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Filing of Income Tax Return - 7

9450* Basic Package

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Overview

Income Tax return Form 7 is a form for the assessee those who must file the ITR under the subsections of Section 139 of Income Tax Act. The assessee could be an individual, partner, Hindu undivided family, or any entity. All the taxpayers identified under the subsections of Income Tax Act must compute their income tax returns, or else they will be liable to pay penalties.

Entities those are eligible to file ITR Form-7

Following are the entities that can file ITR form 7:

1. Filing ITR 7 under section 139(4A)

Under section 139(4A), any individual who has income from properties that are completely or partially used for a charitable or religious organization must file ITR form7. To File ITR form 7, all such poperies should also be registered as a trust.

2. ITR Form 7 Under section 139(4B)

Section 139(4B) is only for the political parties. The political parties Exempt from taxation under section 13A, only if they file their returns using ITR 7.  

3. ITR Form 7 under section 139(4C):

Under section 139 (4C), only the following entities can file ITR using ITR-7. 

1) If any association is conducting a scientific research

2) The news agencies

3) All the associations that are registered under section 10 (23A)

4. ITR Form 7 under section 139(4D):

It is for the schools, colleges, or institutions that do not come under any section of Income Tax Act. They must file their ITR using the ITR form 7.

5. ITR Form 7 under section 139(4E):

Under section 139 (4E), the business trusts can file their return using ITR form 7. 

6. ITR Form 7 under section 139(4F):

Under section 139(4F), any entities having income from Investment funds will file their return using ITR Form 7. 

Due Dates for filing ITR form 7

As per the IT Act, 1961, all the entities that are eligible to file ITR form 7 under sub Sections of Section 139 must file their annual return on or before 31st August. If you fail to file your ITR 7 form within the due date, you will be liable to pay the penalty. 

Important Note:

Income Tax department has extended the dates for filing returns to 30th November. It is done as a relief measure for the Covid-19 pandemic. Thus all the entities can now file their returns using ITR forms. 

Penalties for filing ITR- 7 late:

As per the provisions made under the Income Tax Act, if any entity fails to file their returns within the dates, they will be liable to pay penalty up to INR 10,000. These penalties shall keep on adding till you file your returns. 

Drawbacks of late filling:

1.No interest on refunds

Filing the ITR late will make you lose your interest on refunds that you have paid as advance tax

2.Interest on unpaid tax

If you file ITR late, you shall be held liable to pay interest on the unpaid tax amount. You have to pay interest 1% for the unpaid tax. And this interest would be calculated separately from the penalties.

3.No carry forward of losses

If you file your ITR late, then no losses will carry forward to the next financial year, except the loss made in house property. 

Advantages

1. ITR receipt is a precious document

When you file your income tax returns, the income tax department provides you a receipt in return. This receipt is a precious document. It contains more detailed data as compared to Form 16. Thus, filing your income tax returns helps you record all your taxations with revenue from different sources.

2. ITR receipt serves as address proof

When an individual files his/her income tax returns, the IT department sends the receipt to the registered address of the person/ entity. Thus, it serves you as your residential proof. You can show it as your proof of address in organizations like banks and NBFCs. 

3. Easy processing of bank loans

Filing your income tax returns offers you various benefits to avail loans. One such is easy processing of bank loans. When you apply for a bank loan, the bank will verify your eligibility. Thus, filing income tax returns makes it easier for you to avail any loan. The returns act as a strong document. It shows the poof of income to the loan provider. 

Whether it is a house credit, personal mortgage, or vehicle loan, you can show provide the copies of your ITR statements for easy processing of the bank loans.

4. Compensation of the losses in the next financial year

Until you file your income tax returns, you cannot compensate for your losses to the next financial year. According to the IT Act, if you do not file your income tax returns on time, your losses will not be adjusted. You cannot compensate losses for the next financial year. Thus, to ensure that you compensate your losses, you must file your Income-tax returns on time. 

5. Avoid extra interests

If you don’t file your income tax returns on time, you will be liable to pay extra interest 1% on the tax as a penalty. This penalty shall keep on adding until you file your returns. For example, a bank deducts taxes at source from the interest of the fixed deposit. In order to claim the refund of the TDS, you must file your taxable income. In case you don’t file your returns then you have to pay extra interest on the deposits, 

6. Avoid penalties

As per the IT Act, if an individual doesn’t file income tax returns on time, he/she will be held liable to pay the penalty up to INR10, 000. and this penalty shall keep on adding until you file your returns.

7. Easy credit card processing

When you apply for credit cards, the banks usually verify your income tax returns. So, if you don’t file your income tax returns, the bank may reject your credit card application. 

8. Hassle-free visa processing 

Sometimes the Visa Authorities may ask you the documents of your past tax returns. Thus, if you are applying for Visa, you must file your income tax returns on time. Filing the IT will eliminate all the hassles in Visa applications. You can get a Visa easily. 

9. Helpful for the freelancers and independent professionals 

The individuals who are independent professionals or freelancers don’t have form 16. Thus it might get difficult for them to avail of any financial benefits. Income tax returns are the only document that shows the proof of income for them. Thus, if you are freelancers or independent professional, you must file you ITR without wasting time. It will eliminate the funding issues and transactional problems.

Disadvantages

1. Interest loss on refunds: 

When you file for a refund in your tax returns that you paid in advance, you will lose some interest in filing your ITR late

2. Losses will not carry forward: 

If you file ITR-7 after the due dates, your losses will not be carried forward except house property losses.

3. Penalties: 

Filing the ITR late also results in a penalty of interest 1% per month. The penalty starts from the due date and continues until you make the payment.

Document Required

  • Aadhar card
  • Pan card
  • A financial statement that includes the balance sheet, profit and loss account
  • Annual report 
  • Auditor report 

Time Lines

  • (3 to 5 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with department
  • Receipt of Acknowledgement
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

9450*
  • Expert Consultation
  • Return filing for a taxpayer with taxable income of less than Rs.10 lakhs.

Business

12450*
  • Expert Consultation
  • Return filing for a taxpayer with taxable income of more than Rs.10 lakhs.

Enterprise

14950*
  • Expert Consultation
  • Return filing for a taxpayer with taxable income of more than Rs.25 lakhs.
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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