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ITR 7 Form – FY 2020-21 / AY 2021-22

ITR-7 form is to be used when the tax assessee is a Trust, filing as a Company, Firm, Local authority, Association of Person (AOP) or Artificial Judiciary Person and is claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C) or Section 139 (4D). Income Tax Return (ITR) 7 Form – FY 2020-21 / AY 2021-22.

 

Assessment Year for ITR Form FY 2020-21

This Return Form is applicable for the assessment year 2021‐22 only, i.e., it relates to income earned in Financial Year 2020‐21.

 

Who is Eligible to File ITR-7 for FY 2020-21/ AY 2021-22?

• This Return Form can be used by persons, including companies who are required to furnish return under section139(4A) orsection139(4B) of section139(4C) or section 139(4D).
• The category of persons whose income is unconditionally exempt under various clauses of section 10 and who is not mandatorily required to furnish their income return under section 139 may use this form for filing return. An indicative list of such persons is given below: ‐

Sl.no	Category of persons	Exempt under section
1	Local authority	Section 10(20)
2	Regimental Fund or Non‐public Fund established by the Armed forces of the Union	Section 10(23AA)
3	Fund, by whatever name called, set up by the Life insurance Corporation (LIC) of India on or after 1st August 1996, or by any other insurer	Section 10(23AAB)
4	Authority (whether known as the Khadi and Village Industries Board or by any other name)	Section 10(23BB)
5	Body or Authority	Section 10(23BBA)
6	SAARC Fund for Regional Projects set up by Colombo Declaration	Section 10(23BBC)
7	insurance Regulatory and development authority (IRDA)	Section 10(23BBE)
8	Central Electricity Regulatory Commission	Section 10(23BBG)
9	Prasar Bharati	Section 10(23BBH)
10	Prime Minister’s National Relief Fund	Section 10(23C)(i)
11	Prime Minister’s Fund (Promotion of Folk Art)	Section 10(23C)(ii)
12	Prime Minister’s Aid to Students Fund	Section 10(23C)(iii)
13	National Foundation for Communal Harmony	Section 10(23C)(iiia)
14	Swachh Bharat Kosh	Section 10(23C)(iiiaa)
15	Clean Ganga Fund	Section 10(23C)(iiiaaa)
16	Provident fund to which the Provident Funds Act,1925 applies	Section 10(25)(i)
17	Recognized Provident Fund	Section 10(25)(ii)
18	Approved Superannuation Funds	Section 10(25)(iii)
19	Approved Gratuity Fund	Section 10(25)(iv)
20	Other funds referred to in sub‐clause (v) of section10(25)	Section 10(25)(v)
21	Employees’ State Insurance Fund	Section 10(25A)
22	Agricultural Produce Marketing Committee	Section 10(26AAB)
23	Corporation, body, institution, or association established for promoting interests of members of ScheduledCastesorScheduledTribesorbackward Classes	Section 10(26B)
24	Corporations are established for promoting the interests of members of a minority community.	Section 10(26BB)
25	Corporations were established for the welfare and economic upliftment of ex‐servicemen.	Section 10(26BBB)
26	New Pension System (NPS) Trust	Section 10(44)

 

 

Fundamental changes (as compared to ITR for AY 2020‐21)

• In Part A General ‐ Details of registration or approval under Income Tax Act (Mandatory if required to be registered) ‐ Section 12AB has been inserted in the dropdown (Application for registration is made as per new provisions)
• In schedule, BP, Income/ receipts credited to profit and loss account considered under the head “other sources” has been bifurcated into 2 parts as “Dividend income” and “Other than dividend income.”
• 115AD(1)(i)‐ Income being Dividend received by an FII in respect of securities (other than units referred to in section115AB) @20%
• 115AD(1)(i)‐ Income being other than dividend income received by an FII in respect of securities (other than units referred to in section115AB) @20%. Income Tax Return (ITR) 7 Form – FY 2020-21 / AY 2021-22.

 

What is the period covered during FY 2020-21 / AY 20201-22?

FY 2020-21 is the financial year 2020-21 starting from April 1, 2020, ending on March 31, 2021. AY 2021-22 is the assessment year 2021-22, relevant to the financial year 2020-21 (also called the previous year 2020-21).

 

Who should not file ITR 7?

The following taxpayers cannot fill ITR-7: individuals, Companies, and HUFs. Those entities who have filed the return through new ITR-5 and ITR-6.

 

Who should mandatorily file Income Tax returns?

• This form can be used a person being a firm, LLPs, AOP, BOI; an artificial juridical person referred to in section 2(31)(vii), the estate of deceased, the estate of insolvent, business trust and investment fund, cooperative society, and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.

 

FAQ’S

Can ITR 7 be filed without a digital signature?

While verifying ITR Form 7, the political parties are compulsorily required to verify the return through a digital signature certificate(DSC) by the CEO or secretary. In contrast, other forms of persons have the following options for verifying return: Through DSC(digital signature certificate).

 

How can I check my ITR 7?

• Verification of Form ITR-7.
• Through DSC (Digital Signature Certificate)
• Authenticating by way of Electronic Verification Code (EVC) mode.
• Duly signing the ITR-V acknowledgment and posting it to the CPC office.

 

Who is required to furnish a return of income?

Under Section 139(1), in the following cases, the filing of Income Tax Return is Mandatory: Every person who has a total income that exceeds the exemption limit is liable to furnish Income Tax Return within the due date. Any private, public, domestic, or foreign country located and/or doing business in India. Income Tax Return (ITR) 7 Form – FY 2020-21 / AY 2021-22.