Instructions to Form ITR-7 (A.Y. 2020-21)

Instructions for filling out Form ITR-7

These instructions are guidelines for filling the particulars in Income-tax Return Form-7 for the Assessment Year 2020-21 relating to the Financial Year 2019-20. 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 2020-21only i.e., it relates to income earned in Financial Year2019-20.

2. Who is eligible to use this Return Form?

This ReturnForm 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).

The category of persons whose income is unconditionally exempt under various clauses of section 10, and who are not mandatorily required to furnish their return of income under the provisions of section 139, may use this form for filing return. An indicative list of such persons is given below:-

Sl.no Category of persons Exempt under section
1 Local authority Section 10(20)
2 Regimental Fund or Non-public Fund established by the Armed forces of the Union Section 10(23AA)
3 Fund, by whatever name called, set up by the Life lnsurance Corporation (LIC) of India on or after 1stAugust, 1996, or by any other insurer Section 10(23AAB)
4 Authority (whether known as the Khadi and Village Industries Board or by any other name) Section 10(23BB)
5 Body or Authority Section 10(23BBA)
6 SAARC Fund for Regional Projects set up by Colombo Declaration Section 10(23BBC)
7 lnsurance Regulatory and Development Authority (IRDA) Section 10(23BBE)
8 Central Electricity Regulatory Commission Section 10(23BBG)
9 Prasar Bharati Section 10(23BBH)
10 Prime Minister’s National Relief Fund Section 10(23C)(i)
11 Prime Minister’s Fund (Promotion of Folk Art) Section 10(23C)(ii)
12 Prime Minister’s Aid to Students Fund Section 10(23C)(iii)
13 National Foundation for Communal Harmony Section 10(23C)(iiia)
14 Swachh Bharat Kosh Section 10(23C)(iiiaa)
15 Clean Ganga Fund Section 10(23C)(iiiaaa)
16 Provident fund to which the Provident Funds Act, 1925 applies Section 10(25)(i)
17 Recognized Provident Fund Section 10(25)(ii)
18 Approved Superannuation Funds Section 10(25)(iii)
19 Approved Gratuity Fund Section 10(25)(iv)
20

 

Other funds referred to in sub-clause (v) of section 10(25)

10(25)

Section 10(25)(v)

 

21 Employees’ State Insurance Fund Section 10(25A)
22 Agricultural Produce Marketing Committee Section 10(26AAB)
23 Corporation, body, institution or association established for promoting interests of members of Scheduled Castes or Scheduled Tribes or backward classes Section 10(26B)
24 Corporation established for promoting interests of members of a minority community Section 10(26BB)
25 Corporation established for welfare and economic upliftment of ex-servicemen Section 10(26BBB)
26 New Pension System (NPS) Trust Section 10(44)

3. Manner of filing this Return Form

This Return Form can be filed with the Income-tax Department electronically on the e-filingweb portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified in any one of the following manner –

(i) digitally signing the verification part, or

(ii) authenticating by way of electronic verification code (EVC), or

(iii) Aadhaar OTP

(iv) by sending duly signed paper Form ITR-V – Income Tax Return Verification

Form by post to CPC at the following address –

Centralized Processing Centre,

Income Tax Department,

Bengaluru— 560500,

Karnataka”.

The Form ITR-V-Income Tax Return Verification Form should reach within

120 days from the date of e-filingthe return.

The confirmation of the receipt of ITR-V at Centralized Processing Centre will be sent to the assessee on e-mail ID registered in the e-Filing account.

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

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),12A(1)(b), 92E he shall file such report electronically on or before the date of filing the return of income.

4. Filling out the ITR-V -Income Tax Return Verification Form

Where the Return Form is furnished in the manner mentioned at 3(iv), the assessee should print Form ITR -V-Income Tax Return Verification Form. ITR-V-Income Tax Return Verification Form duly signed by the assessee, has to be sent by ordinary post or speed post only to Centralized Processing Centre, Income Tax Department, Bengaluru–560500 (Karnataka).

General guidance

In part A General, please furnish the information relating to identity of assessee, details of any project or institution run by the assessee during the year, section under which return is filed and section under which exemption has been claimed etc.

Certain schedules to this return form are mandatorily required to be filled up by assessees which are claiming exemption under specific provisions, as per the following list:-

Exemption claimed under section Schedule required
to be filled up
Political party claiming exemption u/s 13A Schedule LA
Electoral Trust claiming exemption u/s 1 3B Schedule ET
Trust/institution claiming exemption u/s 11 and/or 1 0(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C) (via) Schedule AI
Assessee claiming exemption under any of the clauses of section   10(21),   10(22B),    10(23AAA),   10(23B),   10(23FB), 10(23D), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(29A), 10(46), 10(47) and persons whose income is unconditionally exempt under various clauses of section 10 (refer the list above at S. No. 2) Schedule IE 1
Assessee claiming exemption under sections 10(23A), 10(24) Schedule IE 2
Assessee claiming exemption under sections 10(23C)(iiiab) or 10(23C)(iiiac) Schedule IE 3
Assessee claiming exemption under sections 10(23C)(iiiad) or 10(23C)(iiiae) Schedule IE 4

This ITR form is applicable for assessee to claim exemption u/s 11, 10(23C), clauses of section 10, 13A or 13B. If exemption is not applicable to the assessee, relevant ITR form as per rule 12 may be used.

Where TDS has been claimed ensure that corresponding receipts are disclosed in the applicable schedules. For example schedule AI has to be filled by person registered under section 12A/12AA or approved under section 10(23C)(iv to via). Schedule IE1 to IE4 has to be filled by the person claiming exemption under clauses of section 10. Heads of income is required to be filled only if assessee has taxable income. If assessee has claimed exempt income u/s 10 in schedule Part B-TI and it has been allowed, then the receipts disclosed in relevant schedule IE will be treated as receipts for the purpose of Rule 37BA.

In case exemption u/s 10 is not allowed due to non-compliance of the provisions of the Act, then the receipts mentioned in Schedule IE will be considered as income in Schedule OS and will be taxed.

Where an institution is registered u/s 12A/12AA or approved u/s 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C)(via) no exemption under other clauses of section 10 is allowable except for section 10(1).

Audit report in form 10B/10BB has to be e-filed atleast one month prior to due date for filing of return u/s 139(1).

Download Full Text of Instructions for filling out Form ITR-7 for A.Y. 2020-21

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