22 December 2021
Eligibility Criteria for ITR-7: The following individuals and associations are eligible to file the ITR-7 form: All individuals who obtain income from property if said property is in the name of a trust All individuals who receive income for the sole purpose of charity or a religious offering Any political party that earns a net income that is more than the ceiling limit that is exempt from income tax Associations that carry out scientific research News organizations and companies Organizations as mentioned in Section 10(23A) and Section 10(23B) Educational institutions such as school, colleges or universities Medical institutions such as hospitals, clinics etc
These individuals/organizations have to file the form ITR7 for claiming the exemptions. Above the exemption criteria/limit tax is payable by these assesses also.
We have few trusts whose income is completely 100% exempted u/s.10(23da)...
Query 1 - If we have exempted income under above section, we need to file ITR 7. Right Sir ? Query 2 - If there is a 'deficit' in the trust, and the purpose of the trust creation has not been completed, Then Sir ? Thank you Sir.
Could you please educate me on the following wording derived from the instructions of ITR-5.
"Trust other than trusts eligible to file Form ITR-7 is eligible to use Form ITR-5"
My understanding: a) If there is an exempted (ex. u/s.10(23da) income, we need to file Form ITR-7. b) If there is no income, we need to file Form ITR-5.
23 December 2021
Be there be income or not, being "securitisation trust" as defined in clause (u) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and the Securities Contracts (Regulation) Act, 1956 (42 of 1956), and regulated under the said regulations; you need to file ITR 7.
Scenario: We have 'Excess of expenditure over income' in IE a/c. of our "securitisation trust". Whereas the Investment (SRs) in the trust can be redeemed in next 5 years.
Query: How do we report the 'deficit' and in which schedule(s) of ITR-7.
24 December 2021
Here the reporting in ITR should coincide with the statutory audit report. Either it would be reported as business loss or should not be claimed at all depends upon the condition mentioned therein.
24 December 2021
Okay Sir... Till AY 2020-21, we have been filing 'zero' return through ITR-7 without reporting the 'deficit' ie. business loss (since the entire income is exempted u/s.10(23DA)). After realisation of complete investment, expenses (includes previous years), we were declaring the income and distributing the same to the investors u/s.115TCA.
Query: For the AY 2021-22, the ITR-7 is holding us to file and saying that 'the cell exemption U/s.10(23DA) and schedule IE-1 should be numeric'.
24 December 2021
Technically, I think, it should be left blank, or no need to file any field in schedule PGBP. Still I would request you to take help of local CA, to solve the problem.
CAclubindia
