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Documents Required for :
ITR-7 Return Registration

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ITR-7 Return Registration in India

The ITR-7 form is a specific income tax return form designated for certain entities such as trusts, political parties, colleges, or institutions that claim an exemption under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act, 1961. This form must be filed by organizations that do not fall under the ambit of personal, company, or business income returns but still have obligations to report their financial activities to the Income Tax Department of India.

Who Should File ITR-7?

Entities required to file ITR-7 include:

  • Trusts and Religious Institutions: Those seeking exemption under Section 139(4A)
  • Political Parties: Those claiming exemption under Section 139(4B).
  • Scientific Research Institutions: As per Section 139(4C)
  • Universities, Colleges, and Other Educational Institutions: Under Section 139(4D)

Key Sections for ITR-7 Filing

  • Section 139(4A): For charitable or religious trusts.
  • Section 139(4B): For political parties.
  • Section 139(4C): For certain specified entities such as scientific research associations, news agencies, etc.
  • Section 139(4D): For universities and educational institutions.

Components of ITR-7

  • Part A - General Information: Basic details such as name, address, PAN, etc.
  • Part B - Outline of Total Income and Tax Computation: Details of income and calculation of tax liability.
  • Schedules: Various schedules like Schedule I, Schedule J, Schedule K, and so on, detailing income, expenditures, and other specifics.
  • Verification: Declaration affirming the accuracy of the information provided

Steps to File ITR-7

  • Collect Required Documents: Gather all necessary documents such as financial statements, donation receipts, bank statements, etc.
  • Login to Income Tax Portal: Access the e-filing portal of the Income Tax Department.
  • Select ITR-7 Form: Choose the ITR-7 form from the available options.
  • Fill in the Details: Complete all parts and schedules with accurate information.
  • Verify and Submit: Verify the form details and submit it online. E-verify using options like Aadhaar OTP, EVC, or Digital Signature Certificate.

Benefits of Filing ITR-7 Returns

Legal Compliance

Filing ITR-7 ensures that your entity complies with the legal requirements set forth by the Income Tax Act, 1961. This helps in avoiding penalties, fines, and other legal repercussions associated with non-compliance.

Tax Exemptions

Entities like charitable trusts, religious institutions, and political parties can claim tax exemptions under specific sections (139(4A), 139(4B), etc.) of the Income Tax Act. Filing ITR-7 accurately enables these entities to avail of these exemptions.

Financial Transparency

Filing ITR-7 promotes financial transparency by providing a clear record of income, expenses, donations, and other financial activities. This is crucial for maintaining trust with donors, members, and other stakeholders.

Credibility and Trust

Regular and accurate filing of ITR-7 enhances the credibility of the organization. Donors and funding agencies are more likely to support entities that are compliant with legal requirements and transparent in their financial dealings.

Access to Government Benefits

Entities that regularly file their ITR-7 returns may be eligible for various government grants, aid, and other benefits. Filing returns on time ensures that the entity can take advantage of these opportunities.

Audit Readiness

Maintaining regular filings helps in being prepared for audits by the Income Tax Department. Proper documentation and filing reduce the risk of discrepancies during audits and ensure smooth audit processes

Avoidance of Penalties

Non-filing or late filing of ITR-7 can attract penalties and interest. Timely and accurate filing helps in avoiding these additional costs, ensuring better financial management for the entity.

Financial Planning and Analysis

Filing ITR-7 provides a detailed overview of the financial status of the entity. This information is crucial for effective financial planning, budgeting, and analysis, helping the entity in making informed decisions.

Improved Governance

Regular filing of ITR-7 contributes to better governance practices within the organization. It ensures that the entity's financial activities are properly monitored and reported, fostering a culture of accountability and integrity.

Enhanced Reputation

Entities that are compliant with tax laws and maintain transparency in their financial dealings enjoy an enhanced reputation in the eyes of the public, donors, and regulatory bodies. This can lead to increased support and recognition.

Why Choose Filinglounge for ITR-7 Filing?

Filinglounge offers expert assistance in filing ITR-7, ensuring that your return is accurate, compliant, and submitted on time. Our services include

  • Professional Guidance: Expert advice tailored to your organization’s specific needs
  • Comprehensive Support: End-to-end support from document collection to submission and verification.
  • Accurate Filing: Precise and error-free filing to avoid penalties and ensure smooth processing.
  • Timely Service: Prompt and efficient handling of your ITR-7 filing needs

Related Guides

Documents Required For ITR-7

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

ITR-7 FAQ's

What is ITR-7?

ITR-7 is an income tax return form used by entities such as trusts, political parties, and educational institutions that claim an exemption under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act, 1961

Who should file ITR-7?

Entities required to file ITR-7 include:
  • Charitable or religious trusts (Section 139(4A))
  • Political parties (Section 139(4B))
  • Scientific research institutions and news agencies (Section 139(4C))
  • Universities, colleges, and other educational institutions (Section 139(4D))

What documents are required for filing ITR-7?

The documents required for filing ITR-7 include:
  • Financial statements (balance sheet, income and expenditure statement)
  • Donation receipts
  • Bank statements
  • Details of any income received
  • Records of expenses incurred

How do I file ITR-7?

To file ITR-7:
  • Gather all necessary documents.
  • Log in to the Income Tax e-filing portal.
  • Select the ITR-7 form
  • Fill in the details in the appropriate sections and schedules
  • Verify and submit the form online.
  • E-verify using Aadhaar OTP, EVC, or Digital Signature Certificate.

What is the due date for filing ITR-7?

The due date for filing ITR-7 is typically July 31st of the assessment year for entities not requiring an audit. For entities requiring an audit, the due date is usually October 31st of the assessment year.

Can I revise my ITR-7 after filing?

Yes, you can revise your ITR-7 return if you discover any errors or omissions after filing. The revised return must be filed before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

What happens if I don't file ITR-7 on time?

Failing to file ITR-7 on time can result in penalties, interest on tax due, and the loss of eligibility for certain tax exemptions and benefits. It is important to file your return before the due date to avoid these consequences.

Can ITR-7 be filed offline?

No, ITR-7 must be filed electronically on the Income Tax Department's e-filing portal. Manual or offline filing is not permitted.

Do I need to get my accounts audited for filing ITR-7?

Entities filing ITR-7 under sections 139(4A) or 139(4B) are generally required to have their accounts audited if their income exceeds the basic exemption limit. The audit report should be submitted along with the ITR-7 return.What are the benefits of filing ITR-7?

What are the benefits of filing ITR-7?

Benefits of filing ITR-7 include:
  • Legal compliance
  • Tax exemptions
  • Financial transparency
  • Enhanced credibility and trust
  • Access to government benefits
  • Audit readiness
  • Avoidance of penalties
  • Improved financial planning and analysis
  • Better governance
  • Enhanced reputation

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.