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This ITR is to be filed by the trust having income from charitable or religious properties. As Trusts are formed for charitable or religious purposes and are not only intended to do any commercial activities along with various benefits, but also have exemptions under section 11.
It is a must that trust should have registration under section 12A, as they are only allowed to use the 85% of their income & 15% of the income can be set apart or accumulated.
Thus, ITR-7 is the document used by the persons having income under:
139(4A): Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
139(4B): Return under section 139(4B) is required to be filed by a political party.
139(4C): Return under section 139(4C) is required to be filed by every scientific research association; news agency; association or institution referred to in section 10(23A).
139(4D): Return under section 139(4D) is required to be filed by every university, college, or other institution, which is not required to furnish return of income or loss under any other provision of this section.
The followings are sources of income for trust would be are as follows:
Income from Voluntary Contributions
Income derived from the property held under trust
Voluntary contributions made with a specific direction shall form part of the corpus of the trust
Income under section 11 & 12
The following persons are eligible to file the ITR-7:
A person having income from Charitable & Religious purpose
Associations that carry out any scientific research
Educational institutions such as schools, colleges, or universities
Any hospital or other medical institution
Taxpayers not claiming exemption under sections 139(4A), 139 (4B), 139(4C) and 139(4D) are not liable to file ITR-7.
Following documents are required for successful filing of the ITR-7:
Name of Project or institutions run by the assessee.
Details of Author/Trustee/Founders of the trust.
Details of Registration or approval under the income tax act.
Expenditure details under ER and EC.
Details of Accumulated Amount.
ITR-7 can be filled only in offline mode.
Pre-requisites for filing ITR-7:
Registered user on E-filing portal with a valid username and password.
The status of the pan should be active.
Download the Offline Utility, fill in the information in the related schedules of ITR-7.
Generate the JSON file and upload it online on the income tax portal.
Structure of the ITR-7 Form.
ITR-7 form has been divided into 2 parts and many schedules:
Part A – General Information
Part B - Schedules Related to Computation
In ITR Form
Details of amounts accumulated / set apart within the meaning of section 11(2) or in terms of third proviso to section 10(23C)
Statement showing the investments of all funds of the trust or institutions as on the last day of the previous year
Statement of particulars regarding the Author(s)/ Founder(s)/Trustee(s)/ Manager(s), etc., of the Trust or Institution
Aggregate of income derived during the previous year excluding Voluntary contributions
Revenue expenditure incurred during the year and amount applied to stated objects of the trust/institution during the previous year Revenue Account
Amount applied to charitable or religious purposes in India or for the stated objects of the trust/institution during the previous year– Capital Account
Income & Expenditure Statement
Details of Income from House Property – Taxable income
Capital Gains – Taxable income
Income from other sources – Taxable income
Computation of income from business or profession – Taxable income
Details of Income after set-off of current year losses
Pass Through Income details from business, trust or investment fund as per section 115UA, 115UB
Income chargeable to tax at special rates
Details of Income from outside India and tax relief
Summary of tax relief claimed for taxes paid outside India
Details of Foreign Assets and Income from any source outside India
Shareholding of Unlisted Company
Computation of total income
Computation of tax liability on total income
Schedule Taxes Paid
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