ITR-7
What is ITR 2 Form?
This return is applicable for Individual and Hindu Undivided Family (HUF) not having Income under the head Profits and Gains of Business or Profession and who is not eligible for filing ITR-1.
What is ITR?
An Income Tax Return (ITR) is a document used by taxpayers to report details about their income earned and the corresponding tax liability to the income tax department. It serves as a formal declaration of an individual or entity’s financial information, ensuring transparency and compliance with tax regulations.
Limit for Senior Citizens is INR 3 lakhs and for Super Senior Citizens INR 5 lakhs.
Who can use ITR 2 Form?
An individual who;
- has income from salary/ pension
- has income from more than one house property
- is a non-resident in India during the previous year
- is a director in a company
- has held any unlisted equity shares at any time during the previous year
- has any asset (including financial interest in any entity) located outside India
- has signing authority in any account located outside India
- has income from any source outside India
- is a person in whose case tax has been deducted u/s 194N
- is a person in whose case payment or deduction of tax has been deferred on ESOP
- who has any brought forward loss or loss to be carried forward under any head of income
Late Fee and Penalty for late Filing of ITR-2
Late filing of income tax returns can result in various penalties, depending on your total income.
- Late fee of Rs. 5000 will be levied on Individuals with a total income exceeding Rs. 5 lakhs, while those with income below this threshold will incur a reduced late fee of Rs. 1,000. However, Individuals having total income up to Rs. 2.5 lakhs are not required to pay any late fee for late filing of the return. For Senior Citizens, this limit is Rs. 3 lakhs and for Super Senior Citizens Rs. 5 lakhs.
- Additionally, if you owe taxes and fail to file the return by the due date, you will be liable for additional interest at a rate of 1% per month until you submit the return.
- In more severe cases, penalties can be imposed for underreporting or misreporting of income. Underreporting may lead to penalties of up to 50% of the tax underreported, while misreporting can result in penalties of up to 200% of the misreported tax amount.
- Furthermore, repeated failure to file tax returns despite reminders from tax authorities may lead to prosecution procedures. This could result in imprisonment ranging from three months to seven years, depending on the outstanding tax liabilities.
It is crucial to file your tax returns promptly and accurately to avoid these legal and financial consequences.
How we can assist you?
We provide valuable assistance in filing your ITR-2 return. We start by helping you select the appropriate form based on your income sources, ensuring accuracy in filing.
We meticulously calculate your tax liability, perform error checks, and prioritize timely filing to reduce the risk of penalties or tax notices. If eligible, we assist in processing your income tax refund efficiently.
Our team of tax experts is available to address your queries and provide guidance throughout the process. We also keep you updated on tax law changes and deadlines, ensuring your compliance with the latest regulations. With our secure platform, you can trust us to safeguard your financial data while simplifying your ITR-2 filing experience.
FAQs
What is ITR-7?
ITR-7 is an Income Tax Return form applicable to persons including companies who are required to furnish a return under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act.
Who needs to file ITR-7?
ITR-7 is for persons or entities such as trusts, political parties, institutions, colleges, investment funds, etc., who are required to furnish a return under specific sections of the Income Tax Act.
What information is required to file ITR-7?
Information such as income details, deductions claimed, taxes paid, and other financial particulars of the entity for the relevant financial year are needed.
What is the due date for filing ITR-7?
The due date for filing ITR-7 varies depending on the type of entity and may be different from the usual due dates for individuals. It's important to check the latest notifications for the specific due date.
Is audit mandatory before filing ITR-7?
For certain entities, such as trusts, audit may be mandatory before filing ITR-7. It depends on the provisions applicable to the specific entity.
What is the penalty for late filing of ITR-7?
Late filing of ITR-7 may attract a penalty under Section 234F of the Income Tax Act, which can range from ₹5,000 to ₹10,000, depending on the delay.
Are there specific schedules in ITR-7 for reporting financial details?
Yes, there are various schedules in ITR-7 for reporting different types of income, deductions, taxes, and other financial details, depending on the nature of the entity.
Can entities file ITR-7 even if they have not earned any income during the financial year?
Yes, entities may still be required to file ITR-7 even if they have not earned any income during the financial year, especially if they fall under the categories specified in the relevant sections of the Income Tax Act.
Is it necessary to disclose details of trustees, members, or directors in ITR-7?
Yes, entities filing ITR-7 may need to disclose details of trustees, members, or directors, depending on the type of entity.
Can a foreign entity file ITR-7?
Foreign entities may have different tax compliance requirements. Whether a foreign entity can file ITR-7 depends on its specific circumstances and tax obligations in India.
Is there any specific guidance available for filling out ITR-7?
Yes, the Income Tax Department provides detailed instructions and guidelines for filling out ITR-7, which should be carefully followed to ensure accurate filing
Are there any specific exemptions or deductions available for entities filing ITR-7?
Yes, depending on the nature of the entity and its activities, there may be specific exemptions or deductions available under the Income Tax Act, which can be claimed in ITR-7.
Can entities filing ITR-7 carry forward losses?
Yes, entities filing ITR-7 may be allowed to carry forward losses incurred during the financial year to be set off against future profits, subject to certain conditions.
Are there any special provisions for filing ITR-7 for political parties?
Yes, political parties have specific provisions for filing ITR-7 under the Income Tax Act, which may differ from those applicable to other entities.
Are there any special provisions for filing ITR-7 for political parties?
Yes, political parties have specific provisions for filing ITR-7 under the Income Tax Act, which may differ from those applicable to other entities.
