ITR-7 Return Filing for Trusts,
NGOs & Political Parties (AY 2025–26)

Entities such as charitable trusts, religious institutions, NGOs, political parties, and scientific research bodies must file their income tax returns using Form ITR-7 if claiming exemptions under Sections 11, 12, 10(23C), or 13A of the Income Tax Act. Filing ITR-7 ensures legal compliance, transparency, and continued tax exemption status. This guide explains eligibility, process, documents, and compliance rules for AY 2025–26 in detail.

Income Tax Return-7

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Application For Income Tax Return

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ITR-3 Amendment Registration

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 Process of ITR-3 Amendment Registration 2025

STEP 1

  • Fill out the online form with your details.
  • Make the required payment to proceed.
  • Get Call for Further Information, Documents & Advice

STEP 2

  • Submit documents and information if requested.
  • Team will review and validate documents and information.

STEP 3

  • Creation of login credential.
  • Respond to any follow-up from the team.

STEP 4

  • Filing of an Application using the Credentials
  • Government Processing Time

STEP 5

  • Resolution of Queries if any, Raised via Authorities
  • Issuance of ITR-3 Registration on email.

Introduction to ITR-7

ITR-7 is a specialized income tax return form meant for entities such as charitable trusts, political parties, scientific research institutions, and educational or medical institutions. These organizations file returns under specific sections of the Income Tax Act to claim exemptions. This form ensures transparency in their financial activities and helps them remain compliant with tax regulations applicable to non-profit or public-benefit entities.

What is ITR-7

What is ITR-7 Form?

ITR-7 is used by entities required to file returns under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) of the Income Tax Act. It is primarily meant for institutions that are not profit-oriented and are entitled to claim income tax exemptions based on their social, political, charitable, or educational nature.

What is ITR-7 Form?

ITR-7 is used by entities required to file returns under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) of the Income Tax Act. It is primarily meant for institutions that are not profit-oriented and are entitled to claim income tax exemptions based on their social, political, charitable, or educational nature.

Who Should File ITR-7?

Entities that must file ITR-7 include:

  • Under Section 139(4A): Charitable or religious trusts claiming exemption under Sections 11 and 12.
  • Under Section 139(4B): Political parties with total income exceeding the exemption limit under Section 13A.
  • Under Section 139(4C): Institutions such as scientific research associations, news agencies, and hospitals eligible under Section 10(23C).
  • Under Section 139(4D): Universities, colleges, and other educational institutions not required to furnish returns under other provisions.
  • Under Section 139(4E): Business trusts.
  • Under Section 139(4F): Investment funds under Section 115UB.
Who Should File ITR-7

Who Should File ITR-7?

Entities that must file ITR-7 include:

  • Under Section 139(4A): Charitable or religious trusts claiming exemption under Sections 11 and 12.
  • Under Section 139(4B): Political parties with total income exceeding the exemption limit under Section 13A.
  • Under Section 139(4C): Institutions such as scientific research associations, news agencies, and hospitals eligible under Section 10(23C).
  • Under Section 139(4D): Universities, colleges, and other educational institutions not required to furnish returns under other provisions.
  • Under Section 139(4E): Business trusts.
  • Under Section 139(4F): Investment funds under Section 115UB.
When is ITR-7 Not Applicable

When is ITR-7 Not Applicable?

The ITR-7 form is not applicable for:

  • Individuals, HUFs, companies, or partnership firms.
  • NGOs or entities not claiming exemptions under Sections 11, 12, 13A, or 10(23C).
  • Organizations with purely business or professional income not covered under exempted categories.

Entities not covered under the aforementioned categories must use ITR-5 or other appropriate forms depending on their structure and nature of income.

When is ITR-7 Not Applicable?

The ITR-7 form is not applicable for:

  • Individuals, HUFs, companies, or partnership firms.
  • NGOs or entities not claiming exemptions under Sections 11, 12, 13A, or 10(23C).
  • Organizations with purely business or professional income not covered under exempted categories.

Entities not covered under the aforementioned categories must use ITR-5 or other appropriate forms depending on their structure and nature of income.

Eligibility Criteria for Filing ITR-7

An entity must file ITR-7 if it falls under any of the following categories specified in the Income Tax Act:

Section 139(4A)

1. Section 139(4A)

Charitable or religious trusts claiming exemption under Sections 11 and 12.

Section 139(4B)

2. Section 139(4B)

Political parties whose total income exceeds the basic exemption limit, without considering Section 13A benefits.

Section 139(4C)

3. Section 139(4C)

Institutions like:

  • ● Scientific research institutions
  • ● News agencies
  • ● Associations or institutions under Section 10(23A)/10(23B)
  • ● Hospitals and medical institutions under Section 10(23C)
Section 139(4D)

4. Section 139(4D)

Universities, colleges, and other educational institutions not required to furnish income/loss returns under other provisions.

Section 139(4E)

5. Section 139(4E)

Business trusts such as REITs and InvITs.

Section 139(4F)

6. Section 139(4F)

Investment funds referred to in Section 115UB (Alternative Investment Funds - AIFs).

These entities must file ITR-7 if they earn income liable to tax under Indian law and want to claim exemptions specific to their category.

Documents Required for ITR-7 Filing

To ensure accurate and timely filing of ITR-7, the following documents are essential for trusts, NGOs, political parties, and institutions:

1. PAN Card

of the entity

2. Registration Certificate

Under relevant laws (e.g., Societies Act, Trust Act, Section 8 Companies Act)

3. 12A & 80G Certificate

(if applicable)

4. Annual Report

Including audited Balance Sheet and Profit & Loss Account

5. Income and Expenditure Statement

For the relevant financial year

6. Details of Donors

(including PAN, amount donated, and mode of payment)

7. Utilization Certificate

Or fund utilization details

8. TDS Certificates (Form 16A)

If tax has been deducted

9. Bank Statements

For the financial year

10. Details of Grants and Foreign Contributions

If any (along with FCRA certificate)

11. Details of Activities

And nature of charitable/religious or political work

12. Proof of Investments or Assets Purchased

During the year

13. Books of Accounts and vouchers

In case of audit applicability

14. DSC (Digital Signature Certificate)

Of the authorized signatory for e-filing

Having these documents ready streamlines the filing process and ensures compliance with the Income Tax Department.

Step-by-Step Process to File ITR-7

Filing ITR-7 involves careful documentation and adherence to income tax regulations for exempt entities like trusts, NGOs, and political parties. Below is a simplified step-by-step guide:

1

Step 1: Gather Registration & Financial Records

Collect essential documents such as trust deed, 12A/80G certificates, audited financials, donation records, and other compliance proofs.

2

Step 2: Login to Income Tax Portal with DSC

Access the e-filing portal using your registered credentials and ensure the Digital Signature Certificate (DSC) is active for authentication.

3

Step 3: Select ITR-7 Form and Assessment Year

Choose the correct form (ITR-7) and select the applicable assessment year (e.g., AY 2025–26) to proceed with filing.

4

Step 4: Fill Entity, Income & Exemption Details

Enter organization details, income streams, exempt income, and donations received. Ensure correct categorization under applicable sections.

5

Step 5: Upload Audit Reports & Declarations

Upload mandatory documents such as Form 10B or Form 10BB audit reports, applicable declarations, and compliance certificates.

6

Step 6: Validate, Submit, and E-Verify with DSC

Verify all entries, validate the form, submit it online, and complete the filing process by e-verifying using the DSC.

Income Sources Covered Under ITR-7

The ITR-7 form is designed to report income of entities claiming exemption under sections like 11, 12, 13, or 10(23C) of the Income Tax Act. These incomes must be clearly classified to determine taxability or exemption.

Voluntary Contributions & Donations

These include funds received from individuals, corporates, or other entities in the form of donations, whether for a specific purpose (corpus donations) or general use. Under Section 12 of the Income Tax Act, voluntary contributions are treated as income but can be exempt if applied for charitable or religious purposes. Proper record-keeping of donor details and donation receipts is essential.

Grants and Government Funding

Many NGOs and institutions receive grants from the central or state governments, public sector undertakings, or international organizations. These are recognized as income and may be exempt if utilized as per the objects of the trust or institution. The utilization pattern and fund allocation must be disclosed clearly in the return.

Other Income (Rent, Interest, etc.)

This includes income from renting property, interest on savings and fixed deposits, dividends, and income from investments. While these are taxable in general cases, if used in line with the objectives of the institution and properly reported, they may be exempt under Section 11 or 10(23C).

Tax Deductions in ITR-7

Entities filing ITR-7 can claim various exemptions and deductions under the Income Tax Act, provided they fulfill the legal and procedural conditions. These deductions help lower taxable income or make it fully exempt when aligned with applicable provisions.

Section 11 & 12 – Income Exemptions

Section 11 provides exemptions to income derived from property held under trust, provided it's applied toward charitable or religious purposes in India. Section 12 includes voluntary contributions (other than corpus donations) as income, which can also be exempt if applied properly. Accumulation of income is allowed under certain limits, and any income not applied should be reported and justified.

deduction illustration

Section 13 – Conditions for Exemption

Section 13 outlines the conditions that must be fulfilled to retain exemption under Section 11 and 12. If any part of the income or property is used for the benefit of specified persons (like trustees or donors), the exemption may be denied. This section ensures that charitable funds are not misused for personal gain or non-charitable purposes.

Section 10(23C) – Specific Exemptions

This section applies to institutions like universities, educational institutions, and hospitals that meet specified criteria. If their annual receipts don’t exceed the prescribed limit or if they have approval from the prescribed authority, their income is fully exempt. They must maintain books, audit reports, and comply with the conditions laid out by tax authorities.

Audit & Compliance Requirements

Entities filing ITR-7 must adhere to specific audit and compliance norms under the Income Tax Act. These rules ensure transparency, accountability, and proper utilization of funds in line with their charitable or non-profit objectives.

Books of Accounts

Section 44AB – Tax Audit Applicability

Section 44AB mandates a tax audit if the total income of the trust or institution exceeds the maximum amount not chargeable to tax, or if it claims exemptions under Section 11 or Section 10(23C). The audit must be conducted by a qualified Chartered Accountant, and the audit report should be submitted in prescribed forms (10B/10BB) depending on the nature of the organization.

Tax Audit Requirement

Form 10B & Form 10BB Requirements

  • ● Form 10B is required for trusts and institutions claiming exemption under Sections 11 and 12.
  • ● Form 10BB applies to entities approved under Section 10(23C).

These audit forms must be electronically submitted along with the ITR-7 before the due date. The forms must contain financial statements, details of income application, accumulation, and specifics of transactions with related parties.

Presumptive Taxation

Maintenance of Books and Records

All trusts and institutions must maintain accurate and updated books of accounts, including cash books, ledgers, vouchers, donation registers, bank statements, and supporting documents for expenses and income. These records must be preserved for at least 6 years and should reflect a true and fair view of the financial position. Non-maintenance can lead to disqualification from exemptions and potential penalties.

Common Mistakes to Avoid

Filing ITR-7 can be complex due to the exemptions, audit requirements, and specific compliance rules applicable to trusts, NGOs, and similar entities. Avoiding common errors ensures smooth processing, prevents penalties, and safeguards your organization's credibility.

Here are the most common mistakes to avoid:

1. Incorrect Selection of ITR Form

Filing ITR-7 is only for specific entities like charitable trusts and political parties.

Using the wrong form can result in rejection or delayed processing.

2. Not Claiming Eligible Exemptions Properly

Many filers fail to disclose or document exemptions under Sections 11, 12, or 10(23C) properly.

Results in loss of tax benefits.

3. Missing Audit Reports (Form 10B/10BB)

Audit reports are mandatory.

Uploading the wrong form or failing to attach them with the ITR leads to non-compliance and loss of exemption.

4. Failure to Maintain Proper Records

Inadequate or poorly maintained books of accounts.

Can lead to audits, rejection of returns, and penalties.

5. Wrong PAN or Registration Details

Errors in PAN, registration number, or other identifying details.

May lead to mismatch issues and return rejection.

Center Illustration
6. Not Filing or Verifying Return on Time

Late filing or failure to e-verify with DSC (Digital Signature Certificate).

Attracts penalties and delays processing.

7. Incorrect Reporting of Voluntary Contributions

Contributions and donations not properly classified or documented.

Misreporting may raise compliance flags.

8. Overlooking Disclosure of Accumulated Income

Trusts must report accumulated income under Section 11(2).

Missing this can nullify exemption claims.

9. Not Updating Changes in Registration or Compliance

Updates in trust registration, objectives, or operations not reported.

Leads to discrepancies in ITR-7 filing.

10. Non-disclosure of Foreign Contributions (if any)

NGOs receiving foreign contributions not reporting under FCRA.

rules and reflect them accurately in the ITR to ensure dual compliance.

Avoiding these pitfalls helps maintain compliance, reduces the risk of scrutiny, and enhances the trust’s standing with donors and government agencies.

How Udyog Suvidha Kendra Helps You

Udyog Suvidha Kendra simplifies the complex ITR-7 filing process for trusts, NGOs, and political parties through expert guidance, end-to-end compliance support, and professional tax handling. From documentation to audit filing, we ensure accuracy, timely submission, and complete peace of mind.

1

Expert Filing Support for Trusts & NGOs

We specialize in handling ITR-7 returns for Section 8 companies, charitable and religious trusts, and political organizations. Our experts ensure proper disclosure of income, exemptions, and compliance with the Income Tax Act and related provisions.

2

Accurate Audit and Document Handling

Our team assists in preparing, reviewing, and uploading essential audit reports like Form 10B or 10BB. We ensure all financial records, exemption claims, and donation details are compiled, verified, and submitted correctly as per ITR-7 norms.

3

Timely Reminders for Renewals & Filing

We provide proactive alerts and reminders for due dates related to ITR-7 filing, audit submissions, trust registration renewals, and compliance requirements—ensuring you never miss a deadline or face penalties.

ITR-7 Registration FAQs

Who is required to file ITR-7?
ITR-7 is mandatory for entities such as charitable trusts, NGOs, political parties, and institutions claiming exemption under Sections 11, 12, 10(23C), or 13A of the Income Tax Act. These organizations must file if they receive donations or government grants.
The due date for filing ITR-7 for Assessment Year 2025–26 is 31st October 2025, if audit is applicable. For non-audited cases, the deadline is 31st July 2025. Timely filing is essential to avoid penalties and preserve tax exemptions.
Late filing attracts penalties under Section 234F—ranging from ₹1,000 to ₹10,000—based on annual income. Delayed filing may also impact tax exemption eligibility and donor credibility, especially for trusts and NGOs receiving substantial contributions.
Yes, political parties must file ITR-7 if they seek exemption under Section 13A of the Income Tax Act. They must maintain books of accounts, audit records, and donation details to qualify for exemptions and maintain transparency
Exemptions under Sections 11, 12, 13, and 10(23C) can be claimed by trusts, NGOs, and institutions if they follow conditions related to income application, record-keeping, and registration. Political parties may claim exemption under Section 13A.
Yes, audit under Section 44AB is mandatory if the total income exceeds the exemption limit. Entities must submit Form 10B or 10BB audit reports, depending on the nature and income of the organization.
Form 10B is the audit report for trusts and NGOs with gross receipts above ₹2.5 crores. Form 10BB is used for other specified institutions. These must be uploaded before ITR-7 submission for audit compliance.
You need registration certificates, PAN, audit reports, financial statements, income-expenditure accounts, details of donations received, and exemption proof under relevant Income Tax sections to file a valid ITR-7 return.
No. ITR-7 must be filed online using a Digital Signature Certificate (DSC) of the authorized signatory. Filing without DSC is not accepted by the income tax portal for trusts and political parties.
Yes, NGOs registered under 12A can claim income exemption, and those with 80G approval allow donors to claim tax deduction. These registrations must be valid and declared while filing ITR-7.
ITR-5 is for firms, LLPs, and AOPs not claiming exemptions under Sections 11 or 10(23C). ITR-7 is specific to entities like trusts, NGOs, and political parties claiming income tax exemptions under applicable sections.
Yes. If filed within the due date, a revised ITR-7 can be submitted before 31st December 2025 (for AY 2025–26). Corrections to audit reports or financial disclosures must be updated accordingly.
If the income is not applied for charitable or religious purposes as required under Section 11, the exemption may be denied. The unutilized income can be taxed unless valid accumulation or application clauses are followed.
Foreign donations are not taxable if used for permitted activities and reported under FCRA and Income Tax Act. Proper utilization, FCRA compliance, and disclosure in ITR-7 are essential for retaining tax benefits.
Udyog Suvidha Kendra provides end-to-end support—document review, exemption validation, audit filing, and final ITR-7 submission with DSC. We ensure timely compliance, minimize errors, and help your organization maintain tax-exempt status effortlessly.