ITR 7 Form – Process to File, Instructions and Verification

As per the Budget 2020 Income Tax Amendments, it is obligatory to file ITR for entities whose electricity bills are over ₹ 1 lakh and foreign expenses beyond ₹ 2 lakh. Besides that, if you are an employee with income above the threshold value, it’s your moral responsibility to pay taxes and file ITR. 

Any company or person falling under Section 139 (4A) or Section 139 (4B) or Section 139 (4C), or Section 139 (4D) has to file ITR 7 mandatorily. The form is primarily filed to claim the exemptions.

To know what ITR 7 holds and how to attempt the process of filing, let’s keep scrolling through the blog. 

What is ITR 7 Form?

ITR 7 is an income tax return form 7 filed by the people and companies under Section 139. 

All the charitable and religious trust under Section 139 (4A), the political party under Section 139 (4B), scientific research institutions under Section 139 (4C), and Khadi and Village industries or Universities or Colleges under Section 139 (4D), have to file the income tax return form 7. 

In clearer terms, the companies that generate the income from the properties for religious or charitable purposes have to file ITR 7 Form. Properties under the legal obligation in parts or completely, and those under the trusts fall in this category.

The taxpayers can file the ITR 7 forms by furnishing the returns via the digital signature mode, physical paperbacks forms, the submission of return verification through ITR Form V, or a bard coded form. 

Eligibility to File ITR-7 Form

You must meet the following criteria to be eligible to apply for ITR 7:-

• Every person or company receiving income from properties controlled by the trust or other legal obligations either partially or wholly for religious or charitable purposes can file ITR 7 under Section 139 (4A).
• Any political party whose net income, without giving effect to the rules of Section 139A, surpasses the threshold amount which is not chargeable to income tax needs to file ITR 7 u/s 139 (4B).
• Under Section 139 (4C), the following entities are entitled to file a return:-
  • News agency
  • Scientific research association
  • University or institution or fund or other educational institution or any hospital or other medical institution.
  • Institution or association defined in Section 10 (23A).
  • Institution or association specified in Section 10 (23B).

• Every college, university, or institution that isn’t supposed to provide a return of loss or income under any other regulations of this Section needs to file a return u/s 139 (4D).
• U/s 139 (4E), every business trust that isn’t entitled to provide a return of loss or an income under any provision of this section has to file ITR 7.
• Under Section 139 (4F), an investment fund specified in Section 115UB must file ITR. Furnishing the return of loss or an income isn’t mandatory under any other provision of this section.

ITR-7 Form Components

Form ITR 7 is technically formed of three major components as follows:-

• Part A
• Part B
• 26 Schedules 

These components are further explained in the section below. 

Structure of ITR 7 Form

Typically, ITR 7 form is divided into two parts and 26 schedules. You have to fill it up depending on the eligibility and category you fall in.

The details of parts and schedules of ITR 7 are as follows:-

Part A: It contains general information such as name, PAN, address, contact details, etc.

Part B: It contains the statement of income for a certain period and tax computation associated with income chargeable to tax. Part B also contains two different sections:

• Part B- T1: Statement of Income for a certain period
• Part B-TT1: Computation of tax liability on total income

Schedules (As Applicable)

Schedule I: Details of the amount set apart or accumulated within the meaning of Section 11 (2) or in the context of the third proviso to Section 10 (23).

Schedule J: Statement representing the investments and funds as the last day of the preceding year.

Schedule K: Statement of details related to Author(s) or Founder(s) or Manager(s) or Trust(s) etc. of the Institution or Trust.

Schedule LA: Details to be furnished by the political party

Schedule ET: For electoral trust

Schedule VC: Voluntary Contributions

Schedule AI: Total income derived during the previous year, excluding voluntary contributions

Schedule ER: Revenue expenditure incurred during the year and amount applied to stated objects of the institution/trust during the previous year.

Schedule EC: Amount applied to religious or charitable purposes in India or for the specified objects of the institution or trust during the previous year.

Schedule IE- 1: Expenditure & Income statement (applied to assesses claiming exemption under Sections 10(21), 10(22B), 10(23AAA), 10(23B), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(29A), 10(46), 10(47), and other clauses of Section 10 where income is unconditionally exempt. 

Schedule IE- 2: Expenditure & Income statement (applied to assesses claiming exemption under Sections 10(23A), 10(24)).

Schedule IE- 3: Expenditure & Income statement (applied to assesses claiming exemption undr Sections 10(23C)(iiiab) or 10(23C)(iiiac)).

Schedule IE- 4: Expenditure & Income statement (applied to assesses claiming exemption under Sections 10(23C)(iiiad) or 10(23C)(iiiae))

Schedule HP: Particulars of income from house property.

Schedule CG: Capital gains

Schedule OS: Income from other sources

Schedule OA: General information related to business/profession

Schedule BP: Computation of income from profession or business

Schedule CYLA: Information of income after set-off of current years losses

Schedule PTI: Pass-through income particulars from an investment fund or business trust as Section 115UA, 115UB

Schedule SI: Income chargeable to tax at special rates

Schedule 115 TD: Accreted income under Section 115TD

Schedule FSI: Particulars of income from outside India and tax relief

Schedule TR: Summary of tax relief reclaimed for taxes paid outside India.

Schedule FA: Information on foreign assets and income from any source outside India

Schedule SH: Shareholding of unlisted company.

Points to Ponder while Filing an ITR 7 Form

The Income Tax Department has set certain standards that must be followed while filing ITR-7. They are as follows:-

• All the particulars must be filed precisely as defined; otherwise, the return will be invalid or considered defective.
• Round off the figures associated with tax and incomes to the nearest multiples of ten rupees.
• Round off other figures to the nearest rupee. 
• Write ‘NIL’ for figures having zero or nil values.
• Represent the loss figures or negative figures as “-” before such a number unless provided otherwise.
• If some items don’t apply to the assessee, mention “NA” against the same. 

The Process to File ITR 7 Form

You can file the ITR 7 Form with the Income Tax Department in the following ways:-

• Either filing the returns in an electronic format using the Digital Signature Certificate (DSC), or
• By furnishing the data in return and then submitting the verification of the ITR 7 in the ITR V Return Form. 

Once you have filed the return, you need to print the copies of the ITR V Form. Send the copy of the ITR V, which you must duly sign via the ordinary post, to the following address:–

Bag No.1, 

Electronic City Office, 

Bengaluru – 560100 ( Karnataka)

You can retain the other copy of the return for your record. 

Related ITR Form

Instructions for filling out the ITR-7 form Parts and Schedules

According to the Income Tax Department, the assesses must follow the instructions and steps specified below while filing the ITR 7 Form. 

• Start with filling up information in Part A
• Fill up the section – Part B
• Go through the Schedules and fill them up (as applicable)
• Then, fill out the Verification document. 

Provide all the information required in the verification document. Cross out the ones that don’t apply to you. Sign the verification document digitally before furnishing the final return. 

It is mandatory for the person filing the return to mention their designation in the entity on behalf of whom they are filing. 

Verification of Form ITR-7

The political parties are obligated to verify the return through the secretary or CEO’s digital signature (DSC). However, people other than politicians get the following choices for verification:-

• Authentication through the EVC (Electronic Verification Code) mode
• Through a DSC (digital signature certificate)
• ITR-V acknowledgement must be duly signed and posted to the CPC office.

Please note that if somebody makes a false declaration in the return or the accompanying schedules, then the person shall be liable to be prosecuted under Section 277 of the Income Tax, 1961. Moreover, the person shall be punishable on conviction under Section 277 with stringent imprisonment and hefty penalties.

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Frequently Asked Questions (FAQs)