Finally after the availability of ITR 1 to 6. Now ITR 7 is also available on E-filing website (E-filing 2.0) for people to file their Income tax return.
In today’s post let’s discuss about ITR 7, various amendment made in ITR 7 for AY 2021-22 and who are eligible for filing the same.
Let’s first see who is eligible to use ITR 7 Form?
This Return Form can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).
The category of persons whose income is unconditionally exempt under various clauses of section 10, and who are not mandatorily required to furnish their return of income under the provisions of section 139, may use this form for filing return. An indicative list of such persons is given below:-
||Category of persons
||Exempt under section
||Regimental Fund or Non-public Fund established by the Armed forces of the Union
||Fund, by whatever name called, set up by the Life lnsurance Corporation (LIC) of India on or after 1st August, 1996, or by any other insurer
||Authority (whether known as the Khadi and Village Industries Board or by any other name)
||Body or Authority
||SAARC Fund for Projects set up by Regional Colombo Declaration
||Insurance Regulatory and Development Authority (IRDA)
||Central Electricity Regulatory Commission
||Prime Minister’s National Relief Fund
||Prime Minister’s Fund (Promotion of Folk Art)
||Prime Minister’s Aid to Students Fund
||National Foundation for Communal Harmony
||Swachh Bharat Kosh
||Clean Ganga Fund
||Provident fund to which the Provident Funds Act,1925 applies
||Recognized Provident Fund
||Approved Superannuation Funds
||Approved Gratuity Fund
||Other funds referred to in sub-clause (v) of section 10(25)
||Employees’ State Insurance Fund
||Agricultural Produce Marketing Committee
||Corporation, body, institution or association established for promoting interests of members of Scheduled Castes or Scheduled Tribes or backward Classes
||Corporation established for promoting interests of members of a minority community
||Corporation established for welfare and economic upliftment of ex-servicemen
||New Pension System (NPS) Trust
Key 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 head “other sources” has been bifurcated into 2 parts as “Dividend income” and “Other than dividend income”
In schedule OS,
(i) The existing drop related to “Dividend income” is bifurcated into 2 parts i.e “Dividend income [other than (ii)]” and “Dividend income u/s 2(22)(e)”
(ii) Dividend will now be taxable from Rs.1/- as the section 115BBDA is omitted. Accordingly, Interest expenditure u/s 57(1) to earn Dividend can be claimed at sl.no.3
(iii) The existing drop down at Sl. No. 2d “115AD(1)(i)- Income received by an FII in respect of securities (other than units referred to in section115AB)” bifurcated into 2 drop downs as under:-
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%
(iv) Further new drop downs are inserted in sl. No. 2d and Sl. No. 2e wrt “Interest referred to in section 194LC(1)” and Distributed income being Dividend referred to in section 194LBA
(v) Section 115BBDA is removed from AY 2021-22 onwards hence corresponding drop downs are removed from sl. No. 2d and 2e of schedule OS
(vi) In existing Sl. No. 10 “Information about accrual/receipt of income from Other Sources”
Field “Dividend Income u/s 115BBDA” is changed to “Dividend income” due to finance Act changes
one more line item is inserted to capture the quarter wise break up of dividend income which is taxable at DTAA Rates. This information will be used to calculate interest u/s 234C.
In Schedule TDS , earlier TDS credit is allowed only if corresponding income is being offered for tax this year, however exception is being added for TDS u/s 194N. Also, the label is amended to include form 16D for the claim of TDS
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