What is ITR-7?
ITR-7 is the Income Tax Return form for entities that are required to furnish returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. It is filed by trusts, NGOs, political parties, research associations, universities, hospitals, and other institutions that claim income tax exemption under specific provisions.
ITR-7 is specifically designed for entities whose income is exempted from tax under Sections 11, 12, 10(23C), 13A (political parties), 10(46) (government-notified entities), and similar provisions. It requires detailed disclosure of income, expenditure, application of funds, and compliance with the conditions of tax exemption.
Who Must File ITR-7?
| Entity Type | Section | Exemption Basis |
|---|
| Charitable / Religious Trusts & NGOs | Section 139(4A) | Income exempt under Section 11 & 12 (12A registered) |
| Political Parties | Section 139(4B) | Exempt under Section 13A |
| Research Associations, News Agencies, Hospitals, Universities | Section 139(4C) | Exempt under Section 10(21), 10(22B), 10(23A-F), 10(23C) |
| Universities, Colleges, Institutions (10(23C) approved) | Section 139(4D) | Income exempt under Section 10(23C) |
| Section 8 Companies (non-profit) | Section 139(4A) | 12A / 80G registered, income for charitable purposes |
| Nidhi Companies / Mutual Benefit Societies | Section 139(4D) | Section 10(23C) or similar provision |
Key Conditions for Claiming Exemption in ITR-7
- Valid 12A / 12AA registration certificate must be in force
- At least 85% of income must be applied towards charitable/religious purposes in India during the year
- Remaining income (up to 15%) can be accumulated for future use
- Income must NOT be applied for private benefit of trustees or their relatives
- If income is accumulated beyond 5 years, it becomes taxable
- Investment of accumulated funds must be in specified modes (Section 11(5))
Important Schedules in ITR-7
| Schedule | Purpose |
|---|
| Schedule I | Details of income and expenditure for charitable purposes |
| Schedule J | Statement of investments as per Section 11(5) |
| Schedule K | Details of author / founder / trustees / members of the entity |
| Schedule LA | Audit details (Form 10B / 10BB) |
| Schedule VC | Voluntary contributions received |
| Schedule IE-1 to IE-4 | Income & Expenditure details for different sections |
Mandatory Audit: Form 10B / 10BB
Charitable trusts and institutions with gross receipts exceeding ₹5 Crore must get their accounts audited by a CA and file Form 10B (Section 12A entities) or Form 10BB (Section 10(23C) entities) on the IT portal before filing ITR-7.
