Income Tax Return (ITR)

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e-Filling of Income Tax Return - ITR Filing in India

In India, e-Filing of Income tax Return or ITR filing in India is essential for individuals to report their income and taxes to the government. The Income Tax Act of 1961 provides various forms, including ITR-1 (Sahaj) and ITR-2. ITR-1 is simple and meant for salaried individuals earning up to Rs. 50 lakhs annually. On the other hand, ITR-2 is for those with other income sources besides salary, like income from property or abroad, but do not earn from business or professional activities.

In India, individuals and businesses must submit their income tax return when their Gross Total Income (GTI) surpasses Rs. 3 lakhs, as incomes below this threshold are exempt. Submitting these returns is an annual requirement and must be completed by a set deadline. Several types of income tax return forms are designed to cater to the distinct requirements of various categories of taxpayers, including both individuals and corporate entities.

Return TypeApplicability
ITR-1ITR-1 form can be used by Individuals who have less than Rs.50 Lakhs of annual income earned by salary or pension and have only one house property.
ITR-2ITR-2 forms must be filed by NRIs, directors of companies, shareholders of private companies or those having capital gains income, income from foreign sources, two or more house properties, and income of more than Rs.50 lakhs.
ITR-3The ITR-3 form must be filed by professionals or proprietorship business owners in India.
ITR-4ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled for the scheme, the taxpayer must have less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income.
ITR-5ITR-5 form must be filed by partnership firms, LLPs, associations and bodies of individuals to report their income and computation of tax.
ITR-6ITR-6 form must be filed by companies registered in India.
ITR-7ITR-7 form must be filed by entities claiming exemption as charitable/religious trust, political parties, scientific research institutions and colleges or universities.

Individuals, NRIs, partnership firms, LLPs, companies and Trusts must file income tax returns annually. Individuals and NRIs must complete income tax filing if their income exceeds Rs.2.5 lakhs per annum. Proprietorship and partnership firms must make income tax returns - irrespective of the amount of income or loss. All companies and LLPs must file income tax returns, irrespective of turnover or profit.

Personal income tax return filing need to be filed by following persons:

  • Salaried Individuals: Those who earn a salary and whose income exceeds the tax-exempt threshold. Personal income tax filing need to be filed by following persons:
  • Individuals and Hindu Undivided Families (HUFs): Those not involved in business or professional pursuits but with other sources of income, such as investments, property, or capital gains, that bring their total income above the tax-free limit.

As mentioned above, the Income Tax Department of India provides a range of ITR forms, from ITR-1 to ITR-7, designed to cater to different taxpayers based on their income sources, amount, and complexity. The following two forms need to be submitted for Personal Income Tax Filing:

  • ITR-1 (SAHAJ)
  • ITR-2

ITR-1 Return Filing Sahaj Form

The ITR-1 Sahaj Form is designed to simplify the tax filing process for individual taxpayers in India, particularly aimed at residents with a total income of less than Rs. 50 lakhs. This form accommodates income from specific sources such as:

  • Salary or Pension
  • A single-house property
  • Other miscellaneous sources

Eligibility for Filing ITR-1

ITR-1 income tax filing is intended for Resident Individuals under the following conditions:

  • Income Limit: The individual’s total income during the financial year should be Rs. 50 lakh.
  • Applicable Income Types: Eligibility for ITR-1 includes individuals earning income from:
  • Salary
  • One house property
  • Family pension (up to Rs. 5,000)
  • Other sources, such as:
  • Interest from Savings Accounts
  • Interest from Deposits (Bank/Post Office/Cooperative Society)
  • Income Tax Refund Interest
  • Interest on Enhanced Compensation
  • Other Interest Income
  • Family Pension
  • Income Aggregation: Income can be combined with that of a spouse or minor only if it aligns with the specified categories above.

ITR-2 Return Filing

ITR-2 is used in India by individuals and Hindu Undivided Families (HUFs) with income that does not include profits and gains from business or professional activities. It’s specifically designed for those with diverse income sources, excluding business or professional earnings.

Who Should File ITR-2?

You’re eligible to file ITR-2 income tax filing if you have income from the following sources:

  • Salary or Pension: This includes all earnings from employment or post-retirement benefits.
  • Multiple House Properties: Income from renting out or owning more than one property.
  • Capital Gains: This includes profits or losses from selling assets like stocks, bonds, or property, covering both long-term and short-term transactions.
  • Other Sources: This category includes various incomes such as lottery winnings, bets on racehorses, and other legal gambling earnings.
  • Agricultural Income: If you earn more than Rs 5,000 from farming or similar agricultural activities.
  • Foreign Income or Assets: This applies if you have earnings from abroad or own assets outside India.
  • Residential Status: It’s suitable for either Resident Not Ordinarily Resident (RNOR) or Non-Residents.
  • Directorship: If you hold a directorial position in any company, whether listed or unlisted.

When income tax filing in India, ITR-1 and ITR-2 forms are designed to be annexure-less, meaning you’re not required to attach any supporting documents during submission. However, having the right documents is crucial for a smooth and accurate filing experience.

  • Aadhaar Card
  • PAN Card
  • Bank account details
  • Form 16 (salary and TDS information)
  • Form 26AS (tax credit statement)
  • Receipts for tax exemptions or deductions (if applicable)
  • Bank interest statements
  • Capital gains statements (for asset sales)
  • Documents related to foreign assets and income (if applicable)

For personal tax return filing in India, the general deadline for individuals filing ITR-1 and ITR-2, without needing a tax audit, is 31st July of the assessment year that follows the financial year in question.

A late filing fee of Rs 5,000 will be charged for income tax filing between 31 July 2024 and 31 December 2024. Small taxpayers whose total income is below Rs 5 lakh will benefit from a reduced penalty of Rs 1,000 for late filing within this period.

ITR-3 Return Filing

The ITR 3 Form is crucial for taxpayers earning income from a business or a profession. It plays a vital role in the Income Tax Department’s efforts to collect comprehensive financial information, ensuring tax compliance.

The ITR Form 3 can be used for filing an income tax return by individuals or Hindu Undivided Families (HUFs) who meet the following ITR 3 applicability criteria:

  • Directorship: The taxpayer is a director of a company or is engaged in a business.
  • Residential Status: The taxpayer’s residential status can be either resident or non-resident of India.
  • Pension Income: The taxpayer is receiving income from a pension.
  • House Property Income: The taxpayer is earning income from house property.
  • Investments in Unlisted Equity Shares: The taxpayer has investments in unlisted equity shares.
  • Income Under ‘Profits and Gains of Business or Profession: The taxpayer’s income is taxable under the category of ‘profits and gains of business or profession.’ This can include income elements such as salary, interest, commission, bonus, or remuneration.

Additionally, taxpayers can use the ITR Form 3 if their total income includes the following:

  • Income from a single-house property or multiple-house property.
  • Income from activities like lotteries, betting on races, and other legal forms of gambling as per Indian law.
  • Income from short-term or long-term capital gains.
  • Income earned from a business or profession conducted under a proprietorship firm owned by the individual or a Hindu Undivided Family (HUF).
  • Income earned from foreign assets.

Meeting these eligibility criteria allows individuals and HUFs to use the ITR Form 3 for filing their income tax returns, provided that their income falls into the specified categories mentioned above.

An individual or Hindu Undivided Family (HUF) earning income as a partner of a partnership firm engaged in a business or profession is not eligible to file ITR-3. In such cases, they should file ITR-2 instead.

The due date for filing the ITR Form 3, which is the income tax return, varies depending on whether the case is an audit case or a non-audit case for different assessment years:

  • For Assessment Year 2023-24:
  • Non-audit Cases: The due date is July 31, 2024
  • Audit Cases: The due date is October 31, 2024
  • These dates are subject to change by the income tax authorities, so it’s essential to stay updated with any revisions or extensions of the due dates.

The penalties for late filing of the ITR3 form in India are as follows:

If you file your return after the due date but before December 31 of the assessment year:

  • A late filing fee of ₹ 5,000 may be levied.
  • If you file your return after December 31 of the assessment year:
  • A late filing fee of ₹ 10,000 may be levied.

It’s important to note that the late filing fee may vary based on the taxpayer’s total income and other factors. Additionally, if your total income is less than ₹ 5 lakh, the maximum late filing fee is capped at ₹ 1,000. Therefore, it’s advisable to file your ITR form 3 on time to avoid these penalties and any potential legal consequences.

To file your income tax return (ITR) on IndiaFilings for ITR-3, the following documents are needed.

  • PAN (Permanent Account Number)
  • Aadhaar Card
  • Bank account details (account number and IFSC code)
  • Form 16, if applicable (for salaried individuals)
  • Details of your investments
  • Books of accounts (if you have a business or professional income)
  • Having these documents ready will make the ITR filing process smoother and more efficient.

ITR-4 Return Filing

The ITR-4 Form, commonly referred to as the Sugam form, is specifically designed for taxpayers who have opted for the presumptive income scheme outlined in Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act. It is mandatory for eligible taxpayers to complete and submit this form.

However, for businesses with an annual turnover exceeding Rs. 2 Crores, ITR-3 should be used. Additionally, depending on individual circumstances, ITR-5 may also be required. IndiaFilings offers expert assistance for the ITR 4 income tax filing. Contact our experts today to ensure a smooth and accurate filing process.

ITR 4 Form is the Income Tax Return form designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs) who choose to utilize the presumptive income scheme as per Sections 44AD, 44ADA, and 44AE of the Income Tax Act.

The presumptive taxation scheme is designed to simplify tax compliance for certain individuals and businesses.

Under Section 44AA of the Income Tax Act, individuals and businesses engaged in specific activities are typically required to maintain detailed accounting records. However, Sections 44AD, 44ADA, and 44AE offer relief to small taxpayers by allowing them to estimate their Income at prescribed rates, reducing the burden of maintaining extensive financial records. Here’s a breakdown of these schemes for users of ITR4:

This scheme allows Resident Individuals, Resident Hindu Undivided Families (HUFs), and Resident Partnership Firms (excluding Limited Liability Partnerships) engaged in certain businesses to calculate their Income on an estimated basis, provided they meet specific conditions.

Resident individuals in India who are professionals in fields specified under Section 44AA(1) can use this scheme to estimate their professional Income, subject to certain conditions.

This scheme is applicable to individuals, HUFs, Firms (excluding Limited Liability Partnerships), and other residents or non-residents engaged in the business of plying, leasing, or hiring goods carriages. They can estimate their Income under this scheme, provided they own not more than ten goods carriages during the previous year.

Eligibility Criteria for Filing SUGAM (ITR-4) Form

To qualify for using the ITR-4 SUGAM form, the taxpayer must meet the following criteria for the assessment year:

Total Income: The total Income should not exceed Rs. 50 lakh.

The Income should be derived from any of the following sources:

  • Income from Salary or Income from Pension.
  • Income from One House Property.
  • Interest income and/or Income from family pension taxable under Other Sources.
  • Income from a business, which is computed on a presumptive basis (Gross Turnover up to Rs. 2 crores).
  • Income from a business, computed on a presumptive basis (Income from goods carriage up to ten vehicles).
  • Income from a profession, computed on a presumptive basis under Section 44ADA (Gross receipt up to Rs. 50 lakh).

When Income is computed on a presumptive basis under sections 44AD, 44AE, or 44ADA, it is presumed to have been calculated after accounting for all allowances, depreciation, losses, or deductions as per the Income-tax Act. However, individuals incurring losses after applying the proviso to sub-section 3 of Section 44AE are required to file ITR-5.

If the taxpayer needs to combine the Income of another person, such as a spouse or minor child, with their own Income, the SUGAM form can only be used if the additional Income falls within the specified income categories mentioned above.

The following categories of taxpayers do not fall under the ITR 4 applicability criteria:

  • Directors of a company
  • Individuals who have held unlisted equity shares at any point during the previous year.
  • Taxpayers with assets, including financial interests, in any entity situated outside India.
  • Individuals who have signing authority in any account located outside the country.
  • Persons with Income from sources outside India.

Furthermore, the SUGAM form cannot be used by individuals who have Income of the following types during the previous year:

  • Profits and gains from business and professions that are not required to be computed under Section 44AD, 44ADA, or 44AE of the Income-tax Act. This includes Income from agency business, speculative business, commission, or brokerage income.
  • Income from more than one house property.
  • Capital gains.
  • Income derived from winning a lottery.
  • Engagement in the activity of owning and maintaining racehorses.
  • Income is subject to taxation at special rates under Section 115BBDA or Section 115BBE of the Income Tax Act.
  • Income that needs to be apportioned according to the provisions of Section 5A.
  • Agricultural Income exceeding Rs. 5,000.
  • Additionally, this return form is not suitable for individuals who have any claims related to loss, deductions, relief, or tax credits of the following nature:

Losses incurred in the past or losses intended to be carried forward under the category of “Income from house property.

  • Claims for relief under Section 9A, Section 90, or Section 91 of the Income Tax Act.
  • Loss under the Income from other sources.
  • Claims for deductions under Section 57, except for deductions related to family pension.
  • Claims for the credit of tax deducted at source in the hands of any other person.

The ITR 4 Form is structured into four parts for easy reporting of your Income and tax-related information:

This section of ITR 4 form includes your personal details such as name, gender, PAN number, date of birth, income tax ward, address, email address, and mobile number.

In this part, you report your Income from various sources categorized into five heads: Income from business, Income from salary or pension, Income from house property, and Income from other sources. By adding all these incomes together, you calculate your gross total Income.

Here, you list the deductions allowed under various sections of the Income Tax Act, such as 80C, 80D, 80E, and others. These deductions are subtracted from your gross total Income to arrive at your total taxable Income.

This section involves detailed calculations related to your tax liability. It includes factors like surcharge, relief under section 89, interest under section 234B and 234C, advance tax paid, TCS collected, refund, rebate under section 87A, cess on tax payable, and more. It computes your total tax payable, and if the total tax and interest exceed the taxes paid, it calculates the balance tax due.

For individuals reporting Income from business and opting for the presumptive income scheme under Section 44AD or 44AE, additional information needs to be provided:

  • Schedule IT: Statement of advance tax and self-assessment tax payment.
  • Schedule TCS: Statement of taxes collected at source (TCS).
  • Schedule TDS1: Statement of tax deducted at source on salary.
  • Schedules TDS2: Statement of tax deducted on Income other than salary.
  • Depending on your tax situation, you may also need to fill out supplementary schedules like TDS1, TDS2, IT, and TCS as required.

After completing all the necessary sections and schedules, you must verify and sign the return before submitting it. This ensures the accuracy and legitimacy of the information provided.

When using the SUGAM return form, taxpayers are not required to upload any additional documents, including TDS certificates.

ITR-5 Return Filing

The Income Tax Department has introduced various forms for different taxpayers. An assessee should choose the appropriate ITR form as per the source of income. One such Income Tax Return (ITR) is the ITR 5 Form. It is primarily designed for firms, Association of Persons (AOP), and Body of Individuals (BOI) who are not required to file their income tax returns as companies. In other words, it is meant for entities that do not have a corporate structure but still need to report their income and taxes to the Indian Income Tax Department.

DigiQore is your trusted partner for hassle-free and efficient Income Tax Return (ITR) filing services in India. Our ITR-5 service is designed to cater to the specific needs of firms, the Association of Persons (AOP), and the Body of Individuals (BOI) looking to file their income tax returns seamlessly. With our user-friendly platform, expert assistance, and competitive pricing, ITR 5 income tax filing has always been a challenge.

The following entities can use the ITR 5 Form:

  • Firm
  • Limited Liability Partnership (LLP)
  • Body of Individuals (BOI)
  • Association of Persons (AOP)
  • Estate of deceased individuals
  • Artificial Juridical Person referred to in section 2(31)(vii)
  • Business trusts and investment funds
  • Estate of insolvent individuals
  • Cooperative society
  • Local authority

However, it’s important to note that a person who is required to file the return of income under sections 139(4A), 139(4C),139(4B), or 139(4D) shall not use this form.

The ITR 5 due date depends on whether the taxpayer’s accounts need to be audited under the Income-Tax Act and whether they must furnish a report in Form No. 3CEB. Here are the different ITR 5 due dates:

  • When accounts are to be audited under the Income-Tax Act: The due date for filing ITR-5, in this case, is 31st October of the assessment year.
  • When a report in Form No. 3CEB is to be furnished: If the taxpayer is needed to furnish a report in Form No. 3CEB, the due date for filing ITR5 is 30th November of the assessment year.
  • In other cases (where accounts need not be audited): For taxpayers where accounts do not need to be audited under the Income-Tax Act, the ITR 5 due dates is 31st July of the assessment year.

The ITR 5 form is not meant for the following categories of taxpayers:

  • Individual assesses: Individuals should use the appropriate ITR form based on their sources of income. For example, most individual taxpayers use ITR-1, ITR-2, or other forms as applicable.
  • Hindu Undivided Family (HUF): HUFs must also use the relevant ITR form based on their income sources. Typically, they use ITR-2 or other applicable forms.
  • Company: Companies have their own set of ITR forms, such as ITR-6, for companies other than those claiming exemption under section 11.
  • Taxpayers who using Form ITR-7: Individuals or entities falling under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) are required to use Form ITR-7 for filing their income tax returns. These sections cover charitable trusts, political parties, educational institutions, etc.

It’s important to note that there is no requirement to attach documents with the ITR 5 income tax form.

The ITR5 Form is structured into several parts and schedules to facilitate the comprehensive reporting of income, deductions, and tax liability. Below is an overview of the structure of the ITR5 Form:

Part A: General Information

This section gathers essential information about the taxpayer, such as name, PAN (Permanent Account Number), address, and contact details.

Part A-BS: Balance Sheet

This part is dedicated to reporting the entity’s financial position with a balance sheet as of the specified date.

Part A-Manufacturing Account

Here, details related to the manufacturing account for the fiscal year are recorded.

Part A-Trading Account

This section captures information regarding the trading account for the fiscal year.

Part A and L: Profit and Loss Account

Here, you report the profit and loss account for the financial year.

Part A-OI: Other information

This section covers additional financial information relevant to the taxpayer’s income.

Part A-QD: Quantitative details

Quantitative details related to various aspects of income are provided here.

Part B

Part B is a pivotal section where taxpayers calculate and report their total income and tax liability.

Schedules

The ITR 5 income tax form in India includes 31 schedules, sections, or categories within the form. These schedules capture details and computations related to the taxpayer’s income and tax obligations. They cover various aspects, such as income from different sources, deductions, depreciation calculations, capital gains, and foreign income. Taxpayers must fill out these schedules as applicable to their financial situation to provide a comprehensive picture of their income and tax liability when filing their income tax returns. Each schedule serves a unique purpose in organizing and reporting financial information to the Indian Income Tax Department.

Part B – TI: Computation of Total Income

In this section, the taxpayer calculates their total income based on the information provided in the schedules.

Part B – TTI: Computation of Tax Liability on Total Income

This part focuses on determining the tax liability based on the computed total income.

Tax Payments:

This section includes details of payments made towards advance tax and self-assessment tax.

  • It also includes details of tax deducted at source on income other than salary (16A, 16B, 16C).
  • Additionally, it captures details of tax collected at the source.
  • Sequence for Filling Out Parts and Schedules:

The Income Tax Department recommends taxpayers follow the following sequence while filling out the income tax return:

  • Part A
  • Schedules
  • Part B
  • Verification

ITR-6 Return Filing

ITR-6 filing is a crucial annual compliance requirement for corporate entities in India. The Income Tax Return form is specifically designed for companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes). Filing ITR6 accurately and on time is essential to ensure compliance with the Income Tax Act 1961 and avoid penalties and legal complications. To simplify the ITR6 filing process and assist businesses in meeting their tax obligations efficiently, IndiaFilings provides a wide range of services tailored to suit the specific requirements of corporate entities.

ITR-6 is suitable for companies that do not seek exemption under section 11 (Income from property held for charitable or religious purposes).

Taxpayers who are not required to file the ITR 6 Form include:

  • Individuals
  • Hindu Undivided Family (HUF)
  • Firms
  • Associations of Persons (AOP)
  • Bodies of Individuals (BOI)
  • Local Authorities
  • Artificial Judicial Persons
  • Companies that seek exemption under section 11 of Income Tax Act.

Companies registered under the Companies Act or any other applicable law can file the ITR-6 Form, even if they do not claim exemption under section 11.

When the taxpayer is subject to an audit under section 44AB, and a qualified accountant has audited their accounts, it is mandatory to furnish electronic details of the audit report, including information about the auditor and the date on which it was submitted to the tax department.

ITR 6 is divided into Part A and Part B ( along with the sub-sections) with multiple schedules that include information relevant to the income and tax of the taxpayer. Let us have a detailed look at this.

Part A (and its subsections)

General information: This Sub-section should be filed with the basic details of the entity such as the Name, PAN number, address, CIN, Incorporation date, etc.

Trading Account: This sub-section requires the details that are relevant to the income and the expenditure of the company.

Balance sheet: This subsection should consist of the details of the balance sheet of the company such as the liabilities, current liabilities, share capital, and more.

Manufacturing account: This Sub-section required the figures of manufacturing the accounts relating to the inventory such as opening stock, closing stock, and cost of the goods that are produced.

Profit and Loss Account: This subsection should be filed with the details of the company’s profit or the loss that is incurred during the relevant financial year.

Part B (and its subsections)

Part B-TI: Computation of Total Income

Part B-TTI: Computation of Tax liability of the Total Income.

SchedulesPurpose
Bank account details
Schedule –HPFor computing incomes under the head Income from House Property
Schedule –BPFor computing incomes under the head “profit and gains from business and profession
Schedule –DPMFor calculating depreciation on plant & machinery
Schedule –DOAFor a summary of depreciation on all assets
Schedule –DCGFor calculating the deemed capital gain on sale of depreciable assets
Schedule –ESRDeductions u/s 35, i.e. expenditure on scientific research
Schedule –CGFor calculating income under the head “Capital gains”
Schedule –OSFor calculating income from other sources
Schedule –CYLACalculating the income after setting off the current year’s loss
Schedule –BFLACalculation of income after setting off the unabsorbed loss of the previous year
Schedule –CFLStatement of loss for carrying forward to a further year
Schedule –UDStatements of unabsorbed depreciation and allowance
Schedule –ICDSIncome computation disclosure standards on profit
Schedule –10AADeductions u/s 10AA
Schedule –80GDetails of deduction u/s 80G relating to donations
Schedule –80 GGAStatement of donations for scientific research and rural development
Schedule –VIAStatement of deductions from total income under chapter VI-A
Schedule –SIDetails of income chargeable at special tax rates
Schedule –PTIDetails relating to passing through income from business trust or investment fund
Schedule –EIStatement of exempted incomes
Schedule –MATDetails of tax payable u/s 115JB (Minimum Alternate Tax)
Schedule –DDTstatement of tax paid on dividend, i.e. “dividend distribution tax”
Schedule –BBSDetails of tax distributed income on buyback of shares
Schedule –ESIStatement of foreign incomes and tax relief thereto
Schedule –ITDetails on advance-tax paid and self-assessment tax
Schedule –TDSDetails of TDS on incomes other than salaries
Schedule –TCSStatement of TCS (Tax collected at source)
Schedule –FSIStatement of income accruing outside India
Schedule –TRDetails of tax relief claimed for foreign tax paid
Schedule –FAComplete details of foreign assets and foreign income
Schedule –SH1Details of shareholding of an unlisted company
Schedule –SH2Details of shareholding of start-ups
Schedule –AL1Statement of assets and liabilities at the end of the year
Schedule –GSTStatement of turnover reported for GST
Schedule –FDDetails of payment/receipt made in foreign currency
  • When accounts are subject to audit under the Income-Tax Act: October 31st of the assessment year.
  • When reporting in Form No. 3CEB is required: November 30th of the assessment year.
  • In all other cases (where accounts do not require auditing): July 31st of the assessment year.

When filling out the ITR-6 Form, it is recommended to follow the sequence provided by the Income Tax Department for a systematic and error-free Form 6 income tax filing process:

  • Part A
  • Schedules
  • Part B
  • Verification

Following this sequence ensures that you provide the information organizationally, making it easier to complete your income tax return accurately and efficiently.

No annexure or documents, including TDS certificates, must be attached to the ITR-6 return form during filing. Taxpayers are advised to reconcile the taxes deducted, collected, or paid on their behalf by comparing them with their Tax Credit Statement Form 26AS.

ITR-7 Return Filing

ITR-7 is a specialized income tax return form designed for specific entities like firms, companies, local authorities, associations of persons (AOPs), and artificial judicial persons claiming exemptions under various sections of the Income Tax Act. Filing ITR-7 can be a complex process, but with DigiQore, you can navigate it effortlessly. Our expert team streamlines the ITR-7 filing process, ensuring compliance and accuracy.

Get Started with IndiaFilings and file your ITR-7 with ease.

What is the ITR 7 Form?

ITR-7 Form is specifically designed for firms, companies, local authorities, associations of persons (AOPs), and artificial judicial persons who wish to file their Income Tax Returns. It applies to those claiming exemptions in the following categories:

  • Under Section 139(4A): Charitable or Religious Trusts
  • Under Section 139(4B): Political Parties
  • Under Section 139(4C): Scientific Research Institutions
  • Under Section 139(4D): Universities, Colleges, Institutions, or Khadi and Village Industries

Who Cannot File the ITR 7 Form Online?

Individuals not seeking exemptions under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) are not required to file the ITR-7 Form for Income Tax Returns.

Who is Eligible to File the ITR-7 Form?

The ITR-7 Form applies to individuals receiving income from various sources:

  • Section 139(4A): Those with income from property held under trust or legal obligations for charitable or religious purposes.
  • Section 139(4B): Political parties with income exceeding the non-taxable limit.
  • Section 139(4C): Organizations such as scientific research associations, hospitals, educational institutions, universities, and news agencies.
  • Section 139(4D): Colleges and universities are not mandated to file returns otherwise.
  • Section 139(4E) and Section 139(4F): Business trusts and investment funds with no obligation to file under other provisions.

Any taxpayer who falls under the categories of Trust, Company, Firm, Local Authority, Association of Persons (AOP), or Artificial Judicial Person and claims exemptions as per Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D) can utilize the ITR-7 Form for filing Income Tax Returns.

What is the Deadline for Filing ITR 7 Form?

The due date for filing the ITR7 Form varies depending on whether the accounts require auditing. Individuals not subject to audit can file by July 31, 2024, for AY 2023-24, while audit cases have a deadline of October 31, 2024.

Note: The filing date for Form ITR7 for the Assessment Year 2023-24 for assesses is detailed in clause (a) of Explanation 2 to sub-section (1). The original deadline of Section 139 of the Act, which was October 31, 204, has been extended until November 30, 2024.

Structure of ITR 7 income tax form

The ITR 7 income tax 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 income tax form

What is the sequence for filing ITR 7 income tax 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.

The Procedure to file ITR 7 returns

ITR 7 income tax filing can be done with the Income tax department in the following ways:

  • By furnishing the returns in the electronic manner using the digital signature certificate
  • By transmitting the data in the return and thereafter submitting the verification of the return in the ITR V Return Form

After filing the return the assessee is required to print the copies of the ITR V Form. A copy of the ITR V which is duly signed by the assessee has to be sent by the ordinary post to

Bag No.1, Electronic City Office, Bengaluru – 560100 ( Karnataka)

The other copy can be retained by the assessee for his record.

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.