CBDT issues guidelines for filling ITR-7 for AY 2018-19 | FY 2017-18

CBDT issues guidelines for filling ITR-7 for AY 2018-19 | FY 2017-18

Guidelines for filling 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 2018-19 only i.e., it relates to income earned in Financial Year 2017-18.

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) or section 139(4E) or section 139(4F).

3.Annexure-less Return Form

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: -

• by furnishing the return electronically under digital signature;
• by transmitting the data in the return electronically under electronic verification code;
• by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;

However, a political party shall compulsorily furnish the return under digital signature. In case an assessee is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80- IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC, he shall file such report electronically on or before the date of filing the return of income.

5.Filling out the acknowledgement

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, Bengaluru560500 (Karnataka). The other copy may be retained by the assessee for his record.

6.Codes for filling this Return Form

• 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:-

How the return is filed	Check Box No.
Voluntarily on or before the due date under section 139(1)	1
Voluntarily after the due date under section 139(4)	2
Revised return under section 139(5)	3
Modified return under section 92CD	4
Under section 119(2)(b) on an application to be made separately before the Income-tax authority. (The return shall be treated as valid only after the application/ claim/ relief under section 119(2)(b) has been admitted by the Income-tax Authority)	5
In response to notice under section 139(9)	6
In response to notice under section 142(1)	7
In response to notice under section 148	8
In response to notice under section 153A	9
In response to notice under section 153C	10

In case of a revised/defective/modified return, please enter the receipt number of Original return and Date of filing of Original Return. This field is mandatory otherwise the revised return will not be accepted by Income-tax Department. If the return is being filed in response to notice by the Income-tax Department under section 139(9)/142(1)/148/153A/153C, please provide the date of such notice. If this is a modified return under section 92CD, please provide the date of advance pricing agreement

• 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 (if filed before the return) to the department has to be filled. Further, if the assessee is liable to furnish other audit report, the section under which such audit is required and the date of furnishing it to the department (if audit has been carried out under that section) has to be filled. It is 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 furnishing the return of income
Sl.	Section	Sl.	Section
1.	10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via)	9.	80-IC
2.	10AA	10.	80-ID
3.	12A(1)(b)	11.	80JJAA
4.	44AB	12.	80LA
5.	44DA	13.	92E
6.	50B	14.	115JB
7.	80-IA	15.	115JC
8.	80-IB

Under the head Audit Information, if assessee is liable to audit under any Act other than the Income-tax Act, please fill up, in item (K), name of the Act, Section and date of furnishing audit report. (ii) Under the head of Members information, in item L, in case of a venture capital fund or investment fund etc., the information about members of the AOP is required to be filled up. In the column for Status, the status of member of AOP should be filled up, as applicable.

Sl. No.	Status to be filled
1	Individual
2	HUF
3	Firm
4	LLP
5	Domestic Company
6	Foreign Company
7	Co-Operative Society
8	Local Authority
9	Trust
10	AOP/BOI
11	Any other Artificial Juridical Person

BRIEF SCHEME OF THE LAW- Before filling out the form, you are advised to read the following-

Computation of total income

• Previous year is the financial year (1^st April to the following 31^st March) during which the income in question has been earned. Assessment Year is the financial year immediately following the previous year.
• Tax is chargeable on what is called total income; it has a definite technical meaning.
• Total income is to be computed as follows, in the following order:-
  • Classify all items of income under the following heads of income-
    • 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)].
  • 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.
  • Set off current years head wise loss(es) against current years head wise income(s) as per procedures prescribed by the law. A separate Schedule is provided for such set-off.
  • Aggregate the headwise end-results as available after (iii) above; this will give you gross total income.
  • Deduct from the gross income, amounts exempt under sections 10 and 11, to arrive at gross total income.
  • 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.

Computation of income-tax, surcharge, education cess including secondary and higher education cess and interest in respect of income chargeable to tax.

• 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.
• Compute surcharge on tax payable on total income at applicable rates. If income includes income of the nature referred to in section 115BBE, calculate surcharge @25% of tax on such income. If total income exceeds the amount specified for levy of surcharge, calculate surcharge on balance tax (i.e. tax on total income minus tax on income chargeable u/s 115BBE) at the applicable rate.
• In case the tax liability computed as above is less than 18.5% of book profit, the assessee, being a 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 15 years.
• In case the tax liability computed as above is less than 18.5% of adjusted total income, the assessee, being a person other than a company, is required to pay alternate minimum tax (AMT) under section 115JC at the rate of 18.5% of the adjusted total income. 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 AMT liability. Such carry-forward is allowable up to 15 years
• Add Education Cess including secondary and higher education cess at the rate of 3% on the tax payable and surcharge thereon.
• Claim relief(s) as prescribed by the law, for double taxation and calculate balance tax payable.
• Add interest and fee payable as prescribed by the law to reach total tax, interest and fee payable.
• Deduct the amount of prepaid taxes, if any, like tax deducted at source, tax collected at source, advance-tax and self-assessment- tax. The result will be the amount payable (or refundable).

Obligation to file return of income

• 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 section 2 (24)(iia), if the total income in respect of which he is assessable as a representative assessee exceeds the maximum amount which is not chargeable to income-tax. The total income for this purpose shall be computed without giving effect to the provisions of sections 11 and 12 of the Income tax Act.
• Return under section 139(4B) is required to be filed by a political party if the total income in respect of which the political party is assessable exceeds the maximum amount which is not chargeable to income-tax. The total income for this purpose shall be computed without giving effect to the provisions of section 13A of the Income tax Act.
• Return under section 139(4C) is required to be filed by every:
  • scientific research association referred to in section 10(21);
  • news agency referred to in section 10(22B);
  • association or institution referred to in section 10(23A);
  • person referred to in section 10(23AAA)
  • institution referred to in section 10(23B);
  • fund or institution or university or other educational institution or any hospital or other medical institution referred to in sub-clauses (iiiab),(iiiac), (iiiad), (iiiae), (iv), (v), (vi) or (via) of the clause (23C) of section 10;
  • Mutual Fund referred to in section 10(23D);
  • Securitisation trust referred to in section 10(23DA);
  • Investor Protection Fund referred to in section 10(23EC) or 10(23ED);
  • Core Settlement Guarantee Fund referred to in section 10(23EE);
  • Venture capital company or venture capital fund referred to in section 10(23FB);
  • Trade union or association referred to in section 10(24)(a) or 10(24)(b);
  • Board or Authority referred to in section 10(29A);
  • Body or authority or Board or Trust or Commission referred to in section 10(46);
  • Infrastructure debt fund referred to in section 10(47);

if the total income in respect of which such person is assessable exceeds the maximum amount which is not chargeable to income-tax. The total income for this purpose shall be computed without giving effect to the provisions of section 10 of the Income tax Act.

• 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.
• Return under section 139(4E) is required to be filed by a business trust, which is not required to furnish return of income or loss under any other provision of this section.
• Return under section 139(4F) is required to be filed by an investment fund referred to in section 115UB, which is not required to furnish return of income or loss under any other provision of this section.
• Return of income is also required to be filed by a person if his total income before giving effect to section 10(38) or allowing deductions under Chapter VI-A exceeds the maximum amount which is not chargeable to income tax.
• The losses shall not be allowed to be carried forward unless the return has been filed on or before the due
• The deduction under the heading C-Deductions in respect of certain incomes of Chapter VI-A shall not be allowed unless the return has been filed on or before the due date.

Click here to download the guidelines issued by CBDT. This guideline also includeItem by Item Instructions for filing XML. Click here to download the ITR form

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Instructions for filing ITR for AY 2018-19 | FY 17-18

• ITR-1
• ITR-2
• ITR-3
• ITR-4
• ITR-5
• ITR-6
• ITR-7

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