The amended Income-tax Return Form ITR-7 has been notified by the Central Board of Direct Taxes (CBDT) through Notification No. 46/2025, published in the Gazette of India on May 9, 2025. The amendment shall come into force on April 1, 2025, and will be applicable for the Assessment Year 2025-26.
Issued under section 295 read with section 139 of the Income-tax Act, 1961, the revised form substitutes the existing version of ITR-7 in Appendix II of the Income-tax Rules, 1962.
The purpose of this form is for entities like charitable trusts, religious institutions, political parties, research associations, and other institutions that claim exemption under diverse sections of the Income-tax Act, including sections 11, 12, 10(23C), and 13A.
Main Key Highlights of New ITR-7 Form
- It possesses enhanced disclosure provisions of:
- Foreign contributions
- Registration under different laws (like FCRA, SEBI)
- Compliance with the conditions of tax exemptions
- The new format aligns with amendments introduced in the Finance Act, 2024.
- Other compliance checks have been presented for designated offences u/s 13, which may be directed to the refusal of exemption.
- Fields have been extended for reporting voluntary contributions, accumulated income, and application of funds under various clauses of Sections 11 and 12.
The purpose of this is to rectify clarity and ensure the tax-exempt entities keep stringent compliance with the pre-requisites under the act. Entities should align their accounting and reporting systems with the newly notified form as mandated to submit ITR-7.
Who Must E-file Form ITR-7?
The ITR-7 form is applicable for:
- Political parties u/s 13A
- Research associations and universities u/s 10(21) and 10(23C)
- Trusts and institutions claiming tax exemption under section 11 or 12
- Additional institutions set under the clauses of section 10
Under such classes, tax professionals and organisations classified are recommended to analyse the new format and update their tax filing process accordingly.
