Creating awareness for health & sanitation, women upliftment and empowerment, providing medical relief against diseases like cancer, AIDS etc. are the execution and precedent of trust compliances. Apart from responsibility towards society, if a company is or however engages in trust activity then they can claim for various exemptions under its falling categories.
In case your firm or company is registered under a trust deed then you’re bound and liable to pay income tax return for trust for AY 2020-21.
Filing for trust ITR is also a way to save income tax and get special exemptions from the government, as its saying.
Trust income tax filing of return is done through ITR Form - 7 i.e. return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) only.
Let’s learn about ITR-7 and the steps for online trust filing here.
Also Read: How to Save Income Tax on Fixed Deposit?
ITR - 7 Explained
ITR for Trust, ITR-7 is filed when persons or its entity fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
What are these sections and what they do?
The firms, companies, local authority, Association of Person (AOP) and Artificial Judicial Person are eligible for filing Income Tax Return through ITR-7 Form.
The derived legal sections act as a way of claiming exemptions for companies as one of the following categories.
- Under Section 139 (4A)- income from a charitable /religious trust
- Under Section 139 (4B)- income from a political party
- Under Section 139 (4C)- income scientific research institutions
- Under Section 139 (4D)- income from university or colleges or institutions or khadi and village industries.
What is the structure of the ITR-7 Form?
The paperwork of the ITR-7 form is comprises into 2 comprehensive parts and 23 lengthy schedules.
‘PART A’ consists of general information such as Name Of Premises/Building/Village, PAN, Date of formation/incorporation, and much more.
‘PART B’ outlines the total income and tax computation in regard to income chargeable to tax under 23 schedules.
Important Notice: When filing for ITR-7 it is important to wisely follow the sequence for filing out parts and schedules.
TaxWink advises taxpayers to follow the sequence while filling out the income tax return in this manner - Part A >>> Part B >>> Schedules >>> Verification.
Effortless Steps to File ITR-7 Form
Filing income tax using ITR-7 form is simpler and requires effortless implementation of time. Although, it is cohesive that this return form has to be mandatorily filed online with the Income Tax Department in the following ways:
- Furnishing the return electronically under digital signature
- Entering the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V
That’s all, after filing the return, the taxpayer needs to print out 2 copies of Acknowledgement ITR - V form. 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, Bengaluru–560100 (Karnataka).
Also Read: What is Digital Signature for Income Tax Return?
Get expert assistance and free consultation when Submit Income Tax Return form ITR 7 through TaxWink virtual platform!
