ITR-7 Filing for FY 2024-25 (AY 2025-26): Step-by-Step Guide for Trusts & NGOs Under Section 139

 The ITR-7 form is specifically designed for companies and other persons who earn income from properties used for charitable or religious purposes. This includes properties held under trusts or legal obligations, whether in part or whole. In other words, the ITR-7 form can be used by persons, including companies, who are required to furnish returns under Section 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. This article covers the eligibility criteria, the procedure to file the ITR-7 form, and the changes made in the ITR-7 form for AY 2025-2026.

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Latest Update: CBDT Notifies Revised ITR-7 Form for AY 2025–26

The Central Board of Direct Taxes (CBDT) has notified the revised ITR-7 form for Assessment Year 2025–26 via Notification No. 46/2025 dated 09.05.2025. This updated form incorporates several key changes aligned with amendments introduced in the Finance Act, 2024, aimed at improving disclosure and tax reporting for trusts, institutions, and entities required to file ITR-7.

Key Changes in ITR-7 for AY 2025–26:

• Split in Schedule-Capital Gains: Taxpayers must now report capital gains separately for periods before and after 23.07.2024, reflecting the effective date of changes introduced in the Finance Act, 2024.
• Capital Loss on Share Buyback: A capital loss arising from share buyback transactions will now be allowed only if the corresponding dividend income is reported under ‘Income from Other Sources’, applicable from 01.10.2024.
• Updated Disclosure for Section 24(b) Deductions: The form now includes additional fields to capture specific deductions claimed under Section 24(b) related to interest on borrowed capital.
• Mandatory Reporting of TDS Section Codes: Schedule-TDS now requires taxpayers to mention the relevant TDS section code, ensuring precise identification and cross-verification of tax deducted at source.

 Below, we have attached the official CBDT notification regarding the new ITR-7 Form.

  

What is ITR-7?

ITR-7 is a specialised income tax return form prescribed by the Income Tax Department of India for entities such as trusts, political parties, charitable or religious institutions, research associations and universities required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D). It is used by entities claiming exemptions on income from properties held for charitable or religious purposes, political party earnings, or other specified categories. Filing is done electronically, with verification through methods like Digital Signature Certificate (DSC), Electronic Verification Code (EVC), Aadhaar OTP, or submission of a signed physical form. Taxpayers must file the ITR-7 before the due date to avoid penalties and legal complications. 

Eligibility Criteria to File ITR7

The eligibility criteria to file ITR7 for the Assessment Year 2025-2026 are as follows: ITR-7 form is to be filed by persons, including companies, who are required to furnish returns under the following section:

• Section 139(4A) of the Income-tax Act: Individuals or Hindu Undivided Families (HUFs) who are trustees of properties held under a trust or legal obligation for charitable or religious purposes.
• Section 139(4B) of the Income-tax Act: Political parties that are required to furnish income tax returns under Section 139(4B) of the Income-tax Act.
• Section 139(4C) of the Income-tax Act: Institutions or associations that are required to furnish income tax returns under Section 139(4C) of the Income-tax Act. This includes scientific research associations, news agencies, associations or institutions providing medical, educational, or similar services, and certain universities or educational institutions.
• Section 139(4D) of the Income-tax Act: Colleges or institutions that must furnish income tax returns under Section 139(4D) of the Income-tax Act. This refers to colleges or institutions other than those mentioned in Section 139(4C), which are not required to get their accounts audited.

Note: It's important to note that a charitable company incorporated under Section 25 of the Companies Act, 1956, or Section 8 of the Companies Act, 2013, should use ITR-7 and not ITR-6 for filing their income tax returns.

Who is Not Eligible to File ITR 7 Form Online?

Taxpayers who are not claiming exemption under Section 139 (4A), Section 139 (4B), Section 139 (4C), or Section 139 (4D) are not required to file ITR-7.

• The ITR-7 form is specifically for taxpayers falling under these exemption categories.
• Taxpayers not fall under these categories are not eligible to file the ITR-7 form.

No Documents Required

No supporting documents are required to be attached while filing the ITR-7 form. Taxpayers are advised to reconcile the taxes deducted or collected on their behalf with the information provided in their Tax Credit Statement, known as Form 26AS. It is essential to ensure that the tax credits mentioned in Form 26AS match the taxpayer's records before filing the ITR-7 form.

Due Date for Filing ITR 7 Form

The last date for filing the ITR-7 form varies based on the audit requirements of the accounts. The due date for filing the ITR-7 form without audit is typically July 31 of the assessment year. However, if the taxpayer's accounts require auditing, the due date for filing the ITR-7 form is extended to September 30 of the assessment year. Taxpayers need to be aware of the applicable due date and ensure the timely filing of the ITR-7 form to avoid any penalties or consequences.

What is the Structure of the ITR-7 Form?

The ITR-7 Form is structured into three main sections:

• Part A – General Information
• Part B – Statement of Total Income and Tax Computation
• Schedules – Supporting details for various types of income, expenditures, and tax computations

Below is a detailed breakdown of the schedules included in the ITR-7 Form:

Schedule	Description
Schedule-I	Details of amounts accumulated or set apart under Section 11(2) or provisions of Section 10(23C)/10(21) read with Section 35(1) in the past 7 financial years.
Schedule-D	Provides details of deemed application of income under Explanation 1(2) to Section 11(1).
Schedule-J	Statement showing the investment of all funds of the trust or institution as on the last day of the previous year.
Part A-BS	Details of Application and Sources of Funds as of 31st March 2022.
Schedule-LA	Applicable to political parties – provides specific details about their income and expenditure.
Schedule-ET	Applicable to Electoral Trusts – details of receipts and disbursements.
Schedule-VC	Disclosure of all voluntary contributions received by the entity.
Schedule-AI	Total income derived during the year excluding voluntary contributions.
Schedule-ER	Revenue account – amount applied to charitable or religious purposes in India.
Schedule-EC	Capital account – amount applied to charitable or religious purposes in India.
Schedule IE-1 to IE-4	Income and expenditure statements as per the applicable format.
Schedule-HP	Income from house property.
Schedule-CG	Capital gains income details.
Schedule-OS	Income from other sources.
Schedule-OA	General business or profession information.
Schedule-BP	Profits and gains from business or profession.
Schedule-CYLA	Set-off of current year’s losses against income.
Schedule-PTI	Pass-through income from business trusts or investment funds (Section 115UA/115UB).
Schedule-SI	Income chargeable to tax at special rates.
Schedule-115TD	Accreted income as per Section 115TD (when a trust ceases to be eligible for exemption).
Schedule-FSI	Income accruing or arising outside India.
Schedule-TR	Tax relief claimed for taxes paid outside India.
Schedule-FA	Foreign Assets and income from foreign sources.
Schedule-SH	Shareholding details in unlisted companies.
Part B-TI	Computation of total income.
Part B-TTI	Computation of tax liability on total income.

Tax Payment Details

The form also includes sections to declare the following tax payment details:

• Advance Tax and Self-Assessment Tax payments.
• TDS (Tax Deducted at Source) – as per Forms 16A, 16B, 16C, and 16D.
• TCS (Tax Collected at Source) – details of tax collected from the entity.

Here is the sample ITR-7 form for your reference,

Procedure for filing ITR7 for AY 2025-2026

To file the ITR7 for Assessment Year 2023-2024, follow the procedure below:

Electronic Filing

Filing the ITR-7 form electronically involves several crucial steps. Here's a detailed breakdown to guide you through the process:

1. Part A - General Information: This section is fairly straightforward. Enter the entity's name, PAN, registered address, contact details, and other basic information as per your registration documents.
2. Part B - Computation of Total Income: This section requires calculating the entity's gross total income from various sources (business, profession, house property, etc.). You'll then deduct allowable expenses and claim exemptions to arrive at the taxable income. Refer to the official instructions for guidance
3. Schedules: ITR7 includes various schedules for reporting specific income sources and claiming exemptions. Here's a breakdown of some crucial schedules:
   • Schedule OS: Report income from a specified business or profession (if applicable).
   • Schedule BP: Detail income from a business or profession carried on by the entity.
   • Schedule HP: Report income derived from house property owned by the entity.
   • Schedule EI: Report income from other sources, such as interest income, dividend income, etc.
   • Additional Schedules: Depending on the nature of your entity's activities, you might need to fill out additional schedules like Schedule SI for income from scientific research, Schedule F for income from agriculture, etc.

Important Note: Carefully review the Income Tax Department's instructions to determine which schedules are relevant to your entity and ensure accurate reporting in each section.

Uploading & Verification

• Upload ITR-7 and Supporting Documents: Once you've completed the ITR-7 form, upload it electronically on the e-filing portal. You'll also need to upload scanned copies of all supporting documents in the designated format.
• Verification: The final step involves verifying the uploaded information. You can choose one of the following methods for verification:
  • Digital Signature Certificate (DSC): If your entity possesses a DSC, you can use it for a digital signature, providing the highest level of security.
  • Electronic Verification Code (EVC): This method involves the Income Tax Department sending a one-time password (OTP) to your registered mobile number or email address for verification.
  • Aadhaar OTP: If you have linked your Aadhaar card with your PAN, you can utilize the Aadhaar OTP method for verification
• Form ITR-V: After successful verification, you'll receive an acknowledgement form (ITR-V) with a Document Identification Number (DIN). You can download and print the ITR-V for your records.

Audit Reports

If applicable, electronically file audit reports under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 12A(1)(b), 92E before filing the income tax return.

ITR-V Submission

After filing the ITR-7 form Print Form ITR-V. Send the signed ITR-V to the Processing Centre, Income Tax Department, Bengaluru- 560500 (Karnataka) via ordinary post or speed post. Ensure the ITR-V reaches the center within 120 days of the e-filing date.

Receipt Confirmation

The confirmation of ITR-V receipt at the Centralized Processing Centre will be sent to the registered e-mail ID associated with the e-Filing account. It is essential to follow these steps accurately and within the specified timelines to complete the filing process for ITR-7.

Changes made in the ITR-7 for AY 2024-2025

The Income Tax Department periodically updates the ITR forms to reflect changes in tax laws and reporting requirements. The following are some of the key changes introduced in the ITR-7 form for the Assessment Year (AY) 2024-2025:

• Legal Entity Identifier (LEI): Entities with an LEI may be required to furnish it in the ITR-7 form. This applies to transactions exceeding Rs. 50 crores (as per RBI regulations).
• Audit Report Acknowledgement and UDIN: Entities undergoing tax audits must provide the acknowledgement number of the audit report filed in Form 10B/10BB along with the Unique Document Identification Number (UDIN). It's important to note that there might be a discrepancy between the ITR filing deadline and UDIN generation timeframe as per ICAI guidelines.
• Schedule J: Reporting details regarding applications made from corpus and loan repayments during the year. The new focus is on applications made after April 1, 2021.
• Schedule VC: A new column to report anonymous donations not taxable under Section 115BBC (exemption applies when exceeding Rs. 1 lakh or 5% of total donations).
• Schedule A: Disclosing details of donations made to other registered/approved trusts or institutions, including the percentage considered as application of income (reduced to 85% by the Finance Act 2023).
• Computation of Income Details: New reasoning options have been added in Part A-GEN for claiming benefits under the twenty-second proviso to Section 10(23C) or Section 13(10).
• Schedule IE-1 Extension: This schedule, used for reporting income and expenditure statements, now applies to entities with income exempt under Sections 10(46A) and 10(46B) (introduced by Finance Act 2023). However, there might be a discrepancy between the legal requirement to file and the current ITR-7 obligation due to a lack of consequential amendments.
• Schedule IE-1 Omission: The reference to Section 10(22B) (exemption for news agencies) has been removed due to its omission in the Finance Act 2023.
• Form 10 Filing Details (Part B-TI): When accumulating income under Sections 11(2) and 11(5) or the third proviso to Section 10(23C), the ITR-7 now requires reporting whether Form 10 was filed with the Assessing Officer and the filing date (if applicable).
• Residuary Clause (Part B-TI): A new column has been added to report any other income not exempt under the Income Tax Act.

Note: It's crucial to stay updated on the official Income Tax Department website for confirmed changes

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Other ITR-related articles

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• ITR-2 return filing
• ITR-3 return filing
• ITR-4 return filing
• ITR-5 return filing
• ITR-6 return filing

FAQs

1. What is ITR-7?

ITR-7 is the Income Tax Return form designed for filing by persons including companies who are required to furnish returns under Section 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) of the Income Tax Act. This includes trusts, political parties, charitable institutions, colleges, and universities.

2. Who Needs to File ITR-7?

The following entities are required to file ITR-7:

• Persons in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes.
• Political parties.
• Educational institutions.
• Scientific research associations.
• News agencies.
• Hospitals.
• Any institution referred to in section 10(23C)(iv), (v), (vi) or (via).

3. What is the Income Tax Return Form 7?

Income Tax Return Form 7, or ITR-7, is a form prescribed by the Income Tax Department for specific categories of taxpayers in India, primarily those including companies who are required to furnish returns under Section 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) of the Income Tax Act.

4. Which ITR Should Be Filed for a Trust?

Trusts must file ITR-7. This form is specifically designed for trusts, charitable institutions, and similar entities that claim exemptions under the Income Tax Act.

5. What is the Time Limit for an Updated Return?

An updated return, under Section 139(8A), can be filed within 24 months from the end of the relevant assessment year.

6. How Do I File My Tax Return with ITR-7?

To file your tax return with ITR-7, you must use the online filing method on the Income Tax Department's e-filing portal. Ensure you have all necessary documents, such as financial statements, audit reports (if applicable), and relevant certificates.

7. What is Schedule A of ITR-7?

Schedule A of ITR-7 is used to provide details of the corpus donations received by the institutions or trusts. It requires a detailed account of the donations, including the name and address of the donor and the amount received.

8. What is the Last Date for ITR-7?

The due date for filing ITR-7 is usually October 31st of the assessment year if the assessee is required to get their accounts audited. For those not requiring an audit, the due date is July 31st of the assessment year.

9. What is the Penalty for Filing ITR 7 Late?

The penalty for filing ITR-7 late can be up to ₹5,000 if filed after the due date but before December 31st of the assessment year. The penalty increases to ₹10,000 if filed after December 31st. For small taxpayers with income up to ₹5 lakh, the penalty is limited to ₹1,000.

About the Author

RENU SURESH
Renu Suresh is a proficient writer with a knack for turning intricate legal concepts into clear, actionable advice. Her articles empower entrepreneurs by providing the knowledge they need to navigate the complexities of business laws, ensuring they can start and manage their businesses effectively.

Updated on: May 14th, 2025