Expert ITR7 Return Filing for Trusts, NGOs & Political Parties
ITR7 return filing is mandatory for trusts, NGOs, political parties, and institutions claiming tax exemption under sections 11 and 12. Our expert CA team ensures accurate filing with comprehensive compliance management, detailed documentation, and strategic exemption planning for your organization.
Benefits of Professional ITR7 Filing
- Exemption Compliance: Complete adherence to sections 11, 12, and other exemption provisions
- Documentation Management: Proper maintenance of trust deeds, registration certificates, and audit reports
- Expert Guidance: Professional CA assistance for complex exemption calculations and provisions
- Regulatory Compliance: Ensuring compliance with Income Tax Act, FCRA, and other applicable regulations
- Penalty Prevention: Timely filing prevents cancellation of registration and heavy penalties
- Donor Confidence: Proper tax filing enhances credibility with donors and stakeholders
ITR7 Filing Process
Document Collection
Gather trust deed, registration certificates, audited accounts, receipts & payments account, and exemption certificates
Income Computation
Calculate total income, application of income for charitable purposes, and exemptions under sections 11, 12, and 13
Form Preparation
Prepare detailed ITR7 with all schedules including income & expenditure, balance sheet, and exemption details
Digital Filing
File ITR7 online through Income Tax portal with digital signature and mandatory attachments
Compliance & Follow-up
Ensure filing acknowledgment, handle notices, and provide ongoing exemption compliance support
Frequently Asked Questions
What is ITR7 and which entities need to file it?
ITR7 is an income tax return form for trusts, NGOs, political parties, and institutions claiming tax exemption under sections 11, 12, 10(23C), and 13A. All registered charitable/religious trusts, educational institutions, medical institutions, and political parties must file ITR7 regardless of their income status.
What is the due date for ITR7 filing?
The due date for ITR7 filing is September 30th of the assessment year. However, if the entity's accounts are required to be audited, the due date extends to October 31st. For entities with income above ₹1 crore, audit is mandatory and the extended due date applies.
What documents are required for ITR7 filing?
Required documents include trust deed/MOA-AOA, registration certificates (12A/12AA/10(23C)), audited financial statements, receipts & payments account, TDS certificates, Form 10B, Form 9A/9B for corpus donations, and details of activities undertaken.
What are the tax rates for entities filing ITR7?
Entities with valid exemption certificates are generally exempt from tax on income applied for charitable purposes. However, any income not applied for charitable purposes or business income is taxed at maximum marginal rate of 30% plus cess and surcharge as applicable.
What is the 85% rule for charitable trusts?
Under Section 11(1), charitable trusts must apply at least 85% of their income for charitable purposes in the same year to claim exemption. The remaining 15% can be accumulated for future charitable activities with proper justification and board resolution.
What are the penalties for late filing of ITR7?
Late filing penalty under Section 234F ranges from ₹1,000 to ₹10,000 depending on the total income. Additionally, non-compliance can lead to cancellation of registration under sections 12A/12AA, resulting in loss of tax exemption benefits permanently.
Is audit mandatory for entities filing ITR7?
Audit is mandatory for entities with total income/receipts exceeding ₹1 crore. Additionally, entities claiming exemption under sections 11, 12, or 13 must get their accounts audited and submit Form 10B along with the audit report from a qualified chartered accountant.
Can foreign contributions be included in ITR7?
Yes, entities with valid FCRA registration must report foreign contributions in ITR7. However, such entities must also file separate FCRA returns. Foreign contributions used for charitable purposes within India are generally exempt from tax under section 11.