Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Invest

Insurance and Investment in one plan.

Kotak e-Term

Protect your family's financial future.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals.

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan.

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family.

Kotak Assured Pension

A plan that offers immediate or deferred stream of income

Kotak Lifetime Income Plan

Retirement years are the golden years of life.

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

A Comprehensive Guide to Understand the ITR 7 Form

The ITR 7 is a tax form for entities falling under specific sections of the Income Tax Act, providing detailed instructions on income computation, deductions, and other critical aspects.

  • 4,489 Views | Updated on: Mar 20, 2024

The ITR-7 form plays a pivotal role, specifically designed for entities such as trusts, associations of persons (AOP), bodies of individuals (BOI), and other entities that are not eligible for presumptive taxation.

One such form is ITR 7 for taxpayers falling under specific categories, such as trusts, associations, and charitable institutions; the ITR 7 form is the designated document for filing returns.

What is ITR 7?

ITR 7 is an income tax return form prescribed by India’s Income Tax Department. It is specifically designed for individuals and entities that are required to file their tax returns under section 139(4A), section 139(4B), section 139(4C), or section 139(4D) of the Income Tax Act, 1961. These sections pertain to certain categories of taxpayers, including trusts, political parties, charitable or religious institutions, research associations, and news agencies.

Eligibility to File ITR 7 Form

ITR 7 caters to the diverse needs of taxpayers, but you must understand if you are eligible for the same. The eligibility criteria for filing the ITR 7 form and its key information are as follows:

  • Every person who receives income from assets held under a trust or other legal obligation primarily or exclusively utilized for charitable or religious purposes must submit a return under section 139(4A).
  • A political party must file a return under section 139(4B) if its total revenue exceeds the amount that is exempt from income taxation after applying section 139A’s requirements.
  • Every scientific research association, news organization, association, or institution mentioned in section 10(23A), institution mentioned in section 10(23B), fund or institution, university or other educational institution, or any hospital must file a return under section 139(4C).
  • Every university, college, or other institution that is not obliged to provide a report of revenue or loss under any other provision of this section is required to make a return under section 139(4D).
  • Every business trust that is not required to provide a report of income or loss under another provision of this section is required to make a return under section 139(4E).
  • Any investment fund mentioned in section 115UB is required to submit a return in accordance with section 139(4F). Under any other requirements of this section, it is not necessary to provide a return of income or loss.

Documents to be Attached with Form ITR 7

ITR 7 is an annexure-less form. It is not necessary to attach any document with this return. However, taxpayers should tally their tax details with their tax credit statement Form 26AS before filing their ITR.

What is the Structure of ITR Form 7?

This form is sectioned into four key parts:

1. Part A

2. Schedules

3. Part B

4. Verification

Part A – General information

It is the first part of the form, furnishing the taxpayer’s details such as:

  • Name (as written in the deed of creation/ establishing/ incorporation/ formation)
  • PAN Address
  • Date of formation/ incorporation official contact number (with STD code for landline)
  • Email Address
  • Information about projects or institutions the assessee runs
  • Details of registration or approval under the Income Tax Act and other laws

The subsequent subsections include:

  1. Filing Status

Some of the details of this subsection include:

  • Return filed on, before, or after the due date
  • Whether it is a revised or modified return
  • Date of filing of original return if the return is revised or modified
  • If submitted in response to a notice
  • Section under which the return is furnished
  • Section under which the taxpayer is claiming exemptions
  • Taxpayer’s residential status
  • Declaration about unlisted equity shares
  • Audit information

Whether an audit is required

  • Audit liability under an act other than the Income Tax Act
  • The auditor’s name
  • Audit report date
  • The date of furnishing the audit report
  • Other details
  • Information about unlisted share investments, Section 80G approval status, and so on are entered under various fields.

Schedules in the ITR Form 7

ITR 7 contains 23 schedules. The table below lists some of the principal schedules in the form.

Schedule

Purpose

Schedule-I

For taxpayers covered under Section 11(2) and 10(23C)

Schedule-J

For assessees under Section 12A and 12AA or specific subsections of 10 (23C)

Schedule-LA

This applies to political parties

Schedule-ET

Relevant for Electoral trust

Schedule-AI

For entities claiming exemption under Sections 11, 12 or various subsections of 10(23C)

Schedule-J

For investments of the funds of the trust/ institution as on the previous fiscal’s last day

Schedule-VC (Compulsory)

For voluntary contributions received

Schedule-K

For details of founders, trustees, managers, or authors of the trust or institution

Schedule-ER

For revenue expenditures

Schedule-EC

For expenses towards charitable or religious purposes

Schedule-HP

For income from house property

Schedule-CG

For Short- and long-term capital gains

Schedule-SH

For unlisted shareholdings

Schedule-OS

For income under the head “Other Sources”

Schedule-OA

Lists information about business and profession

Schedule-BP

For gains from business or profession

Schedule-CYLA

To state income after set-off of losses

Part B

Part B of ITR 7 is divided into three major sections:

TI - This subsection acts as a statement of income containing the details of:

  • Gross income for the applicable financial year, including losses set off
  • Deductions claimed
  • Applicable exemptions
  • Total taxable income

TTI - This subsection reflects the tax computation. Details include:

  • Tax payable on total income
  • Surcharge
  • Cess
  • Tax relief applied
  • Penal interest is owed if any taxes paid
  • Taxes due
  • Refunds due, if any

Tax details - This section contains information about the total tax paid for the fiscal through TDS, TCS, GST, advance tax, and self-assessment tax.

ITR V – Return Verification Form

It is a one-page document certifying the accuracy of the details provided in the ITR.

How to Fill out the ITR 7 Form?

As per the Income Tax Act, it is necessary to maintain the following flow while filing the returns online:

  • Part A All schedules
  • Part B Verification
  • Guidelines for filing ITR 7

Taxpayers have to write ‘NA’ against schedules and particulars that are not relevant to them.

Zero-value figures are to be denoted as ‘Nil’. Negative values must include the minus (-) sign before the figure showing the value.

All amounts must be entered as the nearest multiple of ten. Non-resident Indians required to file ITR 7 can provide details of bank accounts in a foreign country to receive tax refunds.

It is compulsory to file the ITR 7 Form online on the Income Tax Department’s website. The options include:

  • Transmitting the data and verifying the returns electronically
  • Submitting the return details digitally, followed by downloading the return verification form ITR-V
  • For the second option, the person filing the return must print out a hard copy of the ITR V Form and send it to the Centralised Processing Center (CPC) Office.

Important Things to Consider

To ensure a seamless filing process, here are some crucial things to remember when filling the ITR 7 form.

Filing Deadline

The deadline for submitting ITR 7 usually falls on July 31 of the assessment year.

Compulsory E-Filing

Trusts and entities filing ITR 7 must use the electronic filing (e-filing) method.

Audit Report Requirement

A mandatory audit report under Section 44AB is necessary if the total income surpasses the specified limit.

Verification Process

The designated person authorized to verify the form, often the managing trustee or principal officer, must complete the verification process.

Who Must File the ITR 7 Form?

Taxpayers, persons or companies who are claiming exemptions under the following categories are liable to file Form ITR 7:

Under Section 139(4A)

Taxpayers earning from properties held entirely or partially under a legal obligation or as a trust for a charitable or a religious purpose have to file their returns with the ITR 7 Form.

Under Section 139 (4B)

Political parties claiming tax exemption under Section 13A must file annual returns using the ITR 7 Form. Also, if the earnings from a political party exceed the 13A exemption limits, the ITR 7 Form needs to be filed.

Under Section 139(4C)

As per this section, filing Form ITR 7 is compulsory for the following entities:

  • Scientific research institutes
  • Association or institution mentioned in Section 10(23A)
  • News agencies
  • Government or non-government institutions listed under section 10(23B)
  • Funds/institution / University / educational institution/hospitals, clinics and other medical establishments

Under Section 139(4D)

The rules of this section mandate institutions, colleges and universities not covered under any other section, Khadi and village industries, to file ITR 7.

Under Section 139 (4E)

Business trusts not required to furnish income returns under any other provisions of this section must file ITR 7 under this section.

Under Section 139(4F)

Investment funds referred to in Section 115UB are required to furnish returns using ITR Form 7 under this section.

How to e-verify ITR 7?

This verification process is called e-verification because it is done electronically. In the case of political parties, the CEO or the secretary must verify the return through a digital signature certificate (DSC). Other taxpayers can choose the following options to e-verify the return:

  • Signing with DSC
  • Authenticating through EVC or Aadhaar OTP

How to e-file Audit Reports?

Assesses liable for audits under Section 44AB must provide the details of audits on their accounts by an accountant to the tax authorities. Such audit information and the report submission date to the tax department must be filed under the subsection “Audit Information” in the ITR 7 Form.

How to Send the ITR V to the CPC Office?

After furnishing the returns electronically and ITR 7 form downloading the soft copy of the ITR-V from the Income Tax Department’s website, a password is required to open it. The printed copy has to be signed in blue ink. Within 120 days of e-filing the tax return, taxpayers must send the ITR V via ordinary post or speed post to the following address:

Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka)

The form cannot be couriered. It is advisable to take a second printout of the verification form and retain it as a record of taxes paid and returns filed.

Conclusion

Companies with social engagements, such as news agencies, charitable trusts, religious bodies, educational or scientific research institutions, and the like, need to file Form ITR 7. Such organizations must provide their income and tax payment details in this form. However, the different schedules and sections in the form might appear confusing.

This comprehensive guide is designed to explain the various sections in the ITR 7 Form with instructions for filling it correctly. It will help avoid mistakes and simplify the process of filing the return of income.

Key takeaways

  • The Income Tax Department of India has designed various ITR forms to cater to the diverse needs of taxpayers.
  • Every individual receiving income from property held under a trust or other legal obligation that is used entirely or mostly for charity must file a return under section 139(4A).
  • A political party must file a return under section 139(4B) if its total revenue exceeds the amount that is exempt from income taxation after applying section 139A’s requirements.
  • The document must be duly signed before furnishing the return.

- A Consumer Education Initiative series by Kotak Life

Amit Raje
Written By :
Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Amit Raje
Reviewed By :
Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

Kotak Guaranteed Fortune Builder

Download Brochure

Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.

  • Guaranteed@ Income Benefit for upto 25 years
  • Flexibility to choose income period
  • Premium break for females on child birth or any listed specific illnesses
  • Life cover for the premium payment period
  • Enhance your life cover with rider offerings

ARN. No. KLI/23-24/E-BB/1201

T&C

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Buy Online

- A Consumer Education Initiative series by Kotak Life

Kotak Guaranteed Fortune Builder Kotak Guaranteed Fortune Builder

Kotak Guaranteed Fortune Builder

Guaranteed Income for bright financial future

Invest Now
Kotak Assured Savings Plan Kotak Assured Savings Plan

Kotak Assured Savings Plan

Guaranteed Lumpsum returns for achieving life goals

Invest Now
Kotak Guaranteed Savings Plan Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan

Achieve your long-term goals and get life cover

Invest Now