Persons including companies that are required to furnish Income-tax return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) shall furnish the return of income under the Income-tax Act, 1961 in Form ITR-7.

Section 139(4A)

If the total income in respect of the following assessees exceeds the maximum amount which is not chargeable to tax, the return of income shall be furnished in form ITR- 7 under section 139(4A) of Income Tax Act, 1961 by:

– Every person who receives income from property held under trust or other legal obligation wholly for charitable or religious purpose or in part only for such purposes.

– Trust or institution, created wholly or partly for charitable or religious purpose, that receives income by way of voluntary contributions. OR

Section 139(4B)

If the total income of Chief Executive Officers of political party in case total income in respect of which the political party is assessable exceeds the maximum amount which is not chargeable to tax without giving effect to the provisions of section 13A, the return of income shall be furnished in form ITR- 7 under section 139(4B) of Income Tax Act, 1961. OR

Section 139(4C)

If the total income in respect of the following exceeds the maximum amount which is not chargeable to tax without giving effect to the provisions of section 10, the return of income shall be furnished in form ITR- 7 under section 139(4C) of Income Tax Act, 1961:

  • Research Associations
  • News agency
  • Association or institution referred to in section 10(23A)
  • Persons referred to in section 10(23AAA)
  • Institutions referred to in section 10(23B)
  • Fund or institution or university or other educational or any hospital or other medical institution
  • Mutual funds
  • Securitisation trust
  • Investors protection fund
  • Core settlement guarantee
  • Venture capital company or venture capital fund
  • Trade unions
  • Board or authority referred to in section 10(29A)
  • Body or authority or board or trust or commission (by whatever name called) referred to in section 10(46)
  • Infrastructure debt fund

Section 139(4D)

Every university, college or other institution, which is not required to file return under any other provision of section 139, shall be required to furnish income tax return in form ITR- 7 under section 139(4D) of Income Tax Act, 1961.

Section 139(4E)

Every business trust, which is not required to file return under any other provision of section 139, shall be required to furnish income tax return in form ITR- 7 under section 139(4E) of Income Tax Act, 1961.

Section 139(4F)

Every investment fund referred to in section 115 UB, which is not required to file return under any other provision of section 139, shall be required to furnish income tax return in form ITR- 7 under section 139(4F) of Income Tax Act, 1961.

THE STRUCTURE OF THE ITR 7 FORM

This return form is divided into the following 3 parts. Part A is for the general details while Part B: With regard to the income chargeable for tax evaluation, the complete statement of total and tax computation. Scope of income to be included in Part –B of the ITR-7 has Been enhanced. Institutions approved u/s10(23C)(iv),10(23C) (v),10(23C) (vi) and 10(23C) (via) also has to report in the Part-B of ITR7.

Part A-GEN mainly seeks general information requiring furnishing of personal information like name and address, PAN number, date of creation, filing status, other details and audit details. 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. There are the following 25 schedules:

  • 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.
  • Schedule-J: Statement showing the funds and investments as on the last day of the previous year.
  • Schedule-K: Statement of particulars regarding the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc., of the Trust or Institution.
  • Schedule-LA: Details in case of a political party.
  • Schedule-ET: Details in case of an Electoral Trust
  • 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
  • Schedule ER: Amount applied to charitable or religious purposes in India during the previous year – Revenue Account
  • 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)]
  • Schedule-HP: Computation of income under the head Income from House Property.
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-VC: Details of Voluntary Contributions received
  • Schedule-OA: General information about business and profession.
  • Schedule-BP: Computation of income under the head ‘profit and gains from business or profession
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
  • Schedule-MATC: Computation of tax credit under section 115JAA
  • Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule-PTI: Statement of income from Business Trust or Investment Fund as per section 115UA, 115UB.
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule 115TD: Accreted income under section 115TD
  • Schedule FSI: Details of income accruing or arising outside India
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets and Income

VERIFICATION OF ITR 7

♠ In case of a political party, return of income can be verified by the chief executive officer of such party (whether known as secretary or any other designation) , Digital Signature is mandatory in case of Political Parties

♠ In any other case, return of income can be verified by persons competent to do so as per section 140 of the Income- tax Act. the following options are also available for verification:

  • e-verification through Aadhar OTP
  • e-verification through net banking if the bank account is linked with mobile number
  • e-verification through email OTP or mobile OTP if assessee has income below Rs. 5 Lacs
  • physical verification by sending the signed ITR-V through post at CPC, Bengaluru

♠ The permanent account number of the above persons is required to be mentioned in verification.

♠ You are supposed to fill up the required information in the verification. In case the return is furnished electronically under digital signature, please fill up the required information in the Verification You can strike out whatever is not applicable.

♠ Ensure that the verification has been signed prior to furnishing the return. Also, write the designation of the person signing the return.

♠ You must 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.

LATEST CHANGES IN ITR 7 FORM FOR AY 2018-19

There are number of changes made in the ITR7 for making the smooth assessment procedure online hence seeking more and more information from the taxpayers to facilitate e-assessment.

Late Fee for late filing of ITR- A new field has been added where the late filers need to provide the details of late filing fees paid.

Capital gains as a result of transfer of unquoted shares- A new filed has been added for the taxpayers to provide information on unquoted shares in accordance with the amendment in the section 50CA of the Finance Act, 2017.

Reporting gifts- A field has been added to report the amount taxable as gift

Credit of refund to foreign bank account– A field has been added where an NRI taxpayer can provide the details of a foreign bank account in which he wants the credit of the tax refund he wants to claim.

Reporting disallowance of expenses –A new field has been added to report disallowance of expenses in case of TDS default.

Claiming credit of TDS deducted in the name of another person- A new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.

Claiming relief under DTAA– The form now asks the taxpayer claiming relief as per DTAA to report more details like rate as per treaty, rate as per I-T Act and applicable rate etc

Claiming exemption on capital gains- The taxpayers now need to provide more details in the form if they are claiming capital gains exemption.

Reporting remission or cessation of trading liability- New forms require separate reporting of remission or cessation of trading liability in case of income from other sources.

Reporting GST payments and refunds New columns have been introduced in the ITR forms to report the details of GST paid and refunded.

Reporting cash donations –Political parties now need to report if they have received any cash donation in excess of Rs 2,000 in the form.

Change in applicability -A trust will now be required to provide the details of fresh registration in case its stated objects have changed.

Disclosure of ‘unexplained income’ and ‘dividend income’ in excess of Rs 10 lakh Under ‘schedule OS, Computation of income under the head Income from other sources.’ you are required to declare unexplained credit or investment and dividend received from domestic companies exceeding Rs 10 lakh.

Form 26AS– Match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement.

AUDIT REPORTS FOR ITR 7 A.Y 2018-19

In case an assessee is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-

IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC, he shall file such report electronically on or before the date of filing the return of income.

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. It is 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

  • Section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via)
  • Section 10AA
  • Section 12A(1)(b)
  • Section 44AB
  • Section 44DA
  • Section 50B
  • Section 80-IA
  • Section 80-IB
  • Section 80-IC
  • Section 80-ID
  • Section 80JJAA
  • Section 80LA
  • Section 92E
  • Section 115JB

FORM NO. 10BAudit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions

Form 10BB-Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub- clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C).

FORMS FOR ITR 7 A.Y 2018-19

In exercise of the powers conferred by section 11 read with section 295 of the Income-tax Act, 1961 (43 of 1961) dated 14th January 2016 , the necessary online forms have been notified In case of accumulation, Exercise of option etc under section 11

Rule 17. (1) The option to be exercised in accordance with the provisions of the Explanation to sub-section (1) of section 11 in respect of income of any previous year relevant to the assessment year beginning on or after the 1st day of April, 2016 shall be in Form No. 9A and shall be furnished before the expiry of the time allowed under sub-section (1) of section 139 for furnishing the return of income of the relevant assessment year.

(2) The statement to be furnished to the Assessing Officer or the prescribed authority under sub-section (2) of section 11 or under the said provision as applicable under clause (21) of section 10 shall be in Form No. 10 and shall be furnished before the expiry of the time allowed under sub-section (1) of section 139, for furnishing the return of income.

(3) The option in Form No. 9A referred to in sub-rule (1) and the statement in Form No.10 referred to in sub-rule (2) shall be furnished electronically either under digital signature or electronic verification code.

(4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—

i. Specify the procedure for filing of Forms referred to in sub-rule (3);

ii Specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule(3), for purpose of verification of the person furnishing the said Forms; and

iii Be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to Forms so furnished. ]

——————————–

FORM NO. 9A

[See rule 17(1)]

Application for exercise of option under clause (2) of the Explanation to sub-section(1) of section 11 of the Income – tax Act, 1961.

To

The Assessing Officer

Xxxx

I, ……………on behalf of [name of the trust/institution/association]…………………….Permanent Account Number (PAN)………………………………..do hereby wish to exercise the option referred to in clause (2) of the Explanation to sub-section (1) of section 11 of the Income-tax Act, 1961 for an amount of Rs…………………..( detailed in A below) to be deemed to be the income applied for charitable or religious purposes during the previous year 2017- 2018 for the reasons mentioned in B below.

A. The details of income in this regard are:

(i) Amount of income derived from property held under trust / held under trust in part, during the above mentioned previous year: Rs………………. ;

(ii) Amount of income [out of (i)] actually applied to charitable or religious purposes in India: Rs …………………….;

(iii) Amount of income referred to in (ii) that falls short of 85% of the income referred to in (i) : Rs……………..;

(iv) The amount of income in respect of which the option is being exercised: Rs………………

B. The reasons for the shortfall in application of income are as under:—

(a) Whether the income was not received during the previous year? ……… Yes/No.

If Yes, the amount of income that was not received:……………;

(b) any other reason ? ………Yes/No

If yes, then specify the reason and the corresponding amount of income:

Sr. No. Reason for shortfall Amount of Income

Date:

Signature …………………………….

Designation ………………………….

Address ………………………………

Note:

  1. This option Form should be signed by a trustee/principal officer.
  2. Delete the inappropriate words

——————————–

FORM NO.10

[ See rule 17]

Notice to the Assessing Officer/Prescribed Authority under section 11(2) of the Income- tax Act, 1961

To

The Assessing Officer/Prescribed Authority,

YYY

I,______________________________________ on behalf of________________ [name of the trust/institution/association] hereby bring to your notice that it has been decided by a resolution passed by the trustees/governing body, by whatever name called, on________________(copy enclosed) that, out of the income of the trust/institution/association for the previous year(s), relevant to the assessment year_______and subsequent previous year(s), an amount of Rs._____________per cent of the income of the trust/institution/association, such sum as is available at the end of the previous year(s) should be accumulated or set apart till the previous year(s) ending_____________in order to enable the trustees/governing body by whatever name called, to accumulate sufficient funds for carrying out the following purposes of the trust/association/institution :__

2. Before expiry of six months commencing from the end of each previous year, the amount so accumulated or set apart has been/will be invested or deposited in any one or more of the forms or modes specified in sub-section (5) of section 11.

3. Copies of the annual accounts of the trust/institution/association along with details of investment (including deposits) and utilisation, if any, of the money so accumulated or set apart will be furnished to you before the expiry of six months commencing from the end of each relevant previous year.

4. It is requested that in view of our complying with the conditions laid down in section 11(2) of the income-tax Act, 1961, the benefit of that section may be given in the assessments of the trust exempting the income in respect of the trust/institution/association in respect of the incomes accumulated or set apart as mentioned above.

Date:

Signature

Designation

Address

Notes:

  1. This notice should be signed by a trustee/principal officer.
  2. Delete the inappropriate words.

Author Bio

Qualification: CA in Practice
Company: N/A
Location: Meerut, Uttar Pradesh, IN
Member Since: 17 Jun 2018 | Total Posts: 119
Author was Member of ICAI- Regional Research Committee 2013-14 and ICAI- Committee For Direct Taxes 2011-12 and can be reached at email [email protected] or on phone Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2 having office at 1 1 5, Chappel Street, Meerut Cantt, UP, INDIA) View Full Profile

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