What Is The ITR 7 Form?
The ITR-7 form is mandated for entities that derive income from properties meant for charitable or religious purposes. These may be held partially or entirely under trusts or legal obligations.
Eligibility Criteria For ITR-7 Return Filing
The following entities are required for ITR-7 return fling u/s:
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139(4A)
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Receiving income from property held under trust or other legal obligation, wholly or partially for charitable or religious purposes.
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Income from voluntary contributions.
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139(4B)
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Political parties whose income exceeds the maximum amount not chargeable to tax.
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139(4C)
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Scientific Research Associations
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Hospitals
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Funds
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Educational Institutions or Universities
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Associations or Institutions mentioned in Section 10(23A)
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News Agencies
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Institutions referred to in Section 10(23B)
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139(4D)
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Every college, university, or association is not required to furnish details of the return of income or loss under any other provision of this section.
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139(4E)
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Business trusts return filing income.
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139(4F)
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Investment funds referred to in section 115UB.
If you need clarification regarding your eligibility, get in touch with our experts at https://www.karrtax.in/.
Who Is Not Required To File ITR-7 Return
Entities who are not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C), or Section 139 (4D).
Last Date for Filing ITR-7 Form
The deadline for submitting the ITR-7 Form varies based on whether the taxpayer's accounts require an audit.
It's advisable for taxpayers to stay informed about any updates or changes in the filing deadlines to avoid any potential penalties or consequences.
Structure of ITR-7 Form
Part-A: General Information about the trust or institution
Part-B: Outline of Total Income and Tax Computation
Procedure To File ITR 7 Returns
The sequence below should be followed properly to file an ITR-7 return.
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Part A
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Part B
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Schedules
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Verification
Now, there are two different ways to furnish the information as specified by the Income Tax Department of India.
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ITR-7 can be filed electronically using a digital signature certificate for authentication or through various other modes such as aadhar OTP, bank EVC etc.
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After electronically transmitting the return, the taxpayer must submit the return verification in the ITR-V Return Form & print its copies.
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Then, one copy of the signed ITR V Form should be sent via speed post to the following address: Bag No.1, Electronic City Office, Bengaluru - 560100 (Karnataka)
The assessee should retain the other copy of the signed ITR V Form for their records.
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E-filing Audit Reports
If the taxpayer is subject to audit under section 11 or 44AB or any other laws such as Trust Act/Societies Act, details of the audit reports and the date of furnishing should be submitted to the income tax department under "Audit Information."
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No Annexures Required
No additional documents are required to be attached while filing the ITR 7 Form. (including TDS certificate)
Pro Tip: It is very important to cross-verify taxes deducted or collected according to your Tax Credit Statement (Form 26AS)
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Verification of Form ITR-7
Step-by-step procedure to fill out the verification document.
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Complete all required information.
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Carefully strike out any sections or details that do not apply to your specific filing.
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Ensure that the verification document is signed before submitting the return.
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Choose the appropriate designation or capacity of the return signing person.
For political parties, the CEO or secretary is obligated to verify the return using a Digital Signature Certificate (DSC). Other individuals have the following verification options:
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Digital Signature Certificate (DSC)
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Electronic Verification Code (EVC) Mode
Physical Verification (ITR-V)
How Can Karr Tax Help You With ITR-7 Return Filing?
●Specialization in ITR-7 Filings
Trusts, political parties, institutions, and colleges present unique challenges regarding income sources, exemptions, and reporting structures. That’s why our experts specialize in handling ITR-7 return filings and ensure a thorough understanding of the complexities associated with different form categories.
●Dedicated Audit Support
The platform offers dedicated support for the audit process, a crucial aspect for entities required to file ITR-7. This includes collaboration with experienced auditors to ensure compliance with audit provisions under section 11 or 44AB of the Income Tax Act.
●User-Friendly Interface
Our platform is designed to provide a seamless experience, guiding users through each step of the filing process. This makes it accessible even for those without an in-depth understanding of tax laws.
●Regular Updates on Tax Regulations
Karr Tax keeps clients informed about the latest changes in tax regulations and ensures that their filing processes are aligned with the most up-to-date guidelines. We frequently post blog posts regarding law changes, so keep an eye on https://www.karrtax.in/articles.
●Secure Data Handling
Security is our top-most priority. Our platform employs robust security measures to safeguard sensitive financial information, providing clients with the assurance that their data is handled with the utmost confidentiality.
●Prompt Response to Notices
In case of any notices or inquiries from tax authorities, Karr Tax ensures prompt responses. The platform assists clients in understanding and addressing any issues raised by tax authorities, facilitating a smoother resolution process.
FAQs (Frequently Asked Questions)
1. What is ITR-7?
ITR-7 is the Income Tax Return form specifically designed for persons or entities such as Trusts/Societies/Educational Institutions/schools/Colleges/Political Parties, including companies falling under Section 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), and 139(4F) of the Income Tax Act, 1961.
2. How to calculate income for filing ITR-7?
The income for ITR-7 is computed by aggregating income from all sources, including
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Business or profession,
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Capital gains, and
Deductions under various sections are then applied to determine the taxable income.
3. Is it required to furnish information regarding any project or institution run by the assessee?
Yes, filling in all the required information about the project or institutions run by the assessee is necessary. This includes:
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Name,
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Nature of the activity,
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Approval of the school, college, university, hospital, or research institution,
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Details of registration/ provisional registration.
4. What is the penalty for not filing ITR-7 on time?
If ITR-7 is not filed within the due date, a penalty under section 234F may be applicable. The penalty amount varies based on the delay in filing.
5. Can ITR-7 be filed in response to a notice or order?
Yes, ITR-7 can be filed in response to a notice or order issued by the income tax authorities. When filing in response to a notice or order, taxpayers should provide specific details. This includes entering the Document Identification Number (DIN) or Unique number and the date of the relevant statutory notice.
6. Can Karr Tax help me determine my eligibility for ITR-7 return filing?
Yes, our tax experts are here to help you round the clock with all your queries. Write us here: https://www.karrtax.in/ and we will get back to you as soon as possible.
7.How Form 26AS is related to ITR-7?
Form 26AS is a comprehensive tax credit statement that offers a consolidated view of the taxes deducted at source (TDS), taxes collected at source (TCS), and advance tax payments made on behalf of the taxpayer during a specific financial year. It ensures that the information reported in ITR-7 aligns with the data recorded by tax authorities