ITR-7 Return Filing

The Income Tax Act, 1961, levies tax on income of entities earned in a specific financial year. The person liable to pay income tax hereinafter referred to as “assessee” could be an individual, partnership, Hindu Undivided Family, or any other business entity.

Taxpayers have been categorized in the Act to make tax compliances easy for everyone. Taxpayers shall compute income tax liability based on methods and conditions laid down in Income Tax Act, 1961. Apart from the category of taxpayer and methods for filling ITR, forms used for filing income tax return also vary as per the assessee filing the ITR. This article covers comprehensive information on Form ITR-7.

Eligible entities to file ITR-7

1. ITR-7 u/s 139(4A)

Those persons whose income is from property used either solely or partially for charitable or religious trust and such property must be held under a legal obligation or trust.

2. ITR-7 u/s 139(4B)

This section specifically applies to political parties. As per section 13A political parties are exempted from filing income tax return provided they file the annual return through form ITR-7.

3. ITR-7 u/s 139(4C)

Under this, ITR-7 is filed by following entities:

Association conducting scientific research
News agency
Association u/s 10(23A)
Other institutes enlisted u/s 10(23B)

4. ITR-7 u/s 139(4D)

Schools, colleges, and institutions not covered under any section of the Income Tax Act are required to file ITR-7 under this regulation.

5. ITR-7 u/s 139(4E)

Filing of Return of Income by a business trust

6. ITR-7 u/s 139(4F)

Filing of Return of Income by Investment Fund

Section 139(4A)

Every person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contributions referred to in section 2(24)(iia) shall, if the total income in respect of which he is assessable as a representative assessee (the total income being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars, as may be prescribed, within the time allowed under section 139(1).