ITR-7 Return Filing

ITR-7

The Income Tax Act, 1961, levies tax on income of entities earned in a specific financial year. The person liable to pay income tax hereinafter referred to as “assessee” could be an individual, partnership, Hindu Undivided Family, or any other business entity.

Taxpayers have been categorized in the Act to make tax compliances easy for everyone. Taxpayers shall compute income tax liability based on methods and conditions laid down in Income Tax Act, 1961. Apart from the category of taxpayer and methods for filling ITR, forms used for filing income tax return also vary as per the assessee filing the ITR. This article covers comprehensive information on ITR-7

Eligible entities to file ITR-7

Ø . ITR-7 u/s 139(4A)

Those persons whose income is from property used either solely or partially for charitable or religious trust and such property must be held under a legal obligation or trust.

Ø . ITR-7 u/s 139(4B)

This section specifically applies to political parties. As per section 13A political parties are exempted from filing income tax return provided they file the annual return through form ITR-7.

Ø . ITR-7 u/s 139(4C)

Under this, ITR-7 is filed by following entities:

Association conducting scientific research
News agency
Association u/s 10(23A)
Other institutes enlisted u/s 10(23B)

Ø ITR-7 u/s 139(4D)

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

Ø ITR-7 u/s 139(4E)

Filing of Return of Income by a business trust

Ø ITR-7 u/s 139(4F)

Filing of Return of Income by Investment Fund

INCOME TAX NOTICE

Income tax notices are sent by the Income Tax Department for various reasons like not filing income tax return, defect in filing of tax return or other instances where the tax department requires additional information or documents. On receiving an income tax notice, there is no reason to be alarmed or frightened. However, the taxpayer must take steps to understand understand the nature of notice, the request or order in the notice and take steps to comply.

India filings offers a comprehensive suite of services for families and businesses to help them maintain their tax compliance. In case you receive an income tax notice, get in touch with a Tax Expert at India filings to better understand the income tax notice and determine a course of action. You can send a copy of the tax notice and question to sales@news24views.online. Our Tax Experts can then advice you on the type of notice received and provide support in helping you comply with the tax notice or order.

TYPES OF NOTICE

Notice u/s 143(1) – Intimation

This is one of the most commonly received income tax notice. The income tax department sends this notice seeking a response to the errors/ incorrect claims/ inconsistencies in an income tax return that was filed. If you want to revise the return after receiving this notice, it must be done within 15 days. Else, the tax return will be processed after making necessary adjustments mentioned in the 143(1) tax notice.

Notice u/s 142(1) – Inquiry

This notice is addressed to the assessee when the return is already filed and further details and documents are required from the assessee to complete the process. This notice can also be sent to necessitate a taxpayer to provide additional documents and information.

Notice u/s 139(1) – Defective Return

An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information. If tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days.

Notice u/s 143(2) – Scrutiny

Income tax notice under Section 143(2) is issued if the tax officer was not satisfied with the documents and information that was submitted by the taxpayer. Taxpayers who receive notice under Section 142(2) have been selected for a detailed scrutiny by the Income Tax department and will have to submit additional information.

Notice u/s 156 – Demand Notice

Generally, Income tax notice is issued by the Income Tax Department when any tax, interest, fine or any other sum is owed by the taxpayer. All demand tax notice will stipulate the sum which is outstanding and due from the taxpayer.

SECTION 139(4A)

Any person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contributions referred to in section 2(24)(iia) shall, if the total income in respect of which he is assessable as a representative assessee (the total income being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars, as may be prescribed, within the time allowed under section 139(1).

SECTION 139(4B)

SECTION 139(4C)

The following below mentioned assessees to be filled Form No. ITR-7, if the total income, without giving effect to the provisions of section 10, exceeds the maximum amount not chargeable to tax. Such return shall be filed in the same way as if it were a return required to be furnished under section 139(1).

Ø The assessees required to file return under these provisions are as under:

research association referred to in section 10(21);
news agency referred to in section 10(22B);
association or institution referred to in section 10(23A);
institution referred to in section 10(238); fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to section 10(23C) in sub-clause(via);
Mutual Fund referred to in clause (23D) of section 10;
securitisation trust referred to in clause (23DA) of section 10;
venture capital company or venture capital fund referred to in clause (23FB) of section 10;
trade union association referred to in sub-clause (a) or (b) of section 10(24).
body or authority or Board or Trust or commission (by whatever name called) referred to in clause (46) of section 10;
infrastructure debt fund referred to in clause (47) of section 10;

SECTION 139(4D)

fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to section 10(23C) in sub-clause(via);

SECTION 139(4E)

Any business trust, which is not required to furnish return of income or loss under any other provision of this section, has to furnish the return of its income in respect of its income or loss in every previous year.
All the provisions of the Income-tax Act, 1961 shall apply as if it were a return required to be filed under section 139(1)

Filing of Return of Income by Investment Fund [Section 139(4F)] – Income Tax

SECTION 139(4F)

Any investment fund referred to in section 115UB, which is not required to furnish return of income or loss under any other provision of this section, shall furnish the return of income in respect of income or loss in every previous year.
All the provisions of the Income-tax Act, 1961 shall apply as if it were a return required to be filed under section 139(1)

TDS ON SALARY(FORM 16)

Any person responsible for paying salary is required to deduct tax at source on the amount payable and issue Form 16 to the employees at the end of each financial year. At India Filings, we can help you easily manage your TDS compliance online through our platform. After subscribing to our services, our team of TDS experts will help you file all TDS returns, pay any overdue TDS deposit and issue Form 16 to your employees. India Filings has experience working with large organizations and issuing salary TDS certificates in Form 16 to thousands of employees.

TDS is calculated at the income tax rates prescribed for the financial year in which the payment to employee is made. The person responsible for paying can increase or decrease the amount to be deducted based on any adjustments in previous deficiency or excess deduction. The total amount of TDS each month will be determined by the following elements:

EXEMPTION LIMIT	LEAVE ENCASHMENT	NOTIFIED ALLOWANCES
House rent allowance	Perquisites	Donation by employees u/s 80G
Other deductions	Bonus or Incentives	Estimated Salary

If a person is employed by more than one employer during a financial year, tax will be deducted on the aggregate salary by one of the employers – as chosen by the employee by submitting information in Form 12B. Thus in an employee has more than one employer in a financial year, he/she is required to furnish information in Form 12B to one of the employers. After submission of Form 12B to an employer, it becomes the obligation of the employer to deduct TDS.

DEPOSIT OF TAX

The tax deducted from the employees salary must be deposited by the employer along with an income tax challan ITNS 281 on or before 7th of every month – for the previous month. From 2008, all corporate assessees and assessees subject to tax audit are required to make the TDS payment online through internet banking facility. An assessee can also make payment of taxes from the account of any other person. However, the challan for making payment should clearly indicate the PAN of the assessee whose behalf the payment is made.

FILING OF TDS RETURN

Employers are required to file quarterly TDS returns with the Government providing details of tax deducted from salary. Information about tax deduction from salary under Section 192 is filed in Form 24Q. The employer at the time of filing TDS return would file the following information to the Government.

TAN of the employer
PAN of the employer
PAY of the employee
Details of tax deposited with Government with challan identification number
Amount if any paid to employees without TDS

TDS RETURN FILING AND TDS DUE DATE

TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government’s collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government – quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. However, a proprietorship business and other entities (i.e., Private Limited Company, LLP, etc.,) must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc. India filings can help obtain TAN Registration.

Those entities have TAN Registration must then file TDS returns. TDS returns are due quarterly. India filings can help you file e file your TDS returns online. Our TDS experts can help you compute your TDS payments and e file the TDS return and keep you in compliance with TDS regulations.

DUE DATE FOR TDS FILING

The due date for Payment of TDS deducted is seventh of the next month. For March, it is 30^th April of the next year. The due date for TDS filing is as follows:

QUARTER	PERIOD	THE DUE DATE FOR FILING FORM 27Q
Q1	1st April – 30th June	On or before 31st July
Q2	1st July – 30th September	On or before 31st October
Q3	1st October – 31st December	On or before 31st January
Q4	1st January – 31st March	On or before 31st May

TDS CERTIFICATE

On deducting TDS, the deductor would furnish to the deductee a TDS certificate. The deductee can cross check the tax credit by viewing Valid TDS certificate is the TDS certificate downloaded from TRACES (http://www.tdscpc.gov.in) bearing a 7 digit unique certificate number and TRACES watermark.

All TDS certificates must be preserved by the Deductee. TDS certificates on payments other than salary is issued on quarterly basis and TDS certificate for salary is provided on annual basis. If the TDS certificate is lost, the deductee can request for duplicate TDS certificate.

CLAIMING TDS

TDS credit can be claimed by the deductor. To claim the credit of TDS, the deductee has to mention the details of TDS in his return of income. Deductee should take due care to quote the correct TDS certificate number and TDS details while filing the return of income. If any incorrect detail is provided by the deductee, then tax credit discrepancy will arise at the time of processing the return of income and same can cause problem in processing the return of income.

TDS RETURN FORM

There are different TDS Forms have been set depending on the income of the deductee or the type of deductee who pays the TDS. The different TDS forms are listed below as follows:

S.NO.	FORM	PERIODICITY	PARTICULARS
1	Form 24Q	Quarterly	Quarterly statement for TDS from “Salaries”
2	Form 26Q	Quarterly	Quarterly statement of TDS in respect of all payments other than “Salaries”
3	Form 27Q	Quarterly	Quarterly statement of TDS from interest, dividend or any other sum payments to non-residents
4	Form 27EQ	Quarterly	Quarterly statement of collection of tax at source

TDS Form 24Q

According to Section 192 of the Income Tax Act 1961, an employer deducts TDS while paying salary to an employee. An employer has to file salary TDS return in Form 24Q, which has to be submitted on a quarterly basis. Details of the salary paid to the employees and the TDS deducted from the payment has to be specified in Form 24Q. In other words, Form 24Q is the quarterly statement of the payment made to the employee and the TDS deducted from it by the deductor.

TDS Form 26Q

When a taxpayer pays taxes, the payee deducts TDS on certain occasions. Form 26Q is used to file TDS details on payments made other than salary. The form mentions the total amount that is paid during the quarter and the TDS amount that has been deducted. Form 26Q has to be submitted on a quarterly basis.

Form 27Q

Form 27Q is a TDS Return or Statement containing details of Tax Deducted at Source (TDS) deducted on payments other than salary made to Non-Resident Indian (NRI) and foreigners. Form 27Q is required to furnish on a quarterly basis on or before the due date. Form 27Q contains details of payments made and TDS deducted on payments made to NRI by the deductor.

Form 27EQ

Form 27EQ contains all details pertaining to tax that is collected at source. According to Section 206C of the Income Tax Act 1961, this form must be filed every quarter. The form has to be submitted by both the corporate and government collectors and deductors.