- Click here to read Part 1: Key Changes in ITR 1 Sahaj and ITR 2
- Click here to read Part 2: Key Changes in ITR 3
- Click here to read Part 3: Key Changes in ITR 4 Sugam and ITR 5
- Click here to read Part 4: Key changes in ITR 6
Who is eligible to use Form ITR 7?
This Return Form can be used by persons including companies who are required to furnish returns under section139(4A) or section139(4B) or section139(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 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 Regional Projects set up by Colombo Declaration |
Section 10(23BBC) |
|
7 |
lnsurance 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)
1. 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)
2. 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"
3. 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 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 section 115AB)" 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 section 115AB) @20%
- 115AD(1)(i)‐Income being other than dividend income received by an FII in respect of securities (other than units referred to in section 115AB) @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.
4. In Schedule TDS, earlier TDS credit is allowed only if corresponding income is being offered for tax this year , however an exception is being added for TDS u/s 194N. Also, the label is amended to include form 16D for the claim of TDS
5. Annexure 1: Upload level validations table is modified wrt mapping changes and new rules
6. Annexure 2: Note on calculation of "Eligible Interest expenditure" at sl.no.3c(ii) of Schedule OS
7. Annexure 3: Note on "How to provide Bifurcation of sl.no.1(i) OS dividend income other than 2(22) (e) and 1(ii) Dividend income u/s 2(22)(e) for 234C
8. Annexure 4: Determining income for calculation of 234C
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