CBDT Notifies New ITR-7 Form for AY 2025-26

Last updated: 12 May 2025

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Quick Summary

The Central Board of Direct Taxes (CBDT) has introduced a revised Income-tax Return Form ITR-7, applicable for the Assessment Year 2025-26 from April 1, 2025. This updated form is designed for entities such as charitable trusts, religious institutions, and political parties that claim tax exemptions. The new format includes enhanced disclosure requirements concerning foreign contributions, registrations, and compliance with exemption conditions, aligning with amendments from the Finance Act, 2024.

The Central Board of Direct Taxes (CBDT) has notified the amended Income-tax Return Form ITR-7 through Notification No. 46/2025, published in the Gazette of India on May 9, 2025. The changes will come into effect from April 1, 2025, and are applicable for the Assessment Year 2025-26.

Issued under the powers conferred by section 295 read with section 139 of the Income-tax Act, 1961, the revised form replaces the existing version of ITR-7 in Appendix II of the Income-tax Rules, 1962. This form is meant for entities such as charitable trusts, religious institutions, political parties, research associations, and other institutions that claim exemption under various sections of the Income-tax Act including section 11, 12, 10(23C), and 13A.

Key Highlights of the New ITR-7

The new format aligns with amendments introduced in the Finance Act, 2024.
It includes enhanced disclosure requirements related to:

Foreign contributions
Registration under different laws (like FCRA, SEBI)
Compliance with conditions of tax exemptions

Fields have been expanded for reporting voluntary contributions, accumulated income, and application of funds under various clauses of Section 11 and 12.
Additional compliance checks have been introduced for specified violations under Section 13, which could lead to denial of exemption.

This move is aimed at improving transparency and ensuring that the tax-exempt entities maintain strict adherence to the conditions under the Act. Entities required to file ITR-7 must now align their accounting and reporting systems with the newly notified form.

Who Needs to File ITR-7?

The ITR-7 form is applicable for:

Trusts and institutions claiming exemption under Section 11 or 12
Political parties under Section 13A
Research associations and universities under Section 10(21) and 10(23C)
Other institutions specified under clauses of Section 10

Tax professionals and organizations falling under these categories are advised to review the new structure carefully and update their tax filing procedures accordingly.

FAQ :

The new ITR-7 form is a revised income tax return form notified by the CBDT for entities like trusts, political parties, and research associations claiming tax exemptions.

The new ITR-7 form is applicable from April 1, 2025, for the Assessment Year 2025-26.

Entities such as trusts and institutions claiming exemption under Section 11 or 12, political parties under Section 13A, research associations, and universities under Section 10(21) and 10(23C) need to file the ITR-7 form.

The new form includes enhanced disclosure requirements for foreign contributions, registrations under different laws, compliance with tax exemption conditions, and expanded fields for reporting voluntary contributions and fund applications.

The revision aims to improve transparency and ensure that tax-exempt entities strictly adhere to the conditions set out in the Income-tax Act, aligning with amendments made in the Finance Act, 2024.

Attached File : 671907_24842_263035.pdf

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