Easy Guide to Filing ITR 7 for this Financial Year

Form ITR 7 is a tax form ideal for companies who are required to furnish income tax return under section 139(4A), section 139(4B), section 139(4C), section 139(4D), section 139(4E) or section 139(4F) of the Income Tax Act. When filing ITR with form-7, one does not need to attach any document (including TDS certificate).

Structure of the ITR-7 Form:

1) Part A: General information

From Assessment Year (AY) 2023-24, a taxpayer shall provide information on the details of registration or approval.

2) Part-B: Outline of the total income and tax computation w.r.t. income chargeable to tax.

• Part B-TI: Computation of total income
• Part B-TTI: Computation of tax liability on total income

3) 23 Schedules that cover details of amounts accumulated in the previous year, statement showing the investment of all funds, particulars of the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc., of the Trust or Institution, details of Voluntary Contributions received, amount applied to charitable or religious purposes in India, and Computation of income under several head, among others.

Tax payments:

• Details of payments of Advance Tax and Self-Assessment Tax
• Details of Tax Deducted at Source (TDS) on Income (As per Form 16A/16B/16C).
• Details of Tax Collected at Source (TCS)

How to file ITR-7 form?

ITR 7 form can be filed with the Income-tax Department in one of the following ways: -

1. By furnishing the return electronically under a digital signature;
2. By filling online form electronically under electronic verification code;
3. By transmitting the data in the return electronically and submitting the verification of the return in Return Form ITR-V;

Exceptions:

• A political party shall compulsorily furnish the return by furnishing the return electronically under a digital signature.
• 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.

All taxpayers are advised to match the taxes deducted/collected/paid by them with their Tax Credit Statement Form 26AS.

Eligibility for filing return under ITR-7 Form:

ITR 7 is suitable for companies who are required to furnish return under section 139(4A), section 139(4B), section 139(4C), section 139(4D), section 139(4E) or section 139(4F) of the Income Tax Act. Let us understand them:

1. Return under section 139(4A): To be filed by every person who receives income from property held under trust or other legal obligation wholly for charitable or religious purposes.
2. Return under section 139(4B): 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.
3. Return under section 139(4C): To be filed by scientific research association, news agency, association or institution referred to in section 10(23A), institution referred to in section 10(23B), and fund or institution or university or other educational institution or any hospital or other medical institution.
4. Return under section 139(4D): To be filed by every university, college or institution not required to furnish return of income or loss under any other provision of this section.
5. Return under section 139(4E): To be filed by every business trust that is not required to furnish return of income under any other provisions of this section.
6. Return under section 139(4F): To be filed by any investment fund referred to in section 115UB.

Major Changes made in ITR-7 for AY 2024-25

Information to be provided when filing the Income Tax Return, the following information is required:

• Capital gains are now required to be computed for a separate period before and after 23.07.2024, which follows the date of application of the provisions of the Finance Act, 2024.

• Capital loss arising under share buyback transactions shall be allowed only when the dividend income thereon is disclosed under 'Income from Other Sources'. This shall be effective from 01.10.2024.
• For presenting in the taxation return, enhanced details related to deduction claimed under section 24(b), interest on borrowed capital have been included.
• In Schedule-TDS, taxpayers are now required to indicate the appropriate TDS section codes. This change aims to enhance the accuracy and facilitate the cross-verification of tax deducted at source.

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