ITR-7 Filing Guide for FY 2024-25 (AY 2025-26): Trusts & NGOs under Section 139
The ITR-7 form is meant for entities—including companies, trusts, and institutions—whose income is derived from properties held for charitable or religious purposes. This includes those legally obligated to apply such income toward charitable or religious ends, either wholly or partly. ITR-7 is applicable to those required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. This guide outlines the eligibility criteria, step-by-step filing process, and key changes introduced for Assessment Year 2025–26.
What is ITR-7?
ITR-7 is a specialized income tax return form issued by the Income Tax Department of India for entities such as trusts, political parties, charitable or religious institutions, research bodies, universities, and other organizations that are required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. This form is primarily used by entities claiming exemption from tax on income derived from properties held for specified purposes.
The ITR-7 must be filed electronically and verified through one of the approved methods—Digital Signature Certificate (DSC), Electronic Verification Code (EVC), Aadhaar OTP, or by submitting a signed physical copy. Timely filing is essential to avoid penalties and ensure compliance.
Who is Eligible to File ITR-7?
Entities required to file under the following sections must use ITR-7 for AY 2025–26:
Section 139(4A): Individuals or Hindu Undivided Families (HUFs) acting as trustees of properties held under trust or legal obligation for charitable or religious purposes.
Section 139(4B): Political parties required to file returns as per this section.
Section 139(4C): Institutions such as scientific research bodies, news agencies, and those involved in medical, educational, or similar services, including certain universities and educational institutions.
Section 139(4D): Colleges and institutions (not covered under 139(4C)) that are not required to have their accounts audited.
Note: Charitable companies registered under Section 25 of the Companies Act, 1956, or Section 8 of the Companies Act, 2013 must file ITR-7, not ITR-6
Who Cannot File ITR-7?
ITR-7 is not applicable to taxpayers who do not fall under any of the exemption categories listed under Sections 139(4A), 139(4B), 139(4C), or 139(4D). Such taxpayers should use the appropriate form as per their income sources and filing requirements.
Are Any Documents Required?
No physical documents or attachments are required when filing the ITR-7 form. However, taxpayers must reconcile their tax records with Form 26AS (Tax Credit Statement) to ensure accuracy and consistency in reported tax credits before submission.
Due Date for Filing ITR-7 for AY 2025–26
Without Audit: July 31, 2025
With Audit Requirement: September 30, 2025
Timely filing based on the applicable due date is crucial to avoid penalties or interest under the Income Tax Act.
Structure of the ITR-7 Form: A Detailed Overview
The ITR-7 Form is systematically divided into three core sections to capture all relevant financial, income, and tax-related information for trusts, institutions, and other eligible entities:
1. Part A – General Information
Captures basic entity details such as:
Name and address
PAN
Registration details
Nature of activities
Filing section under the Income Tax Act (e.g., 139(4A), 139(4B))
2. Part B – Statement of Total Income and Tax Computation
This section summarizes:
Total income after all deductions and exemptions
Tax computation on such income
Tax liability, if any
3. Schedules – Supplementary Information
These provide detailed disclosures to support income, expenditure, and other tax-related computations. Below is a breakdown of key schedules in ITR-7:
Schedule Description Schedule-I Details of income accumulated or set aside under Section 11(2) or Sections 10(23C)/10(21) over the last 7 years. Schedule-D Deemed application of income under Explanation 1(2) to Section 11(1). Schedule-J Investment statement of all funds as on 31st March. Part A-BS Sources and application of funds as of year-end. Schedule-LA Income and expenditure details for political parties. Schedule-ET Receipt and payment statement for Electoral Trusts. Schedule-VC Disclosure of all voluntary contributions received. Schedule-AI Total income derived (excluding voluntary contributions). Schedule-ER Revenue expenditure applied for charitable/religious purposes. Schedule-EC Capital expenditure applied for charitable/religious purposes. Schedule IE-1 to IE-4 Detailed income and expenditure formats for various categories. Schedule-HP Income from house property. Schedule-CG Details of capital gains income. Schedule-OS Income from other sources. Schedule-OA Information on business or professional activity. Schedule-BP Profits and gains from business or profession. Schedule-CYLA Set-off of current year’s losses. Schedule-PTI Pass-through income from business trusts/investment funds. Schedule-SI Income taxed at special rates. Schedule-115TD Details of accreted income when trust loses exemption eligibility. Schedule-FSI Income accrued or received outside India. Schedule-TR Foreign tax relief claims. Schedule-FA Disclosure of foreign assets and income. Schedule-SH Shareholding in unlisted companies. Tax Payment Details
The form includes fields for:
Advance Tax and Self-Assessment Tax payments
TDS (Tax Deducted at Source) details (as per Forms 16A, 16B, 16C, 16D)
TCS (Tax Collected at Source) information
Procedure for Filing ITR-7 for AY 2025–2026
Filing the ITR-7 form for Assessment Year 2025–26 involves a step-by-step electronic process designed for entities such as trusts, institutions, and political parties. Below is a comprehensive guide to help you through each stage:
Step 1: Electronic Filing on the Income Tax Portal
Part A – General Information
Start by filling in the basic details of the entity:
Name of the entity
PAN
Registered address
Contact information
Filing section under the Income Tax Act
Ensure the information matches your registration and compliance records.
Part B – Computation of Total Income
Calculate the total income earned from various sources like:
Business or profession
House property
Other sources
Deduct eligible expenditures and claim applicable exemptions to determine the net taxable income.
Schedules – Detailed Disclosures
Various schedules must be filled based on the nature of income and operations. Key schedules include:
Schedule OS: Income from other sources (interest, dividends, etc.)
Schedule BP: Business or professional income
Schedule HP: Income from house property
Schedule EI: Exempt income details
Other Relevant Schedules: Depending on the nature of your entity (e.g., scientific research, agricultural income), fill out additional schedules like Schedule SI, F, or LA as applicable.
Tip: Refer to the latest instructions from the Income Tax Department to determine which schedules apply to your entity and ensure all data is reported accurately.
Step 2: Upload & Verify the Return
Uploading the Return
After completing the form:
Log in to the Income Tax e-Filing portal
Upload the filled ITR-7 form in XML format
Attach required supporting documents (scanned in prescribed format)
Verification Options
Choose one of the following to verify your return:
Digital Signature Certificate (DSC): Recommended for registered entities
Electronic Verification Code (EVC): OTP-based verification via registered mobile/email
Aadhaar OTP: If PAN is linked with Aadhaar
ITR-V Acknowledgment: If none of the above are used, download and sign the ITR-V form
Step 3: File Applicable Audit Reports
If your entity is required to submit audit reports under sections like:
10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via)
12A(1)(b)
92E
You must file these electronically before submitting the ITR-7.
Step 4: Submit Signed ITR-V (if not digitally verified)
Print the signed ITR-V acknowledgment
Send it via ordinary post or speed post to:
CPC, Income Tax Department, Bengaluru – 560500 (Karnataka)Make sure it reaches within 120 days from the date of e-filing
Step 5: Receipt Confirmation
Once the CPC receives your ITR-V, you’ll receive a confirmation email on your registered email ID. This marks the official completion of the filing process
Updates to ITR-7 for Assessment Year 2024–25
The Income Tax Department regularly revises ITR forms to align with changes in legislation and reporting standards. For Assessment Year (AY) 2024–25, several key updates have been made to the ITR-7 form, particularly affecting trusts, institutions, political parties, and other exempt entities. Below is a summary of the major changes:
1. Legal Entity Identifier (LEI)
Entities involved in financial transactions exceeding ₹50 crore, as per RBI guidelines, may now be required to disclose their LEI in the ITR-7 form.
2. Audit Report Acknowledgement & UDIN
Entities subject to audit must report:
The acknowledgment number of audit reports submitted via Form 10B or 10BB
The Unique Document Identification Number (UDIN) issued by auditors
Note: The timing for UDIN generation may not always align with the ITR filing deadline, as per ICAI guidance.
3. Schedule J – Corpus Application & Loan Repayment
New reporting requirements include:
Use of corpus funds
Repayment of loans
Focus is on amounts applied on or after April 1, 2021.
4. Schedule VC – Anonymous Donations
A new field has been introduced to report anonymous donations not liable to tax under Section 115BBC, i.e., those below ₹1 lakh or under 5% of total donations received.
5. Schedule A – Donations to Other Institutions
Entities must now disclose:
Donations made to other approved trusts or institutions
The portion of such donations considered as application of income
(Note: Only 85% of such donations are considered applied, as per Finance Act 2023.)
6. New Justification Options in Part A-GEN
Additional fields have been included to justify exemption claims under:
The 22nd proviso to Section 10(23C)
Section 13(10)
7. Schedule IE-1 – Extended Applicability
This schedule, which captures income and expenditure statements, now covers:
Section 10(46A) and Section 10(46B) exemptions introduced by Finance Act 2023
However, updates to ITR-7 may not yet fully reflect this legal requirement.
8. Removal of Section 10(22B)
All references to Section 10(22B) (which provided tax exemption for news agencies) have been removed following its repeal in the Finance Act 2023.
9. Part B-TI – Form 10 Reporting
Entities accumulating income under Sections 11(2), 11(5), or the third proviso to Section 10(23C) must now:
Confirm if Form 10 was filed with the Assessing Officer
Provide the date of filing, if applicable
10. Residuary Clause – Other Non-Exempt Income
A new field has been introduced in Part B-TI to report any income not exempt under the Income Tax Act that doesn’t fall under specific categories.
Note: Taxpayers and institutions are advised to regularly check the official Income Tax Department website for the latest notifications and form updates to ensure compliance.
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