Income from Trust


ITR 7 Form Filing

ITR 7 Form filing is done by the companies who service the income from the properties that are of charitable or religious purposes. Properties that are held under the trusts or legal obligation in parts or even wholly are included in the category.
ITR taxpayers can fill the ITR 7 Forms by providing the returns through a bard coded form, physical paperback forms, or the digital signature mode, or the submission of return verification through ITR Form V.
ITR 7 Form is a file when the person and the companies fall under section 139(4A) or Section 139 (4B) or Section 139 (4C) or Section 139(4D).

Eligibility for ITR 7 Form filing

Who is eligible for ITR 7 Form filing?

ITR 7 u/s 139 (4A)

Individuals having income from the property that is used solely or partially for charitable or religious purposes and such property is to be held under a legal obligation or trust.

ITR 7 u/s 139 (4B)

This section applies specifically to the political parties. Under Section 13 A the political parties are exempted from filing the income tax return provided that the parties are filing the annual returns through Form ITR 7.

ITR 7 u/s 139 (4C)

Under this the ITR 7 is to be filed by the following entities:

  • Association that is conducting scientific research.
  • News agency
  • Association u/s 10 (23A)
  • Other enlisted institues u/s 10 (23B)

ITR 7 u/s 139 (4D)

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

ITR 7 u/s 139 (4E)

Filing the returns of the income done by a business trust.

ITR 7 u/s 139 (4F)

Is to be filed by any investment fund that is referred to in section 115 UB. There is no necessity to furnish the returns of income or loss under any provision of this section.

Structure of ITR 7 Form

What is the structure of the ITR 7 Form?

The ITR 7 Form has been divided into two parts and nineteen schedules.
  • Part A General information
  • Part B Outline of the total income and tax computation concerning income chargeable to tax.
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 investment of all funds of the Trust or Institution 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-HP Computation of income under the head Income from House Property.
Schedule-CG Computation of income under the head ITR.
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 (n)
Schedule-MATC Computation of tax credit under section 115JAA
Schedule AMT Computation of Alternate Minimum Tax payable under section 115JC (p)
Schedule AMTC Computation of tax credit under section 115JD
Schedule-SI Statement of income which is chargeable to tax at special rates
Schedule-IT Statement of payment of advance-tax and tax on self-assessment.
Schedule-TDS Statement of tax deducted at source on income other than salary.
Schedule-TCS Statement of tax collected at source
Schedule FSI Details of income accruing or arising outside India
Schedule TR Details of Taxes paid outside India
Schedule FA Details of Foreign Assets

Sequence for filing ITR 7 Form

What is the sequence for filing ITR 7 Form?

The Income Tax Department has advised the assessees to follow the sequence that is mentioned below while filing the Income Tax return.
  • Part A
  • Part B
  • Schedules
  • Verification.
Enter the information required in the verification document and strike out the which is not applicable and this verification must be digitally signed before furnishing the final return.
It is necessary for the person signing to mention his designation in the entity on behalf of whom the return is being filed.

Procedure to file ITR 7 returns

How to fill the verification document?

The required information is to be filled in the verification document. Strikeout whatever is not applicable. Pleasure ensures that the verification has been signed before the returns are furnished. Choose the designation/ capacity of the person signing the return.
It is to be noted that any person who is making a false statement in return or accompanying the schedules should be liable to be prosecuted under the section which can lead to imprisonment and also a fine.

E filing audit reports

If the assessee is liable for auditing u/s 44AB and the accounts have been audited by the accountant then the details of such audit reports along with the furnishing date are to be sent to the income tax department. It is to be under the head "Audit Information"

No annexures required

No documents are to be attached with this return while filing ITR 7 Form.
The Taxpayers should match the taxes that are deducted/ collected paid by or on behalf of them with their Tax Credit statement form 26AS.

Instructions to be followed while filing ITR 7 Form

The Income-tax department has outlined several methods through which the taxpayers can file ITR-7:

  • All the details must be filed properly as indicated or else the return will be defective or invalid.
  • The figures relating to tax and incomes must be rounded off to the nearest multiples of ten rupees.
  • Other figures must be rounded off to the nearest one rupee.
  • Negative figures or the loss figures shall be written as "-" before such a number unless provided otherwise.
  • “Nil” to be written for Figures with zero or nil value.
  • If any item doesn’t apply to the assessee write “NA” against it.