The Income Tax Department has released the Excel utility for filing ITR-7 for the Assessment Year 2025-26. This makes all ITR forms for the current year available online or ready to download.

Who Should File ITR-7?

ITR-7 is a specific income tax return form applicable to certain entities in India. It is designed for organizations claiming tax exemptions under specific sections of the Income Tax Act, 1961. Entities required to file under sections 139(4A) to 139(4D) of the Income Tax Act, including trusts, political parties, charities, research bodies, and news agencies, must file ITR-7.

The main entities required to file ITR-7 include:

• Charitable or Religious Trusts: Individuals or entities receiving income from property held under trust or other legal obligations wholly or partly for charitable or religious purposes. This is applicable under Section 139(4A).
• Political Parties: A political party whose total income, before availing exemptions, exceeds the maximum amount not chargeable to income tax. This falls under Section 139(4B). If a political party does not file ITR-7 on time, they can lose 100% tax exemption under Section 13A, and their full income becomes taxable. Penalties under section 234F also become applicable.
• Scientific Research Institutions: Associations approved for scientific research purposes. This is covered by Section 139(4C).
• Universities, Colleges, and other Institutions: Entities referred to in sections 10(23C) and 10(21) of the Income Tax Act. This also falls under Section 139(4C).
• News Agencies.

Even if an organization earns no profit, it must file ITR-7 if it receives voluntary contributions, holds property for public purposes, or is exempt under any clause of Section 10.

How to File ITR-7

ITR-7 must be filed online using a digital signature. Alternatively, it can be filed by transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V. The Form ITR‐V Income Tax Return Verification Form should reach the Centralized Processing Centre within 120 days from the date of e‐filing the return.

Due Dates for Filing ITR-7

The due date for filing ITR-7 varies. For taxpayers not required to have their accounts audited, the due date is September 15th, 2025, for FY 2024-25. For taxpayers who are required to have their accounts audited, including companies, the due date is October 31st of the next financial year.

Key Updates in ITR-7 for AY 2025-26

The updated ITR-7 for AY 2025-26 includes changes to enhance transparency and streamline the filing process. These include new fields to capture detailed information on income claimed as exempt under various sections and a requirement to report capital gains. If a trust held unlisted equity shares at any time during the previous year, information about the name, type, PAN of the company, opening balance, shares acquired/transferred during the year, and closing balance must be furnished.