An assessee is responsible to file an Income Tax Return (ITR). Different ITRs have to be filed by different kinds of taxpayers before the due dates. ITR-7 is one of those ITR which is filed by the individuals & companies which fall under section 139(4A) or 139 (4B) or 139 (4C) or 139 4(D).
There are different sections which governs the compliances to adhere to while filing ITR-7. The sections are as follows:
- Section 11
- Section 10 (23C)(iv)/10(2 3C)(v)/10(23C) (vi)/10(23C)(vi a)
- Section 10(23C) (iiiab)/(iiiac)
- Section 10(23C) (iiiad)/(iiiae)
- Section 13A
- Section 13B
- Section 10(21), 10(22B), 10(23AAA), 10(23B), 10(23D), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(29A), 10(46), 10(47)
- Section 10(23AAA)
- Section 10(23A), 10(24)
Here, we will briefly discuss the compliance requirements to file ITR-7 as per these sections. Compliance requirements Under Section 11 and Section 10 (23C)(iv)/10(2 3C)(v)/10(23C) (vi)/10(23C)(vi a) ask for the registration/ approval under section 12/12AA and Section 10 (23C)(iv)/10(2 3C)(v)/10(23C) (vi)/10(23C)(vi a), respectively along with details furnishment under “Details of registration under the Income Tax Act” in Part A General.
Section 139(4A) and Section 139(4C) is the Return filing section for the former and the latter one, respectively. Schedule VC and AI are for offering the contribution and income under section 11 while under section 10 (23C)(iv)/10(2 3C)(v)/10(23C) (vi)/10(23C)(vi a), the contribution and income are offered in schedule VC and AI.
Other compliances under Section 11 And Section 10 (23C)(iv)/10(2 3C)(v)/10(23C) (vi)/10(23C)(vi a) are as follows:
Amount spent for the charitable purpose has to fill schedule ER, EC.
Assessee claiming exemption via deemed application has to furnish details in point 4 of schedule part BTI and Form 9A before the deadlines.
Assessee claiming exemption via Accumulation has to furnish the details in Point 4 of schedule Part BTI and Form 10 before the deadlines.
Other taxable income has to be offered in schedule HP, BP, CG and OS.
Non-adherence to Section 11 & 12 or unqualified to claim exemption has to fill Sl.No. 5 of schedule Part-BTI.
Form 10B and Form 10BB, respectively under section 11 and the other, has to be furnished for Audit report along with the return of income before the due date.
All other sections comply the Registration/Approval under any law which is applicable besides the Income Tax Act. Return filing section is 139(4C) under Section 10(23C) (iiiab)/(iiiac), Section 10(23C) (iiiad)/(iiiae), Section 10(21), 10(22B), 10(23AAA), 10(23B), 10(23D), 10(23DA), 10(23EC), 10(23ED), 10(23EE), 10(29A), 10(46), 10(47), Section 10(23AAA) and Section 10(23A), 10(24), whereas under section Section 13A and Section 13B, 139(4B) is the Return filing section.
Other Compliance requirements Under Section 10(23C) (iiiab)/(iiiac) includes offering the contribution or income in schedule VC and IE-3. Exemptions claimed u/s 10(23C) and u/s 10(23C) (iiiac) should be filed in point 9a of schedule part BTI and 9b of schedule part BTI, respectively. Other taxable income has to be offered in schedule HP, BP, CG and OS, while the gross receipts and Grants received from Government, have to be furnished in Schedule IE-3 in addition to Schedule VC for the grants received from the government.
139(4D) is the return filing section under Section 10(21) read with section 35(1) clause ii and iii. Under Section 10(20), 10(23AA), 10(23AAB), 10(23BB), 10(23BBA), 10(23BBC), 10(23BBE), 10(23BBG), 10(23BBH), 10(23C)(i), 10(23C)(ii), 10(23C)(iii), 10(23C)(iiia), 10(23C)(iiiaa), 10(23C)(iiiaaa), 10(25)(i), 10(25)(ii), 10(25)(iii), 10(25)(iv), 10(25)(v), 10(25A), 10(26AAB), 10(26B), 10(26BB), 10(26BBB), 10(44)) where income is exempt unconditionally, the return filing sections is “Others”. For all these sections, other taxable income has to be offered in schedule HP, BP, CG and OS and the contribution or income is offered in schedule VC and IE-1.
For a complete version of the checklist to avoid mistakes in filing ITR 7 for AY 2019-20, here:
Also, there are some changes in the utilities of ITR 6 and ITR 7 to avoid any bugs in due course of filing the schedule of TDS and FSI. Note that the changes do not impact any schema of XML. The taxpayer must download the latest utility of excel before proceeding.