ITR-7 Form: Applicability, Due Dates & Filing Guide for FY 2024-25

Income tax filing is essential for every taxpayer in India. But what’s more important is to know which type of ITR form you need to file.

Various types of taxpayers, such as individuals, companies, and trusts, have to file different forms depending on the nature of the income they generate.

ITR-7 is one such form that is both very important and confusing to many people. It is designed to be used by institutions, trusts, and political parties that have specific reporting obligations under the Income Tax Act. In case you are linked with a charitable organization, research body, or even a political party, it is important to learn ITR-7 to remain compliant.

In this blog, we will discuss all the details you need to know about ITR-7, such as eligibility, due dates, recent modifications, and filing procedure.

What is ITR-7 Form?

ITR-7 is for entities that are required to file returns under specified sections of the Income Tax Act, 1961.

In simple terms, ITR-7 is for organizations that do not focus on personal or commercial profit, but still need to disclose their income and claim exemptions as per law. For example, trusts, political parties, NGOs, etc.

Who is required to file ITR 7?

ITR-7 applicability can be explained as follows:

• Charitable or Religious Trusts (Section 139(4A)): Any entity that receives income from assets held for charitable or religious purposes must file ITR-7. For example, a charitable trust running a free school or hospital.
• Political Parties (Section 139(4B)): Political parties are required to file ITR-7 if their income (before applying exemptions under Section 13A) exceeds the basic exemption limit.
• Research Institutions, News Agencies, and Funds (Section 139(4C)): Includes universities, hospitals, and institutions claiming exemption under Section 10. For example, a scientific research association or a news agency claiming tax exemptions must file ITR 7.
• Colleges and Universities (Section 139(4D)): Even if such institutions are not required to provide income/loss reports under other provisions, they must file ITR 7.
• Business Trusts (Section 139(4E)): Business trusts not filing returns under any other section are covered here.
• Investment Funds (Section 139(4F)): Investment funds under Section 115UB must file ITR-7, though they are not required to furnish returns under any other provision.

ITR-7 Latest Updates

For FY 2024-25, the Central Board of Direct Taxes (CBDT) has made some important changes to the ITR-7 form.

Below are the updates mentioned:

1. Capital Gains Split

• Capital gains now need to be reported separately for transfers made before or after 23rd July 2024.

2. Buyback Loss Reporting

• Starting 1st October 2024, taxpayers can claim losses from share buybacks, but only if they also report the related dividend income under Income from Other Sources.

• A new field has been added to capture such losses in the Capital Gains Schedule.

3. TDS Section Reporting

Taxpayers must specify TDS sections in the “Details of TDS Deducted” schedule to improve accuracy and reconciliation.

4. Home Loan Interest Disclosure (u/s 24)

• More detailed reporting is required while claiming deductions on home loan interest.

These changes aim to make disclosures more transparent and prevent misuse of tax provisions.

Ways to File ITR-7

As a taxpayer, you can file ITR in several ways depending on your comfort:

1. E-Filing via Income Tax Portal: It is the most common and preferred method. You can log in to the Income Tax Department’s e-filing website and fill out the ITR-7 form from there.
2. Using Tax Software: There are many third-party income tax software solutions available that make ITR-7 filing easier. You also get step-by-step assistance with many of the software programs to reduce the chances of errors.
3. Offline Submission (Less Common): You can also fill out the form offline by downloading it from the website. After filing it manually, you can submit it at the Income Tax Office. But this submission is rarely used as it is time-consuming.
4. Through Tax Professionals: Large organizations mostly hire Chartered Accountants or tax experts to prepare and file ITR 7 on their behalf. It results in more accurate filing as the experts are involved in the process.
5. Authorized E-Filing Service Providers: There are also many e-filing service providers who help institutions to file ITR-7.

Who cannot file ITR-7?

• Employees who get income from salary, pension, or allowances cannot file ITR-7. Instead, they can go for ITR-1 or ITR-2.
• Business, startups, or practicing professionals
• Companies, LLPs, or partnership firms that earn from business or trading. They can generally file ITR-5 or ITR-6.
• The ones who earn from capital gains or house property
• Entities that do not fall under the specific categories under Sections 139(4A)–(4F)

Last Thoughts

Summarizing the blog, while other types of ITR forms cater to individuals or businesses, it is made for special entities like NGOs, trusts, charity institutes, or political parties. You must file the form on or before the due date to avoid any late charges and maintain proper compliance.

Since this ITR form has multiple sections of the Income Tax Act, it is advised to properly check the eligibility criteria before you file it. Also, staying updated with the latest changes in every ITR form will ensure smooth filing without errors.

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