ITR-7 Form Filing for AY 2024-2025

The CBDT has notified the ITR-7 form for the assessment year 2024-2025, which applies to the financial year 2023-2024. The ITR-7 form is specifically designed for companies that earn income from properties used for charitable or religious purposes. This includes properties held under trusts or legal obligations, whether in part or whole. This article covers the eligibility criteria, the procedure to file the ITR-7 form and the changes made in the ITR-7 form for AY 2024-2025.

Assessment Year for which this Return Form is applicable

The ITR-7 form is applicable for the assessment year 2024-2025. This means it is specifically designed for taxpayers to report their income earned during the financial year 2023-2024.

The ITR-7 form should be used by companies that generate income from properties used for charitable or religious purposes, including properties held under trusts or legal obligations.
Selecting the correct assessment year when filing the income tax return using the ITR-7 form is essential.

Eligibility Criteria to File ITR-7

The eligibility criteria to file ITR-7 for the Assessment Year 2023-2024 are as follows: TR-7 for AY 2023-2024 is to be filed by persons, including companies, who are required to furnish returns under the following section:

Section 139(4A) of the Income-tax Act: Individuals or Hindu Undivided Families (HUFs) who are trustees of properties held under a trust or legal obligation for charitable or religious purposes.
Section 139(4B) of the Income-tax Act: Political parties that are required to furnish income tax returns under Section 139(4B) of the Income-tax Act.
Section 139(4C) of the Income-tax Act: Institutions or associations that are required to furnish income tax returns under Section 139(4C) of the Income-tax Act. This includes scientific research associations, news agencies, associations or institutions providing medical, educational, or similar services, and certain universities or educational institutions.
Section 139(4D) of the Income-tax Act: Colleges or institutions that must furnish income tax returns under Section 139(4D) of the Income-tax Act. This refers to colleges or institutions other than those mentioned in Section 139(4C), which are not required to get their accounts audited.

Note: It's important to note that a charitable company incorporated under Section 25 of the Companies Act, 1956, or Section 8 of the Companies Act, 2013, should use ITR-7 and not ITR-6 for filing their income tax returns.

Who is Not Eligible to File ITR 7 Form Online?

Taxpayers who are not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C), or Section 139 (4D) are not required to file ITR-7.

The ITR-7 form is specifically for taxpayers falling under these exemption categories.
Taxpayers not fall under these categories are not eligible to file the ITR-7 form.

No Documents Required

No supporting documents are required to be attached while filing the ITR-7 form. Taxpayers are advised to reconcile the taxes deducted or collected on their behalf with the information provided in their Tax Credit Statement, known as Form 26AS. It is essential to ensure that the tax credits mentioned in Form 26AS match the taxpayer's records before filing the ITR-7 form.

Due Date for Filing ITR 7 Form

The last date for filing the ITR-7 form varies based on the audit requirements of the accounts. The due date for filing the ITR-7 form without audit is typically July 31 of the assessment year. However, if the taxpayer's accounts require auditing, the due date for filing the ITR-7 form is extended to September 30 of the assessment year. Taxpayers need to be aware of the applicable due date and ensure the timely filing of the ITR-7 form to avoid any penalties or consequences.

Procedure for filing ITR-7 for AY 2024-2025

To file the ITR-7 for Assessment Year 2023-2024, follow the procedure below:

Electronic Filing

Filing the ITR-7 form electronically involves several crucial steps. Here's a detailed breakdown to guide you through the process:

Part A - General Information: This section is fairly straightforward. Enter the entity's name, PAN, registered address, contact details, and other basic information as per your registration documents.
Part B - Computation of Total Income: This section requires calculating the entity's gross total income from various sources (business, profession, house property, etc.). You'll then deduct allowable expenses and claim exemptions to arrive at the taxable income. Refer to the official instructions for guidance
Schedules: ITR-7 includes various schedules for reporting specific income sources and claiming exemptions. Here's a breakdown of some crucial schedules:
- Schedule OS: Report income from a specified business or profession (if applicable).
- Schedule BP: Detail income from a business or profession carried on by the entity.
- Schedule HP: Report income derived from house property owned by the entity.
- Schedule EI: Report income from other sources, such as interest income, dividend income, etc.
- Additional Schedules: Depending on the nature of your entity's activities, you might need to fill additional schedules like Schedule SI for income from scientific research, Schedule F for income from agriculture, etc.

Important Note: Carefully review the Income Tax Department's instructions to determine which schedules are relevant to your entity and ensure accurate reporting in each section.

Here is the ITR-7 form AY 2024-2025 for your reference,

Uploading & Verification

Upload ITR-7 and Supporting Documents: Once you've completed the ITR-7 form, upload it electronically on the e-filing portal. You'll also need to upload scanned copies of all supporting documents in the designated format.
Verification: The final step involves verifying the uploaded information. You can choose one of the following methods for verification:
- Digital Signature Certificate (DSC): If your entity possesses a DSC, you can use it for a digital signature, providing the highest level of security.
- Electronic Verification Code (EVC): This method involves the Income Tax Department sending a one-time password (OTP) to your registered mobile number or email address for verification.
- Aadhaar OTP: If you have linked your Aadhaar card with your PAN, you can utilize the Aadhaar OTP method for verification
Form ITR-V: After successful verification, you'll receive an acknowledgement form (ITR-V) with a Document Identification Number (DIN). You can download and print the ITR-V for your records.

Audit Reports

If applicable, electronically file audit reports under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 12A(1)(b), 92E before filing the income tax return.

ITR-V Submission

After filing the ITR-7 form Print Form ITR-V. Send the signed ITR-V to the Processing Centre, Income Tax Department, Bengaluru- 560500 (Karnataka) via ordinary post or speed post. Ensure the ITR-V reaches the center within 120 days of the e-filing date.

Receipt Confirmation

The confirmation of ITR-V receipt at the Centralized Processing Centre will be sent to the registered e-mail ID associated with the e-Filing account. It is essential to follow these steps accurately and within the specified timelines to complete the filing process for ITR-7.

Changes made in the ITR-7 for AY 2024-2025

The Income Tax Department periodically updates the ITR forms to reflect changes in tax laws and reporting requirements. The following are some of the key changes introduced in the ITR-7 form for the Assessment Year (AY) 2024-2025:

Legal Entity Identifier (LEI): Entities with an LEI may be required to furnish it in the ITR-7 form. This applies to transactions exceeding Rs. 50 crores (as per RBI regulations).
Audit Report Acknowledgement and UDIN: Entities undergoing tax audits must provide the acknowledgement number of the audit report filed in Form 10B/10BB along with the Unique Document Identification Number (UDIN). It's important to note that there might be a discrepancy between the ITR filing deadline and UDIN generation timeframe as per ICAI guidelines.
Schedule J: Reporting details regarding applications made from corpus and loan repayments during the year. The new focus is on applications made after April 1, 2021.
Schedule VC: A new column to report anonymous donations not taxable under Section 115BBC (exemption applies when exceeding Rs. 1 lakh or 5% of total donations).
Schedule A: Disclosing details of donations made to other registered/approved trusts or institutions, including the percentage considered as application of income (reduced to 85% by the Finance Act 2023).
Computation of Income Details: New reasoning options have been added in Part A-GEN for claiming benefits under the twenty-second proviso to Section 10(23C) or Section 13(10).
Schedule IE-1 Extension: This schedule, used for reporting income and expenditure statements, now applies to entities with income exempt under Sections 10(46A) and 10(46B) (introduced by Finance Act 2023). However, there might be a discrepancy between the legal requirement to file and the current ITR-7 obligation due to a lack of consequential amendments.
Schedule IE-1 Omission: The reference to Section 10(22B) (exemption for news agencies) has been removed due to its omission in the Finance Act 2023.
Form 10 Filing Details (Part B-TI): When accumulating income under Sections 11(2) and 11(5) or the third proviso to Section 10(23C), the ITR-7 now requires reporting whether Form 10 was filed with the Assessing Officer and the filing date (if applicable).
Residuary Clause (Part B-TI): A new column has been added to report any other income not exempt under the Income Tax Act.