ITR-7 is the Income Tax Return form used by entities claiming exemption under the Income Tax Act for income applied to charitable, religious, educational, or specified purposes.
It applies to organizations filing returns under sections:
👉 139(4A), 139(4B), 139(4C), 139(4D), and 139(4E)/4F.
🧑⚖️ Who Should File ITR-7?
| Eligible Entity Type | Section Applicable |
|---|---|
| Charitable/Religious Trusts | 139(4A) |
| Political Parties | 139(4B) |
| Scientific Research Institutions | 139(4C) |
| Universities/Educational Institutions | 139(4D) |
| Hospitals/Medical Institutions | 139(4D) |
| Investment Funds/Business Trusts | 139(4E) / 139(4F) |
| NGOs registered under Section 12A/80G | 139(4A) |
🚫 Who Cannot File ITR-7?
| Entity Type | Should File |
|---|---|
| Individuals/HUFs/Companies | ITR 1–6 based on income type |
| LLPs or Firms | ITR-5 |
| Entities with taxable business income (not exempt) | ITR-5 or ITR-6 |
📑 Documents & Information Required
✔ Registration Certificate (Trust/NGO/Section 12A/80G)
✔ PAN & Entity Information
✔ Income & Expenditure Statement
✔ Balance Sheet
✔ Donation Records (Form 10BD/10BE if applicable)
✔ Bank Account Details (pre-validated for refund)
✔ Audit Report (Form 10B/10BB if applicable)
✔ Form 26AS, AIS & TIS
🧠 Audit Requirements
Audit under Section 12A(1)(b) is mandatory if:
- Annual receipts exceed the prescribed threshold, OR
- Donations, grants, or trust-asset incomes require audit certification.
Audit must be uploaded before filing ITR-7.
⚙️ Step-by-Step: How to File ITR-7 Online
Step 1: Login to Income Tax Portal
- Visit: https://www.incometax.gov.in
- Login using PAN (as User ID) for the entity.
Step 2: Start Filing
- Go to e-File → Income Tax Return → Prepare and File Online
- Select Assessment Year
- Choose ITR-7
Step 3: Select Applicable Section
Select the correct section based on eligibility:
| Purpose | Section |
|---|---|
| Charitable/Religious organizations | 139(4A) |
| Political Parties | 139(4B) |
| Research/University/Educational entities | 139(4C)/139(4D) |
| Business/Investment Trusts | 139(4E)/139(4F) |
Step 4: Fill Details in Required Schedules
Schedules in ITR-7 may include:
| Schedule Name | Purpose |
|---|---|
| Part A | General organization details |
| Part B | Income applied, accumulated & tax computation |
| Schedule ER/EC | Exempt revenue/expenditure reporting |
| Schedule VC | Voluntary Contributions (donations received) |
| Schedule TDS/TCS | Claim tax credit |
| Assets/Liabilities | Trust balance sheet |
Step 5: Attach or Link Audit Reports
Upload or reference:
- Form 10B or Form 10BB
- Applicable approval certificates
These must be digitally signed prior to return submission.
Step 6: Validate & Review
- Check income, exemption claims, donations, and utilization percentages.
- Ensure AIS/TIS matches declared figures.
Step 7: Submit Return
Once validated, submit the form online.
Step 8: e-Verify the Return
Verification options:
| Method | Allowed |
|---|---|
| DSC (Digital Signature Certificate) | ✔ Mandatory for many entities |
| EVC (Email/Bank/Demat Verification) | ✔ Allowed in non-audit cases |
| Aadhaar OTP | ❌ Not applicable to all entities |
🔍 Post-Submission Checklist
- Download ITR acknowledgment
- Track status under Filed Returns
- Ensure donation reporting compliance under Form 10BD/10BE
💡 Best Practices
- Reconcile donations with Form 10BD submission before filing
- Maintain books, ledgers, donor proofs, and utilization records for at least 6 years
- Compute application of income vs accumulation clearly
- Ensure GST turnover reconciliation (if applicable)