How to file ITR-7 For AY 2024-25 By research Institutions Covered u/s10(21)

Scientific Research Association, Institutions, Universities and Colleges which Undertake research in the area of Medical, Agricultural, Natural and Applied Sciences and Social Sciences seek approval under section 35 (1) (ii) or (iii) of the Income Tax Act, 1961 if they wish to obtain donations from industry or other sources . The institutions notified under the section obtain benefit to the effect that any sum obtained by them for research purposes is wholly exempted from the levy of Income Tax. The donors who pay sums to such notified Institutions are allowed deductions from their income to the extent of donations given for scientific research.

Here we have detail about the schedules which need to fill mandatorily by the institutions covered under section 10(21) for ITR -7 filing ITR For AY 2024-25

1. Part A-General
2. Schedule IE 1
3. Schedule VC
4. Schedule I
5. Schedule IA
6. Balance Sheet
7. Part B2 of B-TI

PART A -General  

• Registration Details u/s 35 should be filled in Schedule Part-A General.
• Return furnished section’ should be selected as 139(4C)/(4D) and ‘Section under which exemption claimed’ should be selected as section 10(21)/ 10(21) read with section 35 in Schedule Part-A General.

How to Report Income/Receipts  :-

Schedule of Income & Expenditure statement (schedule IE-1)

This schedule need to filled when the assesse claiming exemption for research institution however the schedule is very simple and required only 3 row items to fill like what you have received , what you have spent against such receipt and What you have been accumulated during year

Schedule of Voluntary Contributions (schedule VC)

Voluntary contributions are a vital source of funding for charitable organizations. Donations are always considered to be an important source of revenue for non-profit organizations. As you can see in Schedule VC, It is divided in 5 parts which is A, B, C, D, and E. Let’s discuss it in quite depth, A indicates the Domestic Contribution which is other than anonymous donations taxable u/s 115 BBC. B Indicates the Foreign Contribution which is also other than anonymous donations taxable u/s 115 BBC. C indicates both the part A and B Total contributions (Aiii + Biii). D indicates the Anonymous Donations chargeable u/s 115 BBC. And at last E also indicates Anonymous donations which is other than those included at SI. NO. Diii.

It contains information about ‘voluntary contributions’ data. Here, all the break-up of corpus and non-corpus donations, grants received from the Government, grants received from companies under CSR, foreign contribution etc. are to be provided. In addition, details of anonymous donations which are provided and recoverable under section 115BBC are required to be furnished separately.

Schedule I

It contains the particulars of the amount which has become accumulated or set apart within the meaning of section 11(2) or in terms of the third proviso to section 10(23C), There are several columns where details have to be filled regarding the amount accumulated or set apart and the purpose for which it has been accumulated, the amount invested or deposited in any mode specified under section 11(5), the amount applied for charitable or religious purposes.

Schedule IA 

SCH I is used to charge to tax such income to report such income which is accumulated/ set apart by you for some purpose as mentioned under section 11(2) or Third proviso to section 10(23C), but if the commitment fails like organization has spent the income in other way as promised or Not Invested in specified mode under section 11(5) than the same income need to be taxed in the year in which Here some heads of income chargeable to tax under section 11(3) that need to be reported as income accumulated and which have been taxed in the earlier years have to be filled in this schedule.

(3) Any income referred to in sub-section (2) which—

(a) shall be devoted to a use or uses other than for the charitable and religious purposes as aforesaid or if the same ceases to be accumulated or set apart for use for the said charitable and religious purposes.

(b) ceases to remain invested or deposited in any of the forms or modes referred to in subsection (5).

(c) Thus, where under sub-section (3) a sum has been so accumulated or set apart for any expenditure, that sum is not utilised for the purpose for which it is so accumulated or set apart during the ‘period which has been referred to in clause (a) of that sub-section’.

(d) is credited or paid to any trust or institution registered under section 12AA 47[or section 12AB] or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10,

48[Such sum shall be deemed to be the income of such person of the previous year,—

(i) In the case of expenditure, where it is so applied; or where upon it ceases to be so accumulated or set apart under clause (a). In the circumstances specified in sub-clause.

(ii) In which it ceases to remain so invested or deposited under clause (b);

(iii) being the last previous year of the period, for the purpose of determining the income to be accumulated or set apart for the purpose of the provision of APFAS or AVFAS as the case may be, for a period exceeding 12 months, where the income so accumulated or set apart is not utilized for the purpose for which it is so accumulated or set apart under clause (c);

(iv) in which it is credited or paid to any fund or institution or trust or any university or other educational institution or hospital or other medical institution referred to in clause (d)].

Schedule of balance sheet (part-bs)

Balance sheet should be mandatorily filled by all persons who is filing ITR 7. Please fill up the details of the Balance Sheet items as on 31st March 2024, mentioning the details of Sources of funds and Application of fund

• Exemption amount should be entered in Si.no.8(a) of Schedule Part BTI

• Exemption amount should be entered in relevant column of Part B2 of Schedule Part BT

Schedule of exemption (Partb2-b-TI)

This column pertains to required detail for the Section 10(21) research Institutions , institution claiming exemption must fill this schedule.

DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through Whatsapp:- +91-9871990888 or info@ngopilot.in .