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ITR-7

The majority of entities that file income tax returns would be using ITR-1 to ITR-6. However, the ITR-7 would be available for certain special types of entities, e.g., the entities enjoying tax-exempt status. In this article, we will discuss the ITR-7 in brief.

Applicability Of ITR-7

The ITR-7 applies to the assessees filing their return of income under sections 139(4A), 139(4B), 139(4C) and 139(4D). The assessees covered under these sections are as follows:

  • Charitable or Religious trust whose income exceeds the maximum amount chargeable to tax [Section 139(4A)]
  • Political parties [Section 139(4B)]
  • Approved institutions under section 10 claiming exemption under the respective sub-sections [Section 139(4C)]
  • A university, college or other institution covered under section 35(1)(ii) and 35(1)(iii) who is not required to file a return under any other section of the Income-tax Act [Section 139(4D)]

Contents Of ITR-7

The various sections of this return are explained as under:

  1. Part A-GEN: All the general information relating to the assessee will be entered here which includes details of various projects/institutions, registration under multiple laws, holding of unlisted shares, members of the AOP (if applicable), 80G registration status (if applicable), etc.
  2. Schedule I: The details of amounts accumulated or set apart in accordance with section 11(2) or section 10(23C) will have to be entered here for all past financial years up to F.Y. 2014-15.
  3. Schedule J: The entities registered/approved under section 12A, 12AA, 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via) or 10(21) are required to provide information of their funds and investments as on the last day of the previous year (FY 2019-20) in this schedule.
  4. Schedule K: The name, address, PAN and Aadhar number (enrolment number if Aadhar not available) of the Authors, Founders, Settlors, Trustees, Managers, their relatives, etc. of the respective trust or institution will have to be provided in this schedule.
  5. Schedule LA: The details in this schedule are to be filled only if the assessee is a political party.
  6. Schedule ET: The details in this schedule are to be filled only if the assessee is an electoral trust.
  7. Schedule VC: All the assessees filing ITR-7 will have to provide details regarding voluntary contributions received by them in this schedule.
  8. Schedule AI: All assessees claiming exemption under sections 11 and 12 or 10(23C)(iv), 10(23C)(v), 10(23C)(vi) or 10(23C)(via) are required to provide details of all their income other than voluntary contributions.
  9. Schedule ER: The revenue expenditure incurred along with particulars regarding the amount spent towards the objects of the trust/institution will have to be provided in this schedule by all assessees claiming exemption under sections 11 and 12 or 10(23C)(iv), 10(23C)(v), 10(23C)(vi) or 10(23C)(via).
  10. Schedule EC: The capital expenditure incurred along with particulars regarding the amount spent towards the objects of the trust/institution will have to be provided in this schedule by all assessees claiming exemption under sections 11 and 12 or 10(23C)(iv), 10(23C)(v), 10(23C)(vi) or 10(23C)(via).
  11. Schedule IE-1: The assessees claiming exemption under section 10(21), 10(22B), 10(23AAA), 10(23B), 10(23D), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(23FB), 10(29A), 10(46), 10(47) or any such clause where the income is unconditionally exempt have to enter a brief income and expenditure statement as per this schedule.
  12. Schedule IE-2: The assessees claiming exemption under section 10(23A) and 10(24) have to enter a brief income and expenditure statement as per this schedule.
  13. Schedule IE-3: The assessees claiming exemption under section 10(23C)(iiiab) and 10(23C)(iiiac) have to enter a brief income and expenditure statement as per this schedule.
  14. Schedule IE-4: The assessees claiming exemption under section 10(23C)(iiiad) and 10(23C)(iiiae) have to enter a brief income and expenditure statement as per this schedule.
  15. Schedule HP: The income from house property will be calculated in this schedule.
  16. Schedule CG: This schedule is meant for the computation of capital gain or loss.
  17. Schedule OS: The income from other sources is calculated in this schedule. Further, the amount of income accruing at each stage of the advance tax instalment has to be entered here.
  18. Schedule OA: Any other information relevant to the computation of income is entered in this schedule – like nature of business and the appropriate business code, number of branches, method of accounting, method of valuation of closing stock, etc.
  19. Schedule BP: This schedule calculates the income from business or profession of the entity.
  20. Schedule CYLA: The income under each head of income after set-off of current year losses will be indicated in this schedule.
  21. Schedule PTI: In case of any income from a business trust or investment trust as per section 115UA or section 115UB, the details of Pass-Through Income will be entered in this schedule.
  22. Schedule SI: This schedule will show the details of income earned by the assessee that is chargeable to tax at special rates.
  23. Schedule 115TD: The details of accredited income as per section 115TD will be entered in this schedule.
  24. Schedule FSI: The particulars of income earned from outside India along with the tax relief, if any, will be entered in this schedule.
  25. Schedule TR: This schedule requires a few additional details relating to the relief claimed based on the taxes paid outside India.
  26. Schedule FA: This schedule will require the taxpayer to give information relating to various foreign assets/foreign incomes such as Foreign Depository accounts, Foreign Custodial accounts, Interests in foreign entities (whether by way of equity, debt or any other means), Foreign Insurance/Annuity contracts, immovable property, other capital assets, signing authority in foreign bank accounts, foreign trusts, miscellaneous foreign income not already included in earlier schedules, etc.
  27. Schedule SH: In case the assessee is an unlisted company, the details of its shareholding will have to be provided in this schedule.
  28. Schedule Part B-TI and Part B-TTI: These schedules prepare the final computation of income and tax payable thereon after extracting the relevant amounts from the rest of the schedules.
  29. Tax Payments: This table asks for information relating to the credit of taxes already paid like self-assessment tax, advance tax, TDS and TCS.
  30. Schedule Verification: This is the final page of the return that establishes the identity of the signatory of the return.