With the opening of E Filing portal For Income Tax Returns for the Ass Year 2013-14, now you can file your Income Tax Return electronically if you are eligible for filing in ITR-7.
Instructions for filling out Form ITR-7
These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to
relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.
1. Assessment Year for which this Return Form is applicable
This Return Form is applicable for assessment year 2013-2014 only i.e., it relates to income earned in Financial Year 2012-13.
2. Who can use this Return Form?
This 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).
3. Annexure-less Return Form
No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. Tax-payers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS). (Please refer to www.incometaxindia.gov.in).
4. Manner of filing this Return Form
This Return Form can be filed with the Income Tax Department in any of the following ways, -
(i) by furnishing the return in a paper form;
(ii) by furnishing the return electronically under digital signature;
(iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in
Return Form ITR-V;
(iv) by furnishing a Bar-coded return.
Where the Return Form is furnished in the manner mentioned at 4(iii), the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bangaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.
From assessment year 2013-14 onwards in case of an assessee claiming relief under section 90, 90A or 91 to
whom Schedule FSI and Schedule TR apply, he has to furnish the return in the manner provided at 4(ii) or 4(iii).
From assessment year 2013-14 onwards in case an assessee who is required to furnish a report of audit under
section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID,
80JJAA, 80LA, 92E or 115JB he shall file the report electronically on or before the date of filing the return of
income. Further, the assessee who is liable to file the above reports electronically shall file the return of income
in the manner provided at 4(ii) or 4(iii).
5. Filling out the acknowledgement
Only one copy of this Return Form is required to be filed. Where the Return Form is furnished in the manner
mentioned at 4(i), the acknowledgement slip attached with this Return Form should be duly filled.
6. Codes for filling this Return Form
(i) Under the heading ‘Filing Status’ in the Return Form the relevant box needs to be checked regarding section
under which the return is being filed on the basis of following
Sl.No. How the return is filed
i. Before the due date as provided under section 139
ii. After the due date under section 139(1) but before the expiry of one year from the end of
relevant assessment year as per section 139(4)
iii Revised Return under section 139(5)
iv In response to notice under section 139 (9) for removal of defects
v. In response to notice under section 142(1)
vi. In response to notice under section 148
vii. In response to notice under section 153A
viii. In response to notice under section 153C
ix. Under section 92CD to give effect to advance pricing agreement entered with the Board
(ii) Under the head Audit Information, if the assessee is liable for Audit u/s 44AB and the accounts have been
audited by an accountant, the details of such audit report along with the date of furnishing it to the department has to be filled. Further, if the assessee is liable to furnish other audit report the section under which audit is required and the Instructions to Form ITR-7 (AY 2013-14)
date of furnishing it to the department (if audit has been carried out under that section) has to be filled. From A.Y. 2013-14 it has become mandatory to furnish audit reports (if the audit has been carried out) under the following sections electronically on or before the date of filing the return of income.
Section under which Audit report is mandatorily to be filed electronically (if the audit has been carried out) on or before the date of filing the return of income
Sl. Section Sl. Section
1. 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via) 7. 80-IC
2. 10A 8. 80-ID
3. 12A(1)(b) 9. 80JJAA
4. 44AB 10. 80LA
5. 80-IA 11. 92E
6. 80-IB 12. 115JB
7. BRIEF SCHEME OF THE LAW- Before filling out the form, you are advised to read the following-
(1) Computation of total income
(a) “Previous year” is the financial year (1st April to the following 31st March) during which the income
in question has been earned. “Assessment Year” is the financial year immediately following the
previous year.
(b) Tax is chargeable on what is called ‘total income’; it has a definite technical meaning.
(c) Total income is to be computed as follows, in the following order:
(i) Classify all items of income under the following heads of income-
(A) “Income from house property”; (B) “Profit and gains from business or profession”; (C)
“Capital gains”; and (D) “Income from other sources”. [There may be no income under one or
more of the heads at (A), (B), (C) and (D)].
(ii) Compute taxable income of the current year (i.e., the previous year) under each head of income
separately in the Schedules which have been structured so as to help you in making these
computations as per provisions of the Income-tax Act. These statutory provisions decide what
is to be included in your income, what you can claim as an expenditure or allowance and how
much, and also what you cannot claim as an expenditure/allowance.
(iii) Set off current year’s head wise loss(es) against current year’s head wise income(s) as per
procedures prescribed by the law. A separate Schedule is provided for such set-off.
(iv) Aggregate the headwise end-results as available after (iii) above; this will give you “gross total
income”.
(v) Deduct from the gross income, amounts exempt under sections 10 and 11, to arrive at gross total
income.
(vi) From gross total income, subtract, as per procedures prescribed by the law, “deductions”
mentioned in Chapter VIA of the Income-tax Act. The result will be the total income. Besides,
calculate agricultural income for rate purposes.
(2) Computation of income-tax, education cess including secondary and higher education cess and interest in
respect of income chargeable to tax.
(a) Compute income-tax payable on the total income. Special rates of tax are applicable to some specified
items. Include agricultural income, as prescribed, for rate purposes, in the tax computation procedure.
(b) In case, the tax liability computed as above is less than 18.5% of book profit, the company is required
to pay minimum alternate tax (MAT) under section 115JB at the rate of 18.5% of the profit. The
excess tax so paid is allowable to be carried forward for credit in the year in which tax liability under
the normal provisions of the Act is more than MAT liability. Such carry-forward is allowable up to 5
years.
(c) Add Education Cess including secondary and higher education cess at the rate of 3% on the tax
payable.
(d) Claim relief(s) as prescribed by the law, for double taxation and calculate balance tax payable.
(e) Add interest payable as prescribed by the law to reach total tax and interest payable.
(f) Deduct the amount of prepaid taxes, if any, like “tax deducted at source”, “advance-tax” and “selfassessment-tax”. The result will be the tax payable (or refundable).
(3) A return of income can be filed in any of the following manners:
(a) Under section 139(1) i.e., within the “due date” prescribed by the law;
(b) Under section 139(4) i.e., after the expiry of the “due date” but before the expiry of one year from the
end of the relevant assessment year;
(c) Under section 139(5) a return already filed, can be revised by filing a fresh return within one year
from the end of the relevant assessment year or before the completion of assessment, whichever is
earlier;
(d) Under Section 139(9), defective/invalid returns can be filed afresh after curing the defects; Instructions to Form ITR-7 (AY 2013-14)
Page 3 of 11
(e) Under section 142(1) i.e., pursuant to a statutory notice calling for the return;
(f) Under section 148 i.e., pursuant to a statutory notice u/s 149 for assessing or reassessing total income
that has been either not assessed or under-assessed earlier;
(g) Under section 153A i.e. pursuant to a statutory notice calling for return in case of search;
(h) Under section 153C i.e. pursuant to a statutory notice calling for return.
Obligation to file return of income
(a) Return under section 139(4A) is required to be filed by every person in receipt of income derived
from property held under trust or other legal obligation wholly for charitable or religious purposes or
in part only for such purposes, or of income being voluntary contributions referred to in sub-section
(iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a
representative assessee (the total income for this purpose 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.
(b) Return under section 139(4B) is required to be filed by a political party if the total income without
giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable
to income-tax.
(c) Return under section 139(4C) is required to be filed by every –
(i) scientific research association referred to in section 10(21);
(ii) news agency referred to in section 10(22B);
(iii) association or institution referred to in section 10(23A);
(iv) institution referred to in section 10(23B);
(v) fund or institution or university or other educational institution or any hospital or other medical
institution referred to in section 10(23C)(iv)/ (v)/ (vi) if the conditions mentioned in section
139(4C) are satisfied.
(d) Return under section 139(4D) is required to be filed by every university, college or other institution
referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, which is not required to
furnish return of income or loss under any other provision of this section.
(e) Return of income is also required to be filed by a person if his total income before allowing
deductions under section 10A or section 10B or section 10BA or Chapter VI-A exceeds the
maximum amount which is not chargeable to income tax.
(f) The losses shall not be allowed to be carried forward unless the return has been filed on or before the
due date.
(g) The deduction under sections 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC shall not be allowed unless
the return has been filed on or before the due date.
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