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Income Tax Return form ITR 7 is a form used by trusts to file their annual income tax returns. Learn about the eligibility criteria, filing procedure and much more by reading this comprehensive guide by H&R Block India.

ITR 7 – Income Tax Return Form for Trusts

Last Update Date : July 26, 2018

What is Form ITR 7?

The Income Tax Department of India issues Form ITR 7 forms for Trusts to file their income tax returns.

Who is Required to File Form ITR 7 for Assessment Year 2017-18?

Persons including companies, who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4D) or section 139(4E) or section 139(4F) can use the Form ITR-7 to file their tax return.

Understanding Structure of the ITR 7 Form

This return form is divided into the following 3 parts:

Part A-GEN mainly seeks general information requiring furnishing of personal information like name and address, PAN number, date of creation, filing status, other details and audit details. The second part, i.e., Part-B is regarding an outline of the total income and tax computation in respect of income chargeable to tax. There are the following 25 schedules:

  • Schedule-I: Details of amounts accumulated/ set apart within the meaning of section 11(2) in last year’s viz., previous years relevant to the current assessment year.
  • Schedule-J: Statement showing the funds and investments as on the last day of the previous year.
  • Schedule-K: Statement of particulars regarding the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc., of the Trust or Institution.
  • Schedule-LA: Details in case of a political party.
  • Schedule-ET: Details in case of an Electoral Trust
  • Schedule AI: Aggregate of income referred to in section u/s 11 and 12 derived during the previous year excluding Voluntary contribution forming part of corpus as per section 11(1)(d) and voluntary contributions
  • Schedule ER: Amount applied to charitable or religious purposes in India during the previous year – Revenue Account
  • Schedule EC: Amount applied to charitable or religious purposes in India during the previous year– Capital Account [excluding application from borrowed funds and amount exempt u/s 11(1A)]
  • Schedule-HP: Computation of income under the head Income from House Property.
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-VC: Details of Voluntary Contributions received
  • Schedule-OA: General information about business and profession.
  • Schedule-BP: Computation of income under the head ‘profit and gains from business or profession’
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
  • Schedule-MATC: Computation of tax credit under section 115JAA
  • Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule-PTI: Statement of income from Business Trust or Investment Fund as per section 115UA, 115UB.
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule 115TD: Accreted income under section 115TD
  • Schedule FSI: Details of income accruing or arising outside India
  • Schedule TR: Details of Taxes paid outside India
  • Schedule FA: Details of Foreign Assets and Income

Instructions for Filling out Parts and Schedules

You can fill your Form ITR 7 as per the given guidelines:

General Guidelines

  • All items must be filled in the manner indicated therein; otherwise, the return may be liable to be held defective or even invalid.
  • If any item is inapplicable, write ‘NA’ against that item.
  • Write ‘Nil’ to denote nil figures.
  • Except, as provided in the form, for a negative figure/figure of loss, write ‘-’ before such figure.
  • All figures should be rounded off to the nearest one rupee. However, the figures for total income/loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

Sequence for Filling out Parts and Schedules

As per the Income Tax Department, an assessee should follow the below-mentioned sequence while filing ITR:

  • Part A
  • Schedules
  • Part B
  • Verification

How to File Form ITR 7?

You can file form ITR 7 online with the Income Tax Department in the below-mentioned ways:

  • By furnishing the return electronically under digital signature.
  • By transmitting the data electronically and then submitting the verification of the return in the Form ITR-V.
  • By transmitting the data in the return electronically under electronic verification.

Note:

  • A political party shall compulsorily furnish the return electronically under digital signature.
  • From assessment year 2013-14 onwards in case an assesse, who is required to furnish a report of audit under section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW he shall file the report electronically on or before the date of filing the return of income.

How to Fill up the Verification Document?

Keep the following points in mind while filling up the verification document:

  • You are supposed to fill up the required information in the verification. You can strike out whatever is not applicable.
  • Ensure that the verification has been signed prior to furnishing the return. Also, write the designation of the person signing the return.
  • You must note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income Tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

Latest Changes in ITR 7 Form for AY 2018-19

Changes in ITR 7 Details
Penalty for late filing of ITR A new field has been added where the late filers need to provide the details of late filing fees paid.
Capital gains as a result of transfer of unquoted shares A new filed has been added for the taxpayers to provide information on unquoted shares in accordance with the amendment in the section 50CA of the Finance Act, 2017.
Reporting gifts A field has been added to report the amount taxable as gift.
Credit of refund to foreign bank account A field has been added where an NRI taxpayer can provide the details of a foreign bank account in which he wants the credit of the tax refund he wants to claim.
Reporting disallowance of expenses A new field has been added to report disallowance of expenses in case of TDS default.
Claiming credit of TDS deducted in the name of another person A new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.
Claiming relief under DTAA The form now asks the taxpayer claiming relief as per DTAA to report more details like rate as per treaty, rate as per I-T Act and applicable rate etc.
Claiming exemption on capital gains The taxpayers now need to provide more details in the form if they are claiming capital gains exemption.
Reporting remission or cessation of trading liability New forms require separate reporting of remission or cessation of trading liability in case of income from other sources.
Reporting GST payments and refunds New columns have been introduced in the ITR forms to report the details of GST paid and refunded.
Reporting cash donations Political parties now need to report if they have received any cash donation in excess of Rs 2,000 in the form.
Change in applicability A trust will now be required to provide the details of fresh registration in case its stated objects have changed.

All these changes have been made by the tax department in the ITR form are aimed at making the assessment procedure online. Therefore, we can see that the department is seeking more and more information from the taxpayers to facilitate e-assessment.

Changes Made in the Form ITR 7 for AY 2017-18

Disclosure of ‘unexplained income’ and ‘dividend income’ in excess of Rs 10 lakh

Under ‘schedule OS,’ you are required to declare unexplained credit or investment and dividend received from domestic companies exceeding Rs 10 lakh.

Frequently Asked Questions

What if Annexure is not Attached to the Return Form?

  • You are not supposed to attach any document (including TDS Certificate) to this return form. Such documents enclosed with the return form will be detached and returned to you.
  • Taxpayers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS).

Where should I Fill the Details of Audit Report in the Form?

Under the head ‘Audit Information,’ if the assessee is liable for audit u/s 44AB and the accounts have been audited by an accountant, then the details of such audit report along with the date of furnishing it (if filed before the return) to the department has to be filled.

Not sure how to file your Business Tax Return? Let H&R Block help you file your taxes.
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