Instructions to Form ITR-7 (AY 2013-14)

Instructions for filling out Form ITR-7

These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.
1. Assessment Year for which this Return Form is applicable
This Return Form is applicable for assessment year 2013-2014 only i.e., it relates to income earned in Financial Year 2012-13.
2. Who can use this Return Form?
This Form can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D).
3. Annexure-less Return Form
No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. Tax-payers are advised to match the
taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement (Form 26AS). (Please refer to www.incometaxindia.gov.in).
4. Manner of filing this Return Form
This Return Form can be filed with the Income Tax Department in any of the following ways, -
(i) by furnishing the return in a paper form;
(ii) by furnishing the return electronically under digital signature;
(iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;
(iv) by furnishing a Bar-coded return.
Where the Return Form is furnished in the manner mentioned at 4(iii), the assessee should print out two copies of Form ITR-V. 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). The other copy may be retained by the assessee for his record.
From assessment year 2013-14 onwards in case of an assessee claiming relief under section 90, 90A or 91 to whom Schedule FSI and Schedule TR apply, he has to furnish the return in the manner provided at 4(ii) or 4(iii).
From assessment year 2013-14 onwards in case an assessee who is required to furnish a report of audit under section 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 12A(1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID,
80JJAA, 80LA, 92E or 115JB he shall file the report electronically on or before the date of filing the return of income. Further, the assessee who is liable to file the above reports electronically shall file the return of income in the manner provided at 4(ii) or 4(iii).
5. Filling out the acknowledgement
Only one copy of this Return Form is required to be filed. Where the Return Form is furnished in the manner mentioned at 4(i), the acknowledgement slip attached with this Return Form should be duly filled.
6. Codes for filling this Return Form
(i) Under the heading ‘Filing Status’ in the Return Form the relevant box needs to be checked regarding section under which the return is being filed on the basis of following
Sl.No. How the return is filed
i. Before the due date as provided under section 139
ii. After the due date under section 139(1) but before the expiry of one year from the end of relevant assessment year as per section 139(4)
iii Revised Return under section 139(5)
iv In response to notice under section 139 (9) for removal of defects
v. In response to notice under section 142(1)
vi. In response to notice under section 148
vii. In response to notice under section 153A
viii. In response to notice under section 153C
ix. Under section 92CD to give effect to advance pricing agreement entered with the Board
(ii) Under the head Audit Information, if the assessee is liable for Audit u/s 44AB and the accounts have been audited by an accountant, the details of such audit report along with the date of furnishing it to the department has to be
filled. Further, if the assessee is liable to furnish other audit report the section under which audit is required and the
Instructions to Form ITR-7 (AY 2013-14)

date of furnishing it to the department (if audit has been carried out under that section) has to be filled. From A.Y. 2013-14 it has become mandatory to furnish audit reports (if the audit has been carried out) under the following
sections electronically on or before the date of filing the return of income.
Section under which Audit report is mandatorily to be filed electronically (if the audit has been carried out) on or before the date of filing the return of income
Sl. Section Sl. Section
1. 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via) 7. 80-IC
2. 10A 8. 80-ID
3. 12A(1)(b) 9. 80JJAA
4. 44AB 10. 80LA
5. 80-IA 11. 92E
6. 80-IB 12. 115JB
7. BRIEF SCHEME OF THE LAW- Before filling out the form, you are advised to read the following-
(1) Computation of total income
(a) “Previous year” is the financial year (1st April to the following 31st March) during which the income in question has been earned. “Assessment Year” is the financial year immediately following the previous year.
(b) Tax is chargeable on what is called ‘total income’; it has a definite technical meaning.
(c) Total income is to be computed as follows, in the following order:
(i) Classify all items of income under the following heads of income-
(A) “Income from house property”; (B) “Profit and gains from business or profession”; (C)
“Capital gains”; and (D) “Income from other sources”. [There may be no income under one or more of the heads at (A), (B), (C) and (D)].
(ii) Compute taxable income of the current year (i.e., the previous year) under each head of income separately in the Schedules which have been structured so as to help you in making these computations as per provisions of the Income-tax Act. These statutory provisions decide what is to be included in your income, what you can claim as an expenditure or allowance and how much, and also what you cannot claim as an expenditure/allowance.
(iii) Set off current year’s head wise loss(es) against current year’s head wise income(s) as per procedures prescribed by the law. A separate Schedule is provided for such set-off.
(iv) Aggregate the headwise end-results as available after (iii) above; this will give you “gross total income”.
(v) Deduct from the gross income, amounts exempt under sections 10 and 11, to arrive at gross total income.
(vi) From gross total income, subtract, as per procedures prescribed by the law, “deductions” mentioned in Chapter VIA of the Income-tax Act. The result will be the total income. Besides, calculate agricultural income for rate purposes.
(2) Computation of income-tax, education cess including secondary and higher education cess and interest in respect of income chargeable to tax.
(a) Compute income-tax payable on the total income. Special rates of tax are applicable to some specified items. Include agricultural income, as prescribed, for rate purposes, in the tax computation procedure.
(b) In case, the tax liability computed as above is less than 18.5% of book profit, the company is required to pay minimum alternate tax (MAT) under section 115JB at the rate of 18.5% of the profit. The excess tax so paid is allowable to be carried forward for credit in the year in which tax liability under the normal provisions of the Act is more than MAT liability. Such carry-forward is allowable up to 5 years.
(c) Add Education Cess including secondary and higher education cess at the rate of 3% on the tax payable.
(d) Claim relief(s) as prescribed by the law, for double taxation and calculate balance tax payable.
(e) Add interest payable as prescribed by the law to reach total tax and interest payable.
(f) Deduct the amount of prepaid taxes, if any, like “tax deducted at source”, “advance-tax” and “selfassessment-
tax”. The result will be the tax payable (or refundable).
(3) A return of income can be filed in any of the following manners:
(a) Under section 139(1) i.e., within the “due date” prescribed by the law;
(b) Under section 139(4) i.e., after the expiry of the “due date” but before the expiry of one year from the end of the relevant assessment year;
(c) Under section 139(5) a return already filed, can be revised by filing a fresh return within one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier;
(d) Under Section 139(9), defective/invalid returns can be filed afresh after curing the defects;
Instructions to Form ITR-7 (AY 2013-14)

(e) Under section 142(1) i.e., pursuant to a statutory notice calling for the return;
(f) Under section 148 i.e., pursuant to a statutory notice u/s 149 for assessing or reassessing total income that has been either not assessed or under-assessed earlier;
(g) Under section 153A i.e. pursuant to a statutory notice calling for return in case of search;
(h) Under section 153C i.e. pursuant to a statutory notice calling for return.
(4) Obligation to file return of income
(a) Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-section
(iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax.
(b) Return under section 139(4B) is required to be filed by a political party if the total income without
giving effect to the provisions of section 139A exceeds the maximum amount which is not chargeable
to income-tax.
(c) Return under section 139(4C) is required to be filed by every –
(i) scientific research association referred to in section 10(21);
(ii) news agency referred to in section 10(22B);
(iii) association or institution referred to in section 10(23A);
(iv) institution referred to in section 10(23B);
(v) fund or institution or university or other educational institution or any hospital or other medical
institution referred to in section 10(23C)(iv)/ (v)/ (vi) if the conditions mentioned in section
139(4C) are satisfied.
(d) Return under section 139(4D) is required to be filed by every university, college or other institution
referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, which is not required to
furnish return of income or loss under any other provision of this section.
(e) Return of income is also required to be filed by a person if his total income before allowing
deductions under section 10A or section 10B or section 10BA or Chapter VI-A exceeds the
maximum amount which is not chargeable to income tax.
(f) The losses shall not be allowed to be carried forward unless the return has been filed on or before the
due date.
(g) The deduction under sections 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC shall not be allowed unless
the return has been filed on or before the due date.
8. Instructions for filling out this Form
(i) The codes for nature of business to be filled in ‘Schedule BP –General’ are as under-
Sector Sub-Sector Code
(1)
Manufacturing
Industry
Agro-based industries 0101
Automobile and Auto parts 0102
Cement 0103
Diamond cutting 0104
Drugs and Pharmaceuticals 0105
Electronics including Computer Hardware 0106
Engineering goods 0107
Fertilizers, Chemicals, Paints 0108
Flour & Rice Mills 0109
Food Processing units 0110
Marble & Granite 0111
Paper 0112
Petroleum and Petrochemicals 0113
Power and energy 0114
Printing & Publishing 0115
Rubber 0116
Steel 0117
Sugar 0118
Tea, Coffee 0119
Textiles, handloom, Power looms 0120
Tobacco 0121
Tyre 0122
Instructions to Form ITR-7 (AY 2013-14)

Vanaspati & Edible Oils 0123
Others 0124
(2) Trading Chain Stores 0201
Retailers 0202
Wholesalers 0203
Others 0204
(3) Commission
Agents
General Commission Agents 0301
(4) Builders
Builders 0401
Estate Agents 0402
Property Developers 0403
Others 0404
(5) Contractors
Civil Contractors 0501
Excise Contractors 0502
Forest Contractors 0503
Mining Contractors 0504
Others 0505
(6)
Professionals
Chartered Accountants, Companies Secretaries, etc. 0601
Fashion designers 0602
Legal professionals 0603
Medical professionals 0604
Nursing Homes 0605
Specialty hospitals 0606
Others 0607
(7) Service
Sector
Advertisement agencies 0701
Beauty Parlours 0702
Consultancy services 0703
Courier Agencies 0704
Computer training/educational and coaching institutes 0705
Forex Dealers 0706
Hospitality services 0707
Hotels 0708
I.T. enabled services, BPO service providers 0709
Security agencies 0710
Software development agencies 0711
Transporters 0712
Travel agents, tour operators 0713
Others 0714
(8) Financial
Service Sector
Banking Companies 0801
Chit Funds 0802
Financial Institutions 0803
Financial service providers 0804
Leasing Companies 0805
Money Lenders 0806
Non-Banking Finance Companies 0807
Share Brokers, Sub-brokers, etc. 0808
Others 0809
(9)
Entertainment
Industry
Cable T.V. productions 0901
Film distribution 0902
Film laboratories 0903
Motion Picture Producers 0904
Television Channels 0905
Others 0906
(10)
Other Sector
[other than (1) to
(9) above]
1001
(ii) In Schedule SI, the codes for the sections which prescribed special rates of tax for the income mentioned
therein are as under:-
Instructions to Form ITR-7 (AY 2013-14)

Sl. No. Nature of income Section Rate of tax
1. Tax on accumulated balance of recognised
provident fund
111 To be
computed in
accordance
with rule 9(1)
of Part A of
fourth
Schedule
2. Short term capital gains 111A 15
3. Long term capital gains (with indexing) 112 20
4. Long term capital gains (without indexing) 112 proviso 10
5. Long term capital gains on transfer of unlisted
securities in the case of non-residents
112(1)(c)(iii) 10
6. Dividends, interest and income from units
purchase in foreign currency in the case of
non-residents
115A(1)(a) 20
7. Interest received by non-resident from
infrastructure debt fund
115A(1)(a)(iia) 5
8. Income received by non-resident as referred
in section 194LC
115A(1)(a)(iiaa) 5
9. Income from royalty where agreement entered
between 31.3.1961 to 31.3.1976 and income
from fees for technical services where
agreement entered between 29.2.1964 and
31.3.1976, and agreement is approved by the
Central Government.
Paragraph EII of Part I
of first schedule of
Finance Act
50
10. Income from royalty & technical services 115A(1)(b) if
agreement is entered
on or before
31.5.1997
30
11. Income from royalty & technical services 115A(1)(b) if
agreement is entered
after 31.5.1997 but
before 1.6.2005
20
12. Income from royalty & technical services 115A(1)(b)if
agreement is on or
after 1.6.2005
10
13. Income received in respect of units purchased
in foreign currency by an off-shore fund
115AB(1)(a) 10
14. Income by way of long-term capital gains
arising from the transfer of units purchased in
foreign currency by a off-shore fund
115AB(1)(b) 10
15. Income from bonds or GDR purchased in
foreign currency or capital gains arising from
their transfer in case of a non-resident
115AC(1) 10
16. Income from GDR purchased in foreign
currency or capital gains arising from their
transfer in case of a resident
115ACA(1) 10
17. Profits and gains of life insurance business 115B 12.5
18. Winnings from lotteries, crosswords puzzles,
races including horse races, card games and
other games of any sort or gambling or
betting of any form or nature whatsoever
115BB 30
19. Tax on non-residents sportsmen or sports
associations or entertainer
115BBA 20
20. Tax on income from units of an open – ended
equity oriented fund of the Unit Trust of India
or of Mutual Funds
115BBB 10
21. Anonymous donations 115BBC 30
22. Tax on dividend of an Indian company from
specified foreign company
115BBD 15
23. Tax on income under section 68, 69, 69A, 115BBE 30
Instructions to Form ITR-7 (AY 2013-14)

69B, 69C or 69D
24. Investment income of a non-resident 115E(a) 20
25. Income by way of long term capital gains of a
non-resident
115E(b) 10
26. Double Taxation Avoidance Agreement
(DTAA)
9. SCHEME OF THE FORM
The Scheme of this form follows the scheme of the law as outlined above in its basic form. The Form has been divided
into three parts. It also has nineteen schedules. The details of these parts and the schedules are as under:-
(i) Part A-GEN mainly seeks general information requiring furnishing of personal information like name and
address, PAN number, date of creation, fling status, other details and audit details ;
(ii) The second part, i.e., Part-B is regarding an outline of the total income and tax computation in respect of
income chargeable to tax.
(iii) There are various schedules details of which are as under-
(a) Schedule BA: Details of Bank account
(b) Schedule-I: Details of amounts accumulated/ set apart within the meaning of section 11(2) in last year’s
viz., previous years relevant to the current assessment year.
(c) Schedule-J: Statement showing the investment of all funds of the Trust or Institution as on the last day
of the previous year.
(d) Schedule-K: Statement of particulars regarding the Author(s)/ Founder(s)/ Trustee(s)/ Manager(s), etc.,
of the Trust or Institution.
(e) Schedule-LA: Details in case of a political party.
(f) Schedule-ET: Details in case of an Electoral Trust
(g) Schedule-HP: Computation of income under the head Income from House Property.
(h) Schedule-CG: Computation of income under the head Capital gains.
(i) Schedule-OS: Computation of income under the head Income from other sources.
(j) Schedule-OA: General information about business and profession.
(k) Schedule-BP: Computation of income under the head “profit and gains from business or profession”.
(l) Schedule-CYLA: Statement of income after set off of current year’s losses
(m) Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
(n) Schedule-MATC: Computation of tax credit under section 115JAA
(o) Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC
(p) Schedule AMTC: Computation of tax credit under section 115JD
(q) Schedule-SI: Statement of income which is chargeable to tax at special rates
(r) Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
(s) Schedule-TDS: Statement of tax deducted at source on income other than salary.
(t) Schedule-TCS: Statement of tax collected at source
(u) Schedule FSI: Details of income accruing or arising outside India
(v) Schedule TR: Details of Taxes paid outside India
(w) Schedule FA: Details of Foreign Assets
10. GUIDANCE FOR FILLING OUT PARTS AND SCHEDULES
(1) General
(i) All items must be filled in the manner indicated therein; otherwise the return maybe liable to be held
defective or even invalid.
(ii) If any schedule is not applicable score across as “---NA---“.
(iii) If any item is inapplicable, write “NA” against that item.
(iv) Write “Nil” to denote nil figures.
(v) Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.
(vi) All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss
and tax payable be finally rounded off to the nearest multiple of ten rupees.
(2) Sequence for filling out parts and schedules
(i) Part A
(ii) Schedules
(iii) Part B
(iv) Verification
11. PART A-GEN
Most of the details to be filled out in Part-Gen of this form are self-explanatory. However, some of the details
mentioned below are to be filled out as explained hereunder:-
(a) It is compulsory to quote PAN.
(b) Codes for status:
Instructions to Form ITR-7 (AY 2013-14)

Sl. Status Code Sl. Status Code
i Individual 01 viii Association of persons (Trust) 08
ii
Hindu Undivided Family (other than that
mentioned below)
02 ix Body of individuals (BOI) 09
iii
Undivided Family which has at least one
member with total income of the previous
year exceeding the maximum amount not
chargeable to tax
03 x Artificial juridical person 10
iv Unregistered firm 04 xi Co-operative society 11
v Registered firm/ firm (other than the one
engaged in profession)
05 xii Company as per section 25 of
the Companies Act
12
vi Registered firm/ firm engaged in profession 06 xiii Local authority 16
vii Association of persons (AOP) 07
(c) Tax payers are advised to furnish their correct mobile number and e-mail address so as to facilitate the
Department in sending updates relating to demand, refund etc. In case a return is filed by an
intermediary/professional, the email address of the intermediary as well as the assessee may be provided;
(d) Details of the project/ institution run by you- In this section write the name of the project/institution run by you.
For example- If running educational projects/institutions then name of the school/college/university etc need to
be mentioned. Similarly in case of the hospitals/research institutions the name of the hospital or research centre
need to be mentioned. If more than one project/institution is run by the taxpayer, then mention the name of all
the projects/institutions. The nature of activity of the project/institution should be mentioned.
The classification of the activity engaged by the project/institution should be filed as per the codes below. In
case the activity falls under more than one classification, all such classification codes to be specified
Sl. Classification Classification code
i Relief of the poor A
ii Education B
iii Medical Relief C
iv Preservation of environment (including watersheds, forests and wildlife) D
v Preservation of monuments or places or objects of artistic or historic interest E
vi Object of general public utility F
vii Any other G
(e) Tick in the box to indicate the section under which the return is filed.
(f) All the boxes in the table for “Other Details” need to be filled.
A. The taxpayer needs to fill yes if any of the charitable purpose is advancement of any other object of
general public utility as per section 2(15). If the activities carried on by you is of commercial nature then
tick yes.
B. If claiming exemption under section 10 then tick the appropriate box and fill out the details of date of
approval/registration etc.
C. Any university or other educational institution existing solely for educational purposes and not for
purposes of profit; any hospital or other institution for the reception and treatment of persons suffering
from illness or mental defectiveness etc existing solely for philanthropic purposes and not for purposes of
profit are required to fill the details mentioned herein.
D. If registered under section12A/12AA, then provide the registration number and the date of the
registration.
E. If you have received approval under section 35 then provide the approval reference number and the date
of approval.
F. If you have received approval under section 80G then provide the approval reference number and the date
of approval.
G. If there is any change in the objects or activities during the financial year then tick yes.
H. If registration under Foreign Contribution Regulation Act (FCRA) has been done, date of registration and
registration number need to be mentioned. The total amount received from outside India during the
financial year need to be written in the space earmarked for the same. The purpose for which the foreign
contribution is received also needs to be specified.
(g) “Audit Details needs” to be filled up in this table. Audit is required to be done under different sections of the
Act, including section 10(23C) (iv), 10(23C) (v), 10(23C) (vi), 10(23C) (via), section 12A, section 13A, section
44AB etc. Specify the section under which audit has been done in the space designated for the same in the
return and date of furnishing the audit report.
12. PART B –TI
Instructions to Form ITR-7 (AY 2013-14)

(a) Item 1-4: transfer figure(s) from the appropriate.
(b) Item 6-7: make adjustments as per the provisions of section 11.
(c) Income chargeable under section 11(4) to be separately mentioned.
(d) Items 12-16: total of agricultural income to be mentioned for rate purposes; income chargeable at special rates
and maximum marginal rates are to be mentioned separately. Anonymous donations, taxed @30%, need to be
mentioned separately.
13. PART B-TTI
The scheme of computation of tax liability has been provided.
14. SCHEDULES
(a) Schedule- BA: In this schedule, please quote the IFSC code of the bank whether you want to receive the refund
through electronic clearing system (ECS) or not. However, it may not be possible to issue the refund in all cases
through ECS since the ECS facility is not available across the country.
If you have any asset (including financial interest in any entity) located outside India or signing authority in any
account located outside India, then tick yes and also ensure to fill Schedule FA.
(b) Schedule – I
Under section 11(2), where 85 % of the income is not applied or is not deemed to have been applied, to charitable
or religious purposes in India during the previous year but is accumulated or set apart, either in whole or in part,
for application to such purposes of India, such income so accumulated or set apart shall not be included in the
total income of the previous year, if certain conditions are satisfied. One of the conditions, inter alia, is that the
accumulation cannot be carried forward beyond five year.
Furnish the details of financial year of accumulation; amount accumulated in respective years, whether the
amount accumulated is invested in accordance with the provisions of section 11(5), purpose of accumulation etc.
(c) Schedule J: Here, mention the investment of all funds of the trust or institution as on the last day of the previous
year. The table given is self-explanatory.
(d) Schedule K: Here, mention the particulars regarding the author(s)/ founder(s)/ trustee(s)/ manager(s) etc., of the
trust or institution with their names, and date of creation of trust/ institution etc.
(e) Schedule LA: Section 13A of the Income-tax Act provides exemption to a political party in respect of income
chargeable under the head “Income from house property”, “Income from other sources” or “capital gains” or
Income by way of voluntary contributions received by it, subject to fulfilment of certain conditions mentioned
therein. This schedule seeks to provide the information relating to fulfilment of those conditions.
(f) Schedule-OS,-
(a) Against item 1a and 1b, enter the details of voluntary contributions or donations received for
corpus and voluntary contributions or donations received for other than corpus.
(b) Against item 1c and 1d, enter the details of gross income by way of dividend and interest which is
not exempt.
(c) Against item 1e, indicate the gross income from machinery, plant or furniture let on hire and also
such income from building where its letting is inseparable from the letting of the said machinery,
plant or furniture, if it is not chargeable to income-tax under the head “Profits and gains of
business or profession”.
(d) Income from owning and maintaining race horses is to be computed separately as loss from
owning and maintaining race horses cannot be adjusted against income from any other source, and
can only be carried forward for set off against similar income in subsequent years.
(e) Winnings from lotteries, crossword puzzles, races, etc., are subject to special rates of tax; hence a
separate item is provided and the income from these cannot be adjusted against the losses arising
under the head Income from other sources.
(f) Item 5 of this Schedule computes the total income chargeable under the head “Income from other
sources” (item 3 + item 4c). If balance in item 4c from owning and maintaining race horses is a
loss, please enter 0 and enter the total of item 3 in item 5 only.
(g) Schedule-HP,- If there are two or less than two house properties, fill out the details for each properties in this
Schedule. The information relating to the percentage of share of the assessee in the co-owned property is
mandatory. In case the property is co-owned then the assessee needs to furnish the name of the co-owner, PAN
and percentage of share of the other co-owner (s) in the property. However the details of PAN and percentage of
share of other co-owner (s) is optional.
If there are more than two house properties, the details of remaining properties be filled in a separate sheet in the
format of this Schedule and attach this sheet with this return. The results of all the properties have to be filled in
last row of this Schedule. Following points also need to be clarified,-
(i) Annual letable value means the amount for which the house property may reasonably be expected
to let from year to year, on a notional basis: Deduction for taxes paid to local authority shall be
available only if the property is in the occupation of a tenant, and such taxes are borne by the
assessee and not by the tenant and have actually been paid during the year.
Instructions to Form ITR-7 (AY 2013-14)

(ii) Deduction is available for unrealized rent in the case of a let-out property. If such a deduction has
been taken in an earlier assessment year, and such unrealized rent is actually received in the
assessment year in question, the unrealized rent so received is to be shown in item 3a of this
Schedule.
(iii) Item 3b of this Schedule relates to enhancement of rent with retrospective effect. Here mention
back years’ extra rent received thereon, and claim deduction @ 30% of such arrear rent received.
(h) Schedule-CG,-
(i) If more than one short-term capital asset has been transferred, make the combined computation for
all the assets. Similarly, make the combined computation for all the assets if more than one longterm
capital asset has been transferred.
(ii) For computing long-term capital gain, cost of acquisition and cost of improvement may be
indexed, if required, on the basis of following cost inflation index notified by the Central
Government for this purpose.
Sl. No. Financial
Year
Cost Inflation
Index
Sl. No. Financial
Year
Cost Inflation
Index
1. 1981-82 100 17. 1997-98 331
2. 1982-83 109 18. 1998-99 351
3. 1983-84 116 19. 1999-00 389
4. 1984-85 125 20. 2000-01 406
5. 1985-86 133 21. 2001-02 426
6. 1986-87 140 22. 2002-03 447
7. 1987-88 150 23. 2003-04 463
8. 1988-89 161 24. 2004-05 480
9. 1989-90 172 25. 2005-06 497
10. 1990-91 182 26. 2006-07 519
11. 1991-92 199 27. 2007-08 551
12. 1992-93 223 28. 2008-09 582
13. 1993-94 244 29. 2009-10 632
14. 1994-95 259 30. 2010-11 711
15. 1995-96 281 31. 2011-12 785
16. 1996-97 305 32. 2012-13 852
(iii) Sections 54/54B/54D/54EC/ 54F/54G/54GA mentioned in this schedule provides exemption on
capital gains subject to fulfillment of certain conditions. Exemption under some of these sections
is available only in respect of long-term capital gains. Therefore, please ensure that you are
claiming the benefit of any of these sections correctly in accordance with the provisions of law.
(iv) Item C of this Schedule computes the total of short-term capital gain and long-term capital gain
(item A5 + item B3). Please note that if balance in item B3 in respect of long-term capital gain is a
loss, same shall not be set-off against short-term capital gain. In such situation, the figure of item
B3 would be entered as 0 and then the figures of item A5 be added in item C.
(i) Schedule-BP (General and Computation of income),-
(A) In Schedule BP-General, information relating to business and professions which are of general in
nature are to be provided. For example – nature of business carried on, number of branches,
method of accounting adopted by the taxpayer etc.
(B) Computation of income
(i) The computation in this schedule has to be started on the basis of profit before tax as shown in
profit and loss account.
(ii) In case any item of addition or deduction not covered by the items mentioned in this schedule
be filled in residual items 12 and 16 of this schedule.
(iii) In case, agricultural income to be excluded on the basis of rule 7A, 7B or 7C (in business of
growing and manufacturing tea, coffee etc), it shall not be included in the item 5c of this
schedule.
(iv) In A-23, net profit or loss from business or profession is to be computed, only in special cases,
e.g. business of growing and manufacturing tea, coffee, etc., where rules 7A, 7B or 7C is
applicable otherwise, the figure of profit/ loss as computed is A-22 may be entered.
(v) Item B of this Schedule computes the total of profit and loss form speculative business. Please
note that if balance in item B27 in respect of speculative business is a loss, same shall not be
set-off against profit from non-speculative business. In such situation, only the figures of item
A 23 be entered in item D.
(vi) Item C of this schedule computes the total of profit or loss from specified business or
profession. Please note that if balance in item C33 in respect of specified business is a loss,
Instructions to Form ITR-7 (AY 2013-14)

same shall not be set-off against profit from non-specified business. In such situation, only the
figures of item A 23 be entered in item D.
(vii) Net profit or loss from specified business under section 35AD to be mentioned in A-3.
(j) Schedule-CYLA,-
(i) Mention only positive incomes of the current year in column 1, head wise, in the relevant rows.
(ii) Mention total current year’s loss (es), if any, from house property, business or profession and other
sources (other than losses from race horses) in the first row against the heading loss to be adjusted
under the respective head.. These losses are to be set off against income under other heads in
accordance with the provisions of section 71. The amount set off against the income of respective
heads has to be entered into in columns 2, 3 and 4, in the relevant rows.
(iii) Mention the end-result of the above inter-head set-off(s) in column 5, head wise, in relevant rows.
(iv) Total of loss set off out of columns 2, 3 and 4 have to be entered into row ix.
(v) The losses remaining for set off have to be entered in row x.
(k) Schedule – MAT: Compute the book profit under section 115JB. The tax liability under said section shall be
18.5 per cent of the book profit so computed. The computation should be based on profit and loss account laid at
annual general meeting in accordance with the provisions of section 210 of the Companies Act, 1956. Further,
the computation in this Schedule be based on Form 29B. However, Form 29B is not to be attached with the
return.
(l) Schedule MATC: Credit for MAT paid in assessment year 2007-2008, 2008-09, 2009-10, 2010-11, 2011-12 and
2012-13, in excess of the normal tax liability, is allowed to be set off against the normal tax liability of
assessment year 2013-2014. However, the credit is restricted to the extent of the normal tax liability for
assessment year 2013-2014 exceeds the MAT liability for that year.
(m) Schedule –AMT,- The assessee is required to fill the details of computation of Alternate Minimum Tax (AMT)
payable under section 115JC (special provisions for payment of tax by certain persons other than a company).
The tax liability under the section shall be 18.5 percent of the adjusted total income computed under the said
section. The computation under this Schedule is to be based on Form No. 29C.
(n) Schedule –AMTC,- Mention the details for computation of tax credit where LLP is subject to Alternate
Minimum Tax and the credit for the same is being carried forward to subsequent assessment years.
(o) Schedule-SI, - Mention the income included in total income which is chargeable to tax at special rates. The
codes for relevant section and special rate of taxes are given in Instruction No.9 (iii).
(p) Schedule-IT,- In this Schedule, fill the details of payment of advance income-tax and income-tax on selfassessment.
The details of BSR Code of the bank branch (7 digits), date of deposit, challan serial no., and amount
paid should be filled out from the acknowledgement counterfoil.
(q) Schedules- TDS,- In this Schedule fill the details of tax deducted on the basis of TDS certificates (Form
No.16A) issued by the deductor(s). All the tax deductions at source made in the current financial year should be
reported in the TDS schedules. Details of each certificate are to be filled separately in the rows. “Unique TDS
Certificate Number”- this is a six digit number which appears on the right hand top corner of those TDS
certificates which have been generated by the deductor through the Tax Information Network (TIN) Central
System. “Financial Year in which TDS is Deducted”- mention the financial year in this column. In case rows
provided in these Schedules are not sufficient, please attach a table in same format.
(r) Schedule TCS,- In this Schedule, fill the details of tax collected at source on the basis of TCS certificates (Form
No. 26) issued by the Collector. In case rows provided in these Schedules are not sufficient, please attach a table in same format.
(s) Schedule FSI,-
(i) In this Schedule, fill the details of income, which is already included in total income, accruing or arising outside India.
(ii) For country code use the International Subscriber Dialing (ISD) code of the country.
(iii) The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.
(t) Schedule TR,-
(i) Mention the details of tax paid outside India on the income declared in Schedule FSI.
(ii) For country code use the ISD code of the country.
(iii) The Tax Payer Identification Number (TIN) of the assessee in the country where tax has been paid is to be filled up. In case TIN has not been allotted in that country, then, passport number should be mentioned.
(iv) Relief claimed under section 90 or section 90A or section 91 is to be filled in the respective columns.
(u|) Schedule FA,-
(i) This schedule is to be filled up by a resident assessee. It need not be filled up by a ‘not ordinarily resident’ or a ‘non-resident’. Mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India. This should also include details of any account located outside India in which the assessee has signing authority.
(ii) (A) The peak balance in the bank account during the year is to be filled up after converting the same into Indian currency.
(B) Financial interest would include, but would not be limited to, any of the following:-
Instructions to Form ITR-7 (AY 2013-14)

(1) if the resident assessee is the owner of record or holder of legal title of any financial account, irrespective of whether he is the beneficiary or not.
(2) if the owner of record or holder of title is one of the following:-
(i) an agent, nominee, attorney or a person acting in some other capacity on
behalf of the resident assessee with respect to the entity.
(ii) a corporation in which the resident owns, directly or indirectly, any share or
voting power.
(iii) a partnership in which the resident assessee owns, directly or indirectly, an
interest in partnership profits or an interest in partnership capital.
(iv) a trust of which the resident has beneficial or ownership interest.
(v) any other entity in which the resident owns, directly or indirectly, any voting
power or equity interest or assets or interest in profits.
(3) the total investment in col(5) of part (B) has to be filled up as peak investment held during the year after converting it into Indian currency.
(C) the total investment in col(5) of part (C) has to be filled up as peak investment in immovable property held during the year after converting it into Indian currency
(D) the total investment in col(5) of part (D) has to be filled up as peak investment (at cost) held during the year after converting it into Indian currency. In part D, investments in the nature of investment and not in the nature of stock-in-trade or assets used for the purpose of business are required to be reported.
(E) the details of peak balance/investment in the accounts in which you have signing authority and which has not been included in Part (A) to Part (D) mentioned above has to be filled up as peak investment/balance held during the year after converting it into Indian currency.
(iii) For the purpose of this Schedule, the rate of exchange for the calculation of the value in rupees of such asset situated outside India shall be the telegraphic transfer buying rate of such currency as on the date of peak balance in the bank account or on the date of investment.
Explanation: For the purposes of this Schedule, "telegraphic transfer buying rate", in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made available to that bank through a telegraphic transfer.
15. PART B-TI-COMPUTATION OF TOTAL INCOME
(i) In this part the summary of income computed under various heads is to be entered.
(ii) Every entry which have to be filled on basis of Schedules have been crossed referenced and hence doesn’t need any further clarification.
16. PART B-TTI-COMPUTATION OF TAX LIABILITY ON TOTAL INCOME
(a) In item 2a, fill the details of gross tax liability to be computed at the applicable rate. The tax liability has to be
computed at the rates given as under:-
(A) In case of a domestic company, @ 30% of the total income;
(B) In a case of a company other than a domestic company –
- @ 50% of on so much of the total income as consist of (a) royalties received from Government or an
Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after
the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical
services received from Government or an Indian concern in pursuance of an agreement made by it with
the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April,
1976, and where such agreement has, in either case, been approved by the Central Government;
- @ 30% of the balance
(b) In item 3, fill the details of surcharge computed @ 5% of tax in case of a domestic company having total
income exceeding one crore rupees and @ two and a half per cent of the tax in case of a company other than a domestic company.
(c) In item No. 4, calculate the education cess including secondary and higher education cess at the rate of three per cent.
17. VERIFICATION
(a) Please fill up the required information in the Verification. Strike out whatever is not applicable. Please ensure that the verification has been signed before furnishing the return. Write the designation of the person signing the return.
Instructions to Form ITR-7 (AY 2013-14)

(b) Please note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.