If you run a religious or charitable organisation, you need to report any income from such entities using ITR-7. Basically, any person that can claim tax exemptions under Section 139 of the Income Tax Act must file this form. To know more about how to file ITR-7 go through the following sections carefully.
In case a taxpayer needs to learn about how to file ITR, the person must know that there is a particular sequence that needs to be maintained while doing so. The sequence is as follows:
These are the two primary ways in which a taxpayer can file ITR 7 with the IT Department of India:
Even though the first one is a partially online procedure, the taxpayer needs to sign the ITR V copy and send it to Post Bag No. 1, Electronic City Office, Bangalore: 560100 (Karnataka) by ordinary post.
Here is the procedure of filling out the verification document:
Step 1: Provide accurate details in the verification document.
Step 2: Make sure to strike out information or pointers that are not applicable.
Step 3: Before submitting the final return, ensure that your digital signature is there in the document.
Note that in case of providing any misinformation in such documents or making false statements, the taxpayer will be penalised under the concerned Section of IT Act. It can not only lead to a hefty fine but also imprisonment for a specified period.
Organisations, firms, or local authorities deriving their income from properties that are not meant for religious or charitable purposes need to file ITR 7. For filling out the ITR 7 form, assessees can provide their returns through physical paperback forms, barcoded forms, using a digital signature or by verifying return submission through ITR V form.
Before you learn about the process of how to file ITR 7 for AY 2023-24, you should check who must file it.
The parameters that individuals or companies need to meet for filing ITR 7 are mentioned below:
Assessees who are not claiming tax exemptions under Section 139(4B), Section 139(4A), Section 139(4D), Section 139(4C) do not need to file ITR 7.
While learning about how to file ITR 7, one must know that the structure of the form is also crucial. Note that the form is divided into two parts and consists of 19 schedules. These components are as follows:
Even those companies or entities working under a trust, running educational institutes, medical institutions and religious organisations need to file their tax returns as per the IT Act. For these businesses learning how to file ITR 7 is crucial, and the abovementioned information should be of help.
Ans: Section 139(4A) states that income from properties held under obligation or trust for religious or charitable purposes must file ITR 7. Remember that every person who receives such income wholly or partly for charity must report the same using this form.
Ans: When the total annual income of chief executive officers or CEOs of a political party exceeds the maximum tax-free amount, he/she must furnish form ITR 7 under Section 139(4B).
Ans: Even Non-Resident Indians who operate such charitable or religious organisations and earn an income from the same must file ITR 7 as well. However, NRIs can provide details of foreign bank accounts during the filing process to receive tax refunds there.
Ans: Taxpayers must follow the below-mentioned guidelines:
a) Any zero value figures must be written as NIL
b) Taxpayers must round off all amounts to the nearest multiples of 10
c) Any negative values should include a minus sign before the figure
Ans: Part B of ITR 7 has three distinct sections. These include:
a) TI – This Section includes information on deductions, exemptions, and total taxable income
b) TTI – Under this Section, you will find information such as tax relief, tax payable, penal interests, cess, surcharge, and more.
c) Tax details
Before you go…