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All About ITR Filing Online for Section 8 Company

ITR Filing Online

Do you run a section 8 company and want to know about ITR Filing online for your company? As we all know that Income tax return filing in India is essential for all entities including section 8 company. Income tax is the direct tax that has been paid by the public to the government of India. It has been imposed on individuals as well as companies by the CBDT i.e. Central Board of Direct Taxes. Income Tax Return Filing is crucial for the section 8 companies in order to maintain the finances properly. If you file ITR online, you can carry forward losses, claim tax deduction and refund, and many more. For a successful ITR Filing for section 8 company, it will be better to connect with the expert ITR Filing consultants.

Before moving ahead with ITR filing for section 8 company let’s have a look on what a section 8 company is.

Section 8 Company includes the NPOs i.e. Non-Profit Organizations or NGOs i.e. Non-Government Organizations that establish with an objective of promoting arts, commerce, education, science, and sport. Section 8 registrations will be done with an aim of promoting research, religion, social welfare, environment conservation and charity. You can learn about the filing ITR for section 8 company with the help of CA near me for ITR Filing.

Eligibility Criteria for ITR Filing Online for Section 8 Company

Although, Online ITR Filing is must for all the entities but section 8 Company must have to meet some specific criteria to file ITR 7 form-

  • The organization must have to be registered under section 8 of the Companies Act, 2013.
  • Company must have a charitable purpose.
  • The profit of the company must not be distributed among its partners.
  • A section 8 Company must have to file an annual return with ROC i.e. Registrar of Companies.

ITR Filing Online Applicability for Section 8 Company

In spite of being a non-profit entity, section 8 company is subject to certain provisions of the Income Tax Act. A section 8 company can enjoy the tax exemptions under specific sections. But to understand the tax applicability as per the income generated by the company, you should have to seek the professional guidance of ITR Filing consultants. There are two important forms that section 8 Company must have to file for ITR Filing which are Form 10 & 10BD.

Form 10BD

The section 8 Company that possess a certificate under Section 80G, they must submit the statement of particulars of donation to the authority in each financial year via Form 10BD within the given period of time. If you fail to file the form 10BD, it will attract the hefty penalties. The deadline of filing Form 10BD is May 31 of the FY following the year in which they received the donation.  In this form you have to fill all the essential details including-

  • ID of Donor
  • Statement Number
  • PAN/ Passport/ Aadhaar Card/ Driving License and another unique identification number
  • Address of Donor
  • Section Code [Section 35(1)(iii), Section 356(1)(ii), Section 35(1)(iia)]
  • Name of Donor
  • Mode of Receipt (Cash, Cheque/ Draft, Kind, or others)
  • Type of Donation (specific, corpus, restricted grant, or others)
  • Amount of Donation

Form 10

A Section 8 Company (religious or charitable trusts & institutions) have to file the Form 10 in order to claim the tax exemption on income that has been derived from the property help in the name of the trust. Any religious or charitable trusts & institutions havr to file Form 10 to-

  • Claim Income Tax Exemption under section 10(23c), 11, and 12AA of the Income Tax Act.
  • Collect or set apart 15% income that derived from the property help in the name of the trust for any future Charitable or religious purposes.

Trusts must have file this form within the given period of time. They should file Form 10 at least 2 months prior to the ITR Filing due date.

ITR Filing Online Exemptions Available for Section 8 Company

  • As a section 8 company, you will get the exemptions on certain incomes including donations that you received for the charitable purposes. But you have to meet the necessary conditions to file ITR as per Income Tax Act.
  • A section 8 company requires to pay the comparatively less stamp duty.
  • As per section 80G, donors can claim the tax rebate of 50% on the donations they made to any section 8 Company.
  • If a section 8 Company is registered under section 12AA (tax exemption) of the Income Tax Act, then its profit will be exempted entirely and there will be no tax levied on the company.

ITR Filing Online Form Suitable for Section 8 Company

Some specific entities including section 8 Company, trusts, charitable institutions, political parties, and educational institutions must have to file the form ITR 7 to report their income, deductions, and tax liabilities. ITR 7 is specifically made for the entities who claim exemptions under sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act.

Details in Form ITR 7 for ITR Filing Online

Part A: General Information 

In this part of the form you have to fill the basic information including name, address, PAN, assessment year and contact information.

Part B: Income and Expenditure

In this section you have to mention the detailed breakdown of income and expenditure related to your section 8 Company.  

Part C: Organization Information

In this part of the form, you have to add the information about the objectives and activities of your section 8 Company.

Part D: Tax Computation

In this section of the form you have to add the information on the tax computation and also the details of the TDS i.e. Tax Deducted at Source.

Due Date of ITR Filing Online for Section 8 Company

  • If book of accounts of a section 8 company is required to get audited, then the Income Tax Return last date for ITR 7 will be October, 31st 2024.
  • If there is no need of auditing for Section 8 Company, then the ITR Filing last date will be July 31st, 2024

Note: These dates will remain same unless government extends them.

Steps of ITR Filing Online for Section 8 Company

Income Tax Return Filing (ITR Filing) for a section 8 Company includes a number of steps. It can be hectic for section 8 companies to file the form ITR 7 so you can seek the expertise of the ITR Filing consultants like Legal Pillers. Here are the steps that include in the process of online ITR Filing-

  • Step 1: Gather Necessary Documents

First of all you have to gather all the essential financial documents including audited financial statements, bank statements, donation receipts, receipts related to TDS, and all the other supporting documents related to the income and expenditure of the company.

  • Step 2: Select the Correct ITR

Section 8 companies have to file the ITR by using the form ITR 7. Select the ITR form carefully and understand the sections related to the financial data properly. Make sure that all the information is accurate.

  • Step 3: Compute Your Tax Liability

After that, you have to calculate the total income of the company including all the applicable exemptions and deductions as per the section 8. And then compute your tax liability.

  • Step 4: Prepare and Validate Your ITR

Then you have to fill the form ITR 7 online via e-filing portal of Income Tax Department. Also validate your form to make sure that all the mandatory fields have been filled accurately.

  • Step 5: Upload and Submit

After that you have to upload your ITR 7 along with all the requisite documents. At last submit your ITR electronically.

  • Step 6: Verification

After the successful submission, E- Verification of ITR 7 is the most crucial step. Your Income Tax Return will be incomplete until you verify it. You have the option to e – verify the ITR via Aadhaar OTP, Net banking, EVC i.e. Electronic Verification Code or by sending a physical copy of ITR to CPC Bengaluru. You can also verify your ITR 7 by using DSC i.e. Digital Signature Certificate. 

  • Step 7: Acknowledgement

At last after the completing the verification step, you will get an acknowledgement receipt from the Income Tax Department. It would be best to keep this receipt safely for your future reference.

Here are the lengthy steps include in the process to file ITR online. You have to follow these steps precisely to file Income Tax Return correctly. If you have any confusion you can easily search for the “CA near me for ITR Filing”.

Why Legal Pillers is best for ITR Filing Online for Section 8 Company?

Among the numerous options available in the market, Legal Pillers in the premier choice for online ITR Filing due to its simplicity, professionalism, and effectiveness. Here in this section we will tell you why Legal Pillers is the preferred option of section 8 company to file ITR.

  • Accuracy and Compliance 

With LegalPillers, you can trust that your tax returns will be accurate and compliant with current tax laws and regulations. The platform provides thorough guidance and checks to make sure that everything is in order.

  • Time and Cost Efficient

By using LegalPillers, you’ll save both time and money. The platform simplifies the filing process, saving your precious time. Moreover, our competitive price makes sure that you will get the best service with an affordable ITR Filing fees by CA.

  • Expert Support

If you ever have questions or need assistance, LegalPillers has a team of tax professionals ready to help. Our dedicated team will make sure that you will get the support you need to file your taxes correctly for your better financial future.

  • More Convenience

Income Tax Return Filing online with LegalPillers is exceptionally convenient. You can access the platform anytime, anywhere, from any device with an internet connection, eliminating the need of personal visits to tax offices.

  • Secure Data Handling

Your data security is a top priority for LegalPillers. We work with advanced encryption techniques so that your sensitive financial information will remain safe from unauthorized access.

  • Comprehensive Services

LegalPillers offers more than just tax filing. We provide a range of services as per all the tax-related needs of a section 8 company, from planning and advisory services to GST registration and compliance.

Here are the reasons why Legal Pillers is the top choice of section 8 companies for online ITR Filing. We will make sure about all the compliances of a section 8 company including filing ITR. With us, a section 8 company can file your taxes efficiently and confidently, knowing that their financial matters are in good hands.

 Final Words

It includes a number of steps and compliance with various regulations to file ITR online for section 8 companies. You can make sure about Income Tax Return Filing accurately and timely by understanding the requirements and following a systematic approach. For successful filing you can seek advice of experts like Legal Pillers. We will simplify the process of ITR Filing by maintaining proper records, complying with audit requirements, so that company can focus on its charitable objectives. Proper record keeping, timely compliance, and stay updated with the latest tax laws and regulations are the key to the successful filing of ITR 7 for section 8 company. Choose Legal Pillers as your trusted partner for an accurate Income Tax Return Filing for your organization.

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