What is ITR-7 ?
ITR-7 is a specific income tax return form designed for entities such as trusts, NGOs, charitable or religious institutions, political parties, research organizations, and universities. These entities file their returns under Sections 139(4A), 139(4B), 139(4C), and 139(4D) of the Income Tax Act.
It’s mainly used by organizations that claim exemptions on income earned from charitable or religious activities, political contributions, or other specified purposes.
Filing of ITR-7 is done online through the Income Tax e-filing portal and can be verified using a Digital Signature Certificate (DSC), Electronic Verification Code (EVC), Aadhaar OTP, or by submitting a signed physical copy.
Who Can File ITR-7?
The ITR-7 form is meant for persons or companies who must file returns under the following sections of the Income-tax Act, 1961:
Section 139(4A): For individuals or HUFs (Hindu Undivided Families) who are trustees of properties held under a trust or legal obligation for charitable or religious purposes.
Section 139(4B): For political parties required to file income tax returns.
Section 139(4C): For institutions or associations such as:
Scientific research associations
News agencies
Educational or medical institutions
Universities or similar organizations
Section 139(4D): For colleges or institutions (not covered under 139(4C)) that are not required to get their accounts audited.
Note: Charitable companies registered under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013 must also file ITR-7, not ITR-6.
Who Cannot File ITR-7?
Taxpayers not claiming exemptions under Sections 139(4A), 139(4B), 139(4C), or 139(4D) are not eligible to file ITR-7.
Simply put, if your income does not fall under these categories, you should not use ITR-7 for filing your return.
ITR-7 Filing Guide for Trusts & NGOs – AY 2025-26
The ITR-7 form is meant for trusts, NGOs, and other entities that earn income from properties used for charitable or religious purposes. It applies to properties held under a trust or legal obligation, either fully or partly.
Simply put, ITR-7 is for organizations or companies that must file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act.
In this guide, we’ll cover who needs to file ITR-7, how to file it online, and the key updates introduced for AY 2025–26.
Latest Update: CBDT Releases Revised ITR-7 Form for AY 2025–26
The Central Board of Direct Taxes (CBDT) has released the updated ITR-7 form for Assessment Year 2025–26 through Notification No. 46/2025 dated May 9, 2025.
This revised form reflects key amendments from the Finance Act, 2024, aimed at improving disclosure, accuracy, and transparency in tax reporting for trusts, NGOs, and institutions required to file ITR-7.
Key Changes in ITR-7 for AY 2025–26:
Capital Gains Split: Taxpayers must now report capital gains separately for transactions before and after July 23, 2024, based on the Finance Act, 2024 updates.
Share Buyback Losses: Capital losses on share buybacks are allowed only if the related dividend income is reported under Income from Other Sources (effective October 1, 2024).
Section 24(b) Deductions: New fields added for interest on borrowed capital, ensuring detailed reporting.
TDS Section Code Reporting: Taxpayers now need to mention the exact TDS section code in Schedule-TDS for better cross-verification.
Procedure for Filing ITR-7 f
Part A – General Information
This section is simple — just fill in the basic details of your entity such as:
Name of the trust/institution/company
PAN
Registered address and contact details
Date of formation and registration number
Make sure all details match your official registration records.
Part B – Computation of Total Income
Here, calculate the gross total income earned from all sources like:
Business or profession
House property
Other income (like interest or dividends)
Then, deduct eligible expenses and exemptions to arrive at the taxable income. Use the official instructions provided by the Income Tax Department for accuracy
Schedules – Detailed Reporting
ITR-7 includes various schedules based on the nature of your entity’s income and activities.
Common ones include:
Schedule OS: Income from other sources (like interest, dividends, etc.)
Schedule BP: Income from business or profession
Schedule HP: Income from house property
Schedule EI: Exempt income not included in total income
Additional schedules may apply, such as:
Schedule SI: Income from scientific research
Schedule F: Agricultural income
Uploading & Verification of ITR-7
- Upload the Form:
Log in to the Income Tax e-Filing portal and upload your completed ITR-7 form along with any required supporting documents. - Verify Your Return:
After uploading, you need to verify your return. You can do this in any of these simple ways:
Digital Signature (DSC): The most secure method.
EVC: Use the OTP sent to your registered mobile number or email.
Aadhaar OTP: Works if your Aadhaar is linked to your PAN.
ITR-V: If you don’t e-verify, just print and sign the ITR-V form for records.
3. Audit Reports (if applicable):
If your organization needs an audit under sections like 10(23C), 12A, or 92E, make sure the audit report is filed online before submitting the ITR.
4. Sending ITR-V (if not verified online):
Print and sign your ITR-V, then send it by ordinary post or speed post to:
Centralized Processing Centre (CPC), Income Tax Department, Bengaluru – 560500
Make sure it reaches within 120 days of e-filing.
5. Confirmation:
Once your ITR-V is received, you’ll get an acknowledgment email from the Income Tax Department.
Key Changes in ITR-7 for AY 2024-25
LEI: Required for transactions > ₹50 crore.
Audit & UDIN: Submit Form 10B/10BB acknowledgement & UDIN for audited entities.
Schedule J: Report corpus/loan applications after April 1, 2021.
Schedule VC: Anonymous donations > ₹1 lakh or 5% of total donations.
Schedule A: Donations to other trusts – applied income now 85%.
Part A-GEN: New options for claiming Section 10(23C)/13(10) benefits.
Schedule IE-1: Now covers 10(46A)/(46B); Section 10(22B) removed.
Form 10 Details: Indicate if Form 10 was filed and its date.
Residuary Clause: Report any other non-exempt income.
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