ITR 7 is now available for filing on e-filing 2.0 | What are the changes in ITR 7 for AY 2021-22 | File ITR 7 online with experts on Taxontips

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:-

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 lnsurance 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 Projects set up by Regional 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 section 10(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 Scheduled Castes or Scheduled Tribes or backward Classes	Section 10(26B)
24	Corporation established for promoting interests of members of a minority community	Section 10(26BB)
25	Corporation established for welfare and economic upliftment of ex-servicemen	Section 10(26BBB)
26	New Pension System (NPS) Trust	Section 10(44)

 

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

 

To book Chartered Accountant for filing ITR 7 CLICK HERE. For other ITR choose below mentioned links.

 

You can book phone consultation/ assistance online with expert as mentioned below: