Details in case of a political party.

(e) Schedule-ET: Details in case of an Electoral Trust

(f) Schedule AI: Aggregate of income referred to in section u!s 11 and 12 derived during the previous year excluding Voluntary contribution forming part of corpus as per section 11(1)(d) and voluntary contributions

(g) Schedule ER: Amount applied to charitable or religious purposes in India during the previous year – Revenue Account

(h) Schedule EC: Amount applied to charitable or religious purposes in India during the previous year– Capital Account [excluding application from borrowed funds and amount exempt u!s 11(1A)]

(i) Schedule-HP: Computation of income under the head Income from House Property.

(j) Schedule-CG: Computation of income under the head Capital gains.

(k) Schedule-OS: Computation of income under the head Income from other sources.

(l) Schedule-VC: Details of Voluntary Contributions received

(m) Schedule-OA: General information about business and profession.

(n) Schedule-BP: Computation of income under the head “profit and gains from business or profession”.

(o) Schedule-CY LA: Statement of income after set off of current year’s losses

(p) Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB

(q) Schedule-MATC: Computation of tax credit under section 1 15JAA

(r) Schedule AMT: Computation of Alternate Minimum Tax payable under section 1 15JC

(s) Schedule AMTC: Computation of tax credit under section 115JD

(t) Schedule-PTI: Statement of income from Business Trust or Investment Fund as per section 115UA, 115UB.

(u) Schedule-SI: Statement of income which is chargeable to tax at special rates

(v) Schedule 115TD: Accreted income under section 115TD

(w) Schedule FSI: Details of income accruing or arising outside India

(x) Schedule TR: Details of Taxes paid outside India

(y) Schedule FA: Details of Foreign Assets and Income

10. GUIDANCE FOR FILLING OUT PARTS AND SCHEDULES

(1) General

(i) All items must be filled in the manner indicated therein; otherwise the return maybe liable to be held defective or even invalid.

(ii) If any item is inapplicable, write “NA” against that item.

(iii) Write “Nil” to denote nil figures.

(iv) Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.

(v) 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.

(2) Sequence for filling out parts and schedules

(i) Part A

(ii) Schedules

(iii) Part B

(iv) Verification

11. PART A-GEN

Most of the details to be filled out in Part-Gen of this form are self-explanatory. However, some of the details mentioned below areto be filled out as explained hereunder:-

(a) It is compulsory to quote PAN.

(b) Codes for status:

Sr.	Status	Code	Sr.	Status	Code
i	Individual	01	vi	Body of individuals (BOI)	06
ii	Firm (other than the one engaged in profession)	02	vii	Artificial juridical person	07
iii	Firm engaged in profession	03	viii	Co-operative society	08
iv	Association of persons (AOP)	04	ix	Company as per section 25 of the Companies Act	09
v	Association of persons (Trust)	05	x	Local authority	10

(c) Tax payers are advised to furnish their correct mobile number and e-mail address so as to facilitate the Department in sending updates relating to demand, refund etc. In case a return is filed by an intermediary/professional, the email address of the intermediary as well as the assessee may be provided;

(d) Details of the project/ institution run by you- In this section write the name of the project/institution run by you. For example- If running educational projects/institutions then name of the school/college/university etc. need to be mentioned. Similarly, in case of the hospitals/research institutions the name of the hospital or research centre need to be mentioned. If more than one project/institution is run by the taxpayer, then mention the name of all the projects/institutions. The nature of activity and the classification of the activity engaged by the project/institution should be filed as below. In case the activity/classification falls under more than one head, all such heads may be specified.

Sl.	Nature of activity	Classification
i	Charitable	a	Relief of the poor
		b	Education
		c	Medical Relief
		d	Preservation of environment (including watersheds, forests and wildlife)
		e	Preservation of monuments or places or objects of artistic or historic interest
		f	Object of general public utility
		g	Development of khadi or village industries
ii	Religious	Religious
iii	Research	a	Scientific Research
		b	Social Research
		c	Statistical research
		d	Any other research
iv	News Agency	News Agency
v	Professional Bodies	a	Law
		b	Medicine
		c	Accountancy
		d	Engineering
		e	Architecture
		f	Company secretaries
		g	Chemistry
		h	Materials management
		i	Town planning
		j	Any other profession
vi	Trade union	Trade union
vii	Political	Political party
viii	Electoral trust	Electoral trust
ix	Others	a	Specified income arising to a body/authority/Board/Trust/Commission u/s 10(46)
		b	Infrastructure Debt fund u/s 10(47)
		c	Any other

(e) Section under which exemption claimed in respect of each project/institution to be specified as below:-

i	Section 10(21) read with section 35	ii	Section 10(22B)	iii	Section 10(23A)	iv	Section 10(23B)
v	Section 10(23C)(iiiab)	vi	Section 10(23C)(iiiac)	vii	Section 10(23C)(iiiad)	viii	Section 10(23C)(iiiae)
ix	Section 1 0(23C)(iv)	x	Section 10(23C)(v)	xi	Section 1 0(23C)(vi)	xii	Section 10(23C)(via)
xiii	Section 10(23D)	xiv	Section 10(23DA)	xv	Section 10(23FB)	xvi	Section 10(24)
xvii	Section 10(46)	xviii	Section 10(47)	xix	Section 11	xx	Section 13A
xxi	Section 13B

(f) Tick in the box to indicate the section under which the return is filed.

(g) All the boxes in the table for “Other Details” need to be filled, if applicable.

A. Where one of the charitable purpose is advancement of any other object of general public utility as per section 2(15) then specify whether such activity is of commercial nature. If yes, then specify the aggregate receipts in respect of each institution engaged in such activity.

B. Any university or other educational institution existing solely for educational purposes and not for purposes of profit; any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness etc. existing solely for philanthropic purposes and not for purposes of profit are required to fill the details mentioned herein.

C. If registered under section 12A/12AA, then provide the registration number and the date of the registration.

D. If you have received approval under section 35 then provide the approval reference number and the date of approval.

E. If you have received approval under section 80G then provide the approval reference number and the date of approval.

F. If there is any change in the objects or activities during the financial year then tick yes.

G. In case of a political party, fill out the details in this column along with schedule LA.

H. In case of Electoral Trust, fill out the details in this column along with schedule ET.

I. If registration under Foreign Contribution Regulation Act (FCRA) has been done, date of registration and registration number need to be mentioned. The total amount received from outside India during the financial year need to be written in the space earmarked for the same. The purpose for which the foreign contribution is received also needs to be specified.

(h) “Audit Details needs” to be filled up in this table. Audit is required to be done under different sections of the Act, including section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), section 12A, section 13A, section 44AB etc. Specify the section under which audit has been done in the space designated for the same in the return and date of furnishing the audit report.

12. PART B –TI

(a) Item 1 – 4ii: transfer figures from the appropriate Schedule.

(b) Item 4iii – 6: make adjustments as specified and enter the total as narrated in item 7.

(c) Claim of exemption u/s 10 is to be made in items 8 – 10.

(d) The income other than the exempt income u/s 11, 12, 13 and 10 shall form part of the four heads of income and should be entered in Schedule HP, CG, BP & OS and the amount be entered in item 13.

(e) Items 21 – 25: total of agricultural income to be mentioned for rate purposes; income chargeable at special rates and maximum marginal rates are to be mentioned separately. Anonymous donations, taxed @30%, need to be mentioned separately.

13. SCHEDULES

(a) Schedule- I: Under section 11(2), where 85% of the income is not applied or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set apart, either in whole or in part, for application to such purposes of India, such income so accumulated or set apart shall not be included in the total income of the previous year, if certain conditions are satisfied. One of the conditions, inter alia, is that the accumulation cannot be carried forward beyond five year.

Furnish the details of each financial year of accumulation; amount accumulated in respective years, whether the amount accumulated is invested in accordance with the provisions of section 11(5), purpose of accumulation etc.

(b) Schedule J: Here, mention the funds and investments of the trust or institution as on the last day of the previous year. The table given is self-explanatory.

(c) Schedule K: Here, mention the particulars regarding the author(s)/ founder(s)/ trustee(s)/ manager(s) etc., of the trust or institution with their names, address, PAN and Aadhaar number.

(d) Schedule LA: Section 13A of the Income-tax Act provides exemption to a political party in respect of income chargeable under the head “Income from house property”, “Income from other sources” or “capital gains” or Income by way of voluntary contributions received by it, subject to fulfilment of certain conditions mentioned therein. This schedule seeks to provide the information relating to fulfilment of those conditions.

(e) Schedule ET: Section 13B of the Income-tax Act provides exemption to an electoral trust in respect of income by way of voluntary contributions received by it, subject to fulfilment of certain conditions mentioned therein. This schedule seeks to provide the information relating to fulfilment of those conditions.

(f) Schedule AI: Aggregate of income referred to in section u/s 11 and 12 derived during the previous year excluding Voluntary contribution forming part of corpus as per section 11(1 )(d) and voluntary contributions are to be provided.

(g) Schedule ER: Amount applied to charitable or religious purposes in India during the previous year of revenue nature be provided.

(h) Schedule EC: Amount applied to charitable or religious purposes in India during the previous year of capital nature [excluding application from borrowed funds and amount exempt u/s 11(1 A)] be provided. (i) Schedule-HP,- Following points also need to be clarified,-

(i) Annual letable value means the amount for which the house property may reasonably be expected to let from year to year, on a notional basis: Deduction for taxes paid to local authority shall be available only if the property is in the occupation of a tenant, and such taxes are borne by the assessee and not by the tenant and have actually been paid during the year.

(ii) In item 3a, arrears of rent received and the amount of unrealised rent realised subsequently are to be mentioned after deduction @30% of such arrears of rent and unrealised rent realised.

(j) Schedule-CG,-

(i) Capital gains arising from sale/transfer of different types of capital assets have been segregated. If more than one capital asset within the same type has been transferred, make the combined computation for all such assets within the same type.

(ii) If more than one short-term capital asset has been transferred, make the combined computation for all the assets. Similarly, make the combined computation for all the assets if more than one long-term capital asset has been transferred.

(iii) For computing long-term capital gain, cost of acquisition and cost of improvement may be indexed, if required, on the basis of following cost inflation index notified by the Central Government for this purpose.

Sl.No.	Financial Year	Cost Inflation Index	Sl.No.	Financial Year	Cost Inflation Index
1.	1981-82	100	18.	1998-99	351
2.	1982-83	109	19.	1999-00	389
3.	1983-84	116	20.	2000-01	406
4.	1984-85	125	21.	2001-02	426
5.	1985-86	133	22.	2002-03	447
6.	1986-87	140	23.	2003-04	463
7.	1987-88	150	24.	2004-05	480
8.	1988-89	161	25.	2005-06	497
9.	1989-90	172	26.	2006-07	519
10.	1990-91	182	27.	2007-08	551
11.	1991-92	199	28.	2008-09	582
12.	1992-93	223	29.	2009-10	632
13.	1993-94	244	30.	2010-11	711
14.	1994-95	259	31.	2011-12	785
15.	1995-96	281	32.	2012-13	852
16.	1996-97	305	33.	2013-14	939
17.	1997-98	331	34.	2014-15	1024
35.	201 5-16	1081	36.	2016-17	1125

(iv) Item C of this Schedule computes the total of short-term capital gain and long-term capital gain (item A5 + item B3). Please note that if balance in item B3 in respect of long-term capital gain is a loss, same shall not be set-off against short-term capital gain. In such situation, the figure of item B3 would be entered as 0 and then the figures of item A5 be added in item C.

(k) Schedule-OS,-

(i) Against item 1a and 1b, enter the details of gross income by way of dividend and interest which is not exempt.

(ii) Against item 1c, indicate the gross income from machinery, plant or furniture let on hire and also such income from building where its letting is inseparable from the letting of the said machinery, plant or furniture, if it is not chargeable to income-tax under the head “Profits and gains of business or profession”.

(iii) Against item 1d, indicate any other income under the head other sources such as winning from lottery, crossword puzzles etc., income of the nature referred to in section 68, 69, 69A, 69B, 69C or 69D. The nature of such income is also required to be mentioned.

(iv) Income from owning and maintaining race horses is to be computed separately as loss from owning and maintaining race horses cannot be adjusted against income from any other source, and can only be carried forward for set off against similar income in subsequent years.

(v) Item 4 of this Schedule computes the total income chargeable under the head “Income from other sources”. If balance in item 3c from owning and maintaining race horses is a loss, please enter 0 and enter the total of item 2.

(l) Schedule VC (Voluntary Contribution) contains details of voluntary contributions received. In Part A fill the details of local receipts giving clear break up of grants received from Government, from companies under Corporate Social Responsibility also. In Part B of foreign contributions by way of voluntary contributions be entered.

(m) Schedule-BP (General and Computation of income),-

(A) In Schedule BP-General, information relating to business and professions which are of general in nature are to be provided. For example – nature of business carried on, number of branches, method of accounting adopted by the taxpayer etc.

(B) Computation of income

(i) The computation in this schedule has to be started on the basis of profit before tax as shown in profit and loss account.

(ii) In case any item of addition or deduction not covered by the items mentioned in this schedule be filled in residual items 12 and 16 of this schedule.

(iii) In case, agricultural income to be excluded on the basis of rule 7A, 7B or 8 (in business of growing and manufacturing tea, coffee etc.), it shall not be included in the item 5c of this schedule.

(iv) In A-21, net profit or loss from business or profession is to be computed, only in special cases, e.g. business of growing and manufacturing tea, coffee, etc., where rules 7A, 7B or 8 is applicable otherwise, the figure of profit/ loss as computed is A22 may be entered.

(v) Item B of this Schedule computes the total of profit and loss form speculative business. Please note that if balance in item B27 in respect of speculative business is a loss, same shall not be set-off against profit from non-speculative business. In such situation, only the figures of item A21 be entered in item D.

(vi) Item C of this schedule computes the total of profit or loss from specified business or profession. Please note that if balance in item C33 in respect of specified business is a loss, same shall not be set-off against profit from non-specified business. In such situation, only the figures of item A21 be entered in item D.

(n) Schedule-CYLA,-

(i) Mention only positive incomes of the current year in column 1, head wise, in the relevant rows.

(ii) Mention total current year’s loss(es), if any, from house property, business or profession and other sources (other than losses from race horses) in the first row against the heading loss to be adjusted under the respective head. These losses are to be set off against income under other heads in accordance with the provisions of section 71. The amount set off against the income of respective heads has to be entered into in columns 2, 3 and 4, in the relevant rows.

(iii) Mention the end-result of the above inter-head set-off(s) in column 5, head wise, in relevant rows.

(iv) Total of loss set off out of columns 2, 3 and 4 have to be entered into row ix.

(v) The losses remaining for set off have to be entered in row x.

(o) Schedule – MAT: Compute the book profit under section 115JB. The tax liability under said section shall be 18.5 per cent of the book profit so computed. The computation should be based on profit and loss account laid at annual general meeting in accordance with the provisions of section 129 of the Companies Act, 2013. Further, the computation in this Schedule be based on Form 29B. However, Form 29B is not to be attached with the return.

(p) Schedule MATC: Credit for MAT paid in assessment years 2007-08 and onwards in excess of the normal tax liability, is allowed to be set off against the normal tax liability of the current assessment year. However, the credit is restricted to the extent of the normal tax liability for current assessment year exceeds the MAT liability for that year.

(q) Schedule –AMT,- The assessee is required to fill the details of computation of Alternate Minimum Tax (AMT) payable under section 115JC (special provisions for payment of tax by certain persons other than a company). The tax liability under the section shall be 18.5 percent of the adjusted total income computed under the said section. The computation under this Schedule is to be based on Form No. 29C.

(r) Schedule –AMTC,- Mention the details for computation of tax credit where LLP is subject to Alternate Minimum Tax and the credit for the same is being carried forward to subsequent assessment years.

(s) Schedule PTI: Fill Income details from business trust or investment fund as per section 115UA, 115UB.

1. In column 2 of the table, fill the name of business trust or investment fund.

2. In column 3 of the table, fill the PAN of business trust or investment fund.

3 Against serial number (i), fill amount of income from House property in column number 6 and fill
TDS on such amount, if any, in column number 7.

4.  Against serial number (ii)(a), fill amount of income from short term capital gain in column number 6 and fill TDS on such amount, if any, in column number 7.

5. Against serial number (ii)(b), fill amount of income from Long term capital gain in column number 6 and fill TDS on such amount, if any, in column number 7.

6. Against serial number (iii), fill amount of income from other sources in column number 6 and fill TDS on such amount, if any, in column number 7.

7. Against serial number (iv)(a),(b),(c), fill income received from business trust or investment fund claimed to be exempt under section 10(23FBB), 10(23FD), etc. in column number 6.

(t) Schedule-SI- Mention the income included in total income which is chargeable to tax at special rates. (u)

Schedule 115TD- In addition to the income-tax chargeable in respect of the total income of the trust or institution, the accreted income of the trust computed in accordance with the provisions of section 115TD is chargeable to tax and such trust or institution is liable to pay additional income-tax and the maximum marginal rate on such accreted income.

(u) Schedule FSI-

(i) In this Schedule, fill the details of income, which is already included in total income, accruing or arising outside India.

(ii) For country code use the International Subscriber Dialing (ISD) code of the country.

(iii) The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.

(v) Schedule TR-

(h) In column (c) mention the tax paid outside India on the income declared in Schedule FSI which will be the total tax paid under column (c) of schedule FSI in respect of each country.

(ii) In column (d) mention the tax relief available which will be the total tax relief available under column (e) of schedule FSI in respect of each country.

(iii) The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.

(iv) Relief claimed under section 90 or section 90A or section 91 is to be filled in the respective columns.

(w) Schedule FA,-

(i) This schedule is to be filled up by a resident assessee. It need not be filled up by a ‘not ordinarily resident’ or a ‘non-resident’. Mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India. This should also include details of any account located outside India in which the assessee has signing authority, details of trusts created outside India in which you are settlor, beneficiary or trustee. Under all the heads mention income generated/derived from the asset. The amount of income taxable in your hands and offered in the return is to be filled out under respective columns. Item G includes any other income which has been derived from any source outside India and which has not been included in the items A to F and under the head business of profession in the return.

(ii) This schedule is to be filled in all cases where the resident assessee is a beneficial owner, beneficiary or legal owner. For this purpose,-

• Beneficial owner in respect of an asset means an individual who has provided, directly or indirectly, consideration for the asset and where such asset is held for the immediate or future benefit, direct or indirect, of the individual providing the consideration or any other person.
• Beneficiary in respect of an asset means an individual who derives an immediate or future benefit, directly or indirectly, in respect of the asset and where the consideration for such asset has been provided by any person other than such beneficiary.
• Where the assessee is both a legal owner and a beneficial owner, mention legal owner in the column of ownership.

(iii) (A) The peak balance in the bank account during the year is to be filled up after converting the same into Indian currency.

(B) Financial interest would include, but would not be limited to, any of the following:-

(1) if the resident assessee is the owner of record or holder of legal title of any financial account, irrespective of whether he is the beneficiary or not.

(2) if the owner of record or holder of title is one of the following:-

(i) an agent, nominee, attorney or a person acting in some other capacity on behalf of the resident assessee with respect to the entity.

(ii) a corporation in which the resident owns, directly or indirectly, any share or voting power.

(iii) a partnership in which the resident assessee owns, directly or indirectly, an interest in partnership profits or an interest in partnership capital.

(iv) a trust of which the resident has beneficial or ownership interest.

(v) any other entity in which the resident owns, directly or indirectly, any voting power or equity interest or assets or interest in profits.

(3) the total investment in col(5) of part (B) has to be filled up as peak investment held during the year after converting it into Indian currency.

(C) the total investment in col(5) of part (C) has to be filled up as peak investment in immovable property held during the year after converting it into Indian currency

(D) the total investment in col(5) of part (D) has to be filled up as peak investment (at cost) held during the year after converting it into Indian currency. Capital Assets include financial assets which are not included in part (B) but shall not include stock-in-trade and business assets which are included in the Balance Sheet.

(E) the details of peak balance/investment in the accounts in which you have signing authority and which has not been included in Part (A) to Part (D) mentioned above has to be filled up as peak investment/balance held during the year after converting it into Indian currency.

(iv) For the purpose of this Schedule, the rate of exchange for the calculation of the value in rupees of such asset situated outside India shall be the telegraphic transfer buying rate of such currency as on the date of peak balance in the bank account or on the date of investment.

Explanation: For the purposes of this Schedule, “telegraphic transfer buying rate”, in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made availableto that bank through atelegraphic transfer.

14. PART B-TTI-COMPUTATION OF TAX LIABILITY ON TOTAL INCOME

(a) In item 2a, fill the detailsof gross tax liability to be computed at the applicable rate.

(b) In item 1b and 3iii, fill the details of surcharge.. If income includes income of the nature referred to in section 115BBE, surcharge @25% on such income is chargeable. If total income exceeds Rs. 1 crore, calculate surcharge on (total income minus income chargeable u/s 11 5BBE) at the rate applicable.

(c) In item No. 4, calculate the education cess including secondary and higher education cess at the rate of three per cent.

(d) In item 16 please provide details of all savings and current accounts held at any time during the previous year. However, details of dormant account i.e. account which is not operational for more than 3 years is not mandatory. Please quote the IFS code of the bank. Further, enter full bank account number without any special character like ‘-’, ‘/’, bracket etc. The number should be as per Core Banking Solution (CBS) system of the Bank. Also indicate the account in which you would like to get your refund credited. This is mandatory even if your do not claim any refund. The amount of cash deposited during 09.11.2016 to 30.12.2016 in the bank accounts should also be filled. In case cash is deposited during 09.11.2016 to 30.12.2016 in any account other than the savings, current (viz. cash credit accounts, loan accounts etc.), then details of such account indicating the cash deposited in the said account during the said period should also be provided.

It may be noted that details of cash deposited are to be provided, if the aggregate amount of cash deposited during 09.11.2016 to 30.12.2016 is Rs.2 lakh or more.

15. VERIFICATION

(a) Please fill up the required information in the Verification. 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.

(b) 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.

16. TAX PAYMENTS

(A) In this table, fill the details of payment of advance income-tax and income-tax on self-assessment. The details of BSR Code of the bank branch (7 digits), date of deposit, challan serial no., and amount paid should be filled out from the acknowledgement counterfoil.

(B) (i) In this table, fill the details of tax deducted on the basis of TDS certificates (Form No.16A or Form 26QB) issued by the deductor(s).

(ii) Details of each certificate are to be filled separately in the rows. In case rows provided in these Schedules are not sufficient, please attach a table in same format.

(iii) It may please be noted that the TDS certificates are not to be annexed with the Return Form.

(iv) In this schedule where tax is deducted u/s 194-IA and details are filled as per Form 26QB, in column (2) in place of TAN of the Deductor mention PAN of the Buyer and in column (3) mention Name of Buyer being the Deductor.

(C) In this table, fill the details of tax collected at source on the basis of TCS certificates (Form No. 26) issued by the Collector. In case rows provided in these Schedules are not sufficient, please attach a table in same format.

Other related Post :-