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All About ITR Filing Online for Section 8 Company

Do you run a Section 8 company and want to know about ITR Filing online for your company? As we all know, Income tax return filing in India is essential for all entities, including section 8 companies. Income tax is the direct tax that the public has paid 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 Section 8 companies in order to maintain their finances properly. If you file ITR online, you can carry forward losses, claim tax deductions and refunds, and many more. For a successful ITR Filing for a Section 8 company, it will be better to connect with expert ITR Filing consultants.

Before moving ahead with ITR filing for a section 8 company, let’s have a look at 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 are established with the objective of promoting arts, commerce, education, science, and sport. Section 8 registrations will be done with the 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 a must for all entities, section 8 Company must meet some specific criteria to file the ITR 7 form-

  • The organization must have to be registered under section 8 of the Companies Act, 2013.
  • The 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 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 possesses a certificate under Section 80G must submit the statement of particulars of donation to the authority in each financial year via Form 10BD within the given frame of time. If you fail to file the form 10BD, it will attract hefty penalties. The deadline for 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) has to file Form 10 in order to claim the tax exemption on income that has been derived from the property held in the name of the trust. Any religious or charitable trusts & institutions have to file Form 10 to-

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

Trusts must have file this form within the given time frame. 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 exemptions on certain incomes, including donations that you received for charitable purposes. But you have to meet the necessary conditions to file ITR as per the Income Tax Act.
  • A Section 8 company is required to pay comparatively less stamp duty.
  • As per Section 80G, donors can claim a tax rebate of 50% on the donations they make 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 Companies, trusts, charitable institutions, political parties, and educational institutions, must file the form ITR 7 to report their income, deductions, and tax liabilities. ITR 7 is specifically made for the entities that 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 in 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 the 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 for auditing for Section 8 Company, then the ITR Filing last date will be July 31st, 2024

Note: These dates will remain the same unless the 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 are included 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 section 8. And then compute your tax liability.

  • Step 4: Prepare and Validate Your ITR

Then you have to fill out the form ITR 7 online via the e-filing portal of the 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 the 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 completing the verification step, you will get an acknowledgement receipt from the Income Tax Department. It would be best to keep this receipt safe for your future reference.

Here are the lengthy steps included 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 is Legal Pillers Best for ITR Filing Online for Section 8 Companies?

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 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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