ITR Form 7 for AY 2025-26: Key Updates for Trusts, Institutions & Political Parties

ITR Form 7

ITR Form 7 for AY 2025-26: Key Updates for Trusts, Institutions & Political Parties

ITR Form 7

The Central Board of Direct Taxes (CBDT) has officially notified Income Tax Return (ITR) Form 7 for the Assessment Year (AY) 2025-26 through Notification No. 46/2025 dated 9th May 2025. The amendments form part of the Income-tax (Eighteenth Amendment) Rules, 2025, which take effect from April 1, 2025.

Who Should File ITR Form 7?

ITR Form 7 is to be furnished by persons — including companies — that are required to file returns under any of the following provisions of the Income-tax Act, 1961:

  • Section 139(4A) – Income of charitable/religious trusts

  • Section 139(4B) – Income of political parties

  • Section 139(4C) – Income of specific institutions (e.g., research associations, universities)

  • Section 139(4D) – Income of universities, colleges, or institutions not covered under other provisions

This form is primarily applicable to charitable trusts, political parties, educational institutions, research institutions, and certain notified entities.

How to File ITR-7?

ITR-7 must be filed electronically via the Income Tax Department’s e-Filing portal www.incometax.gov.in, and verified using any one of the following methods:

  • Digital Signature Certificate (DSC)

  • Electronic Verification Code (EVC)

  • Aadhaar-based OTP

  • By sending duly signed paper Form ITR‐V – Income Tax Return Verification Form by speed post only to CPC at the following address- Centralized Processing Centre, Income Tax Department, Bengaluru- 560500, Karnataka.

ITR Form 7

Special Note for Political Parties

Political parties must mandatorily submit the return through the digital verification methods (DSC, EVC, or Aadhaar OTP). Submission via physical ITR-V is not permitted for these entities.

Audit Report Filing Requirements

Entities required to furnish an audit report under the following sections are mandated to file the audit report electronically, at least one month prior to the due date of filing the return under Section 139(1):

  • Sections 10(23C)(iv), (v), (vi), (via)

  • Section 12A(1)(b) (for trusts registered under Section 12AB)

  • Section 92E (for international or specified domestic transactions)

Read More: Income Tax Filing 2025: Key Changes Introduced in ITR Forms for FY 2024-25

The introduction of ITR Form 7 for AY 2025-26 streamlines the compliance process for institutions and entities under special tax regimes. Timely and accurate filing, including audit reports, is critical to avoid penalties and ensure tax-exempt status (where applicable). Entities falling under the specified categories must carefully review the form and prepare their filings in line with the new requirements.

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Income Tax Filing 2025: Key Changes Introduced in ITR Forms for FY 2024-25

Income Tax Filing 2025: Key Changes Introduced in ITR Forms for FY 2024-25

The Central Board of Direct Taxes (CBDT) has notified the new Income Tax Return (ITR) forms for e-filing for the Financial Year 2024-25 (Assessment Year 2025-26). Several important changes have been introduced this year across ITR-1 to ITR-6, aimed at simplifying compliance and enhancing reporting transparency.

Here’s a comprehensive overview of the key changes in each ITR form:

1. ITR-1 (Sahaj) and ITR-4 (Sugam): Expanded Eligibility & Enhanced Reporting

What’s New:

  • Capital Gains Inclusion: Taxpayers can now file ITR-1 or ITR-4 even if they have long-term capital gains (LTCG) under Section 112A, provided the gains do not exceed ₹1.25 lakh and there is no carry forward or brought forward loss.

  • Improved Deduction Details: New fields introduced to capture specific deductions claimed under various sections of the Income Tax Act.

  • Detailed TDS Reporting: The Schedule-TDS will now capture the provision under which TDS is deducted.

itr

2. ITR-2: Capital Gains and Asset Reporting Enhancements

Key Highlights:

  • Capital Gains Segregation: A new split has been introduced to report capital gains before and after July 23, 2024, in line with changes made by the Finance Act, 2024.

  • Buyback Loss Adjustments: Capital loss from share buyback is now permitted if the corresponding dividend income is reported under ‘Income from Other Sources’ (applicable post October 1, 2024).

  • Asset & Liability Threshold Raised: Individuals with total income exceeding ₹1 crore must now provide asset and liability details.

  • Enhanced Deduction Reporting: Improvements in how deductions under Section 80C and Section 10(13A) are captured.

3. ITR-3: Capital Gains Rationalisation

Updated Aspects:

  • Rationalisation of Holding Periods: Holding periods for certain asset classes have been modified.

  • Capital Gains Tax Rates Streamlined: Changes made to LTCG and STCG rates for better consistency and ease of computation.

  • Indexation Adjustments: Rules related to indexation of long-term capital assets have been fine-tuned.

4. ITR-5: Changes for Firms, LLPs, and Other Entities

Form Updates Include:

  • Capital Gains Split: Gains must now be reported distinctly before and after July 23, 2024, per Finance Act, 2024.

  • Buyback Loss Reporting: Allowed where dividend income is declared as ‘Other Sources’ (applicable post October 1, 2024).

  • New Section Included: Section 44BBC, which deals with income from the cruise business, has been added.

  • TDS Disclosure Enhanced: Section codes under which TDS is deducted must be reported in Schedule-TDS.

itr

5. ITR-6: Corporate Taxpayer Updates

Notified on: May 6, 2025

Major Changes:

  • Capital Gains Segregation: As with other forms, capital gains must be split around July 23, 2024.

  • Buyback Loss Provisions: Applicable similar to ITR-2 and ITR-5 post October 2024.

  • Section 44BBC: Income from cruise business now included for disclosure.

  • Schedule BP (Business Profits): As per Rule 10TIA, profits from raw diamond sales must be at least 4% of gross receipts.

  • Home Loan Interest Deduction: Deductions under Section 24(b) (interest on housing loan) are now explicitly captured.

  • Schedule-TDS: Reporting of TDS section codes made mandatory.

Read More: ITR Filing Update: ITR-6 Form for Companies Now Notified

The 2025 ITR forms reflect the government’s continued focus on data precision, expanded eligibility, and compliance streamlining. Taxpayers and professionals must familiarize themselves with these changes to ensure accurate and timely filing.

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ITR Filing Update: ITR-6 Form for Companies Now Notified

ITR-6

ITR Filing Update: ITR-6 Form for Companies Now Notified

ITR-6

The Central Board of Direct Taxes (CBDT) has officially notified Income Tax Return Form ITR-6, meant exclusively for companies not claiming exemption under Section 11 of the Income Tax Act (i.e., companies other than those engaged in charitable or religious activities).

This update comes as part of the government’s effort to streamline tax compliance and reporting for the financial year 2024-25 (Assessment Year 2025-26). The ITR-6 form enables companies to report income, claim deductions, and compute taxes payable under the applicable provisions.

🔍 Who Should File ITR-6?

ITR-6 is applicable to all companies registered under the Companies Act—excluding those claiming tax exemption under Section 11. It is primarily meant for private limited, public limited, and other domestic companies engaged in business or professional activities.

✅ Key Updates in ITR-6 for AY 2025-26

The newly notified ITR-6 form incorporates several updates aligned with recent amendments introduced in the Finance Act, 2024. According to details shared by the Income Tax Department, the key changes include:

  1. Capital Gains Reporting Enhanced

    • The Schedule-CG (Capital Gains) has been revised to segregate gains before and after July 23, 2024, reflecting the new provisions introduced in the Finance Act.

  2. Buyback Loss Allowance

    • From October 1, 2024, capital loss incurred on share buyback will be permitted only if the corresponding dividend income is disclosed under ‘Income from Other Sources’.

  3. Section 44BBC Referenced

    • A reference to Section 44BBC, which deals with income computation for cruise shipping businesses, has now been added.

  4. Change in Schedule BP (Business Profits)

    • As per Rule 10TIA, profits from the sale of raw diamonds must now be declared at a minimum of 4% of gross receipts.

  5. Deduction under Section 24(b)

    • Enhancements have been made to accurately capture interest deduction claims on borrowed capital for house property.

  6. TDS Reporting Streamlined

    • In Schedule-TDS, companies must now mention the TDS section code, allowing for more precise reconciliation.

📌 Other ITR Forms Already Notified

Prior to ITR-6, the Income Tax Department had already released the following ITR forms for FY 2024-25:

  • ITR-1 (Sahaj) and ITR-4 (Sugam) – Notified on April 29, 2025

  • ITR-3 – Released on April 30, 2025

  • ITR-5 – Issued on May 2, 2025

  • ITR-2 – Announced on May 3, 2025

ITR-6

🗓️ Important Filing Deadlines

  • July 31, 2025: Due date for non-audit companies

  • October 31, 2025: Due date for companies requiring audit

Businesses are advised to begin preparations early to avoid last-minute hassles and ensure timely and accurate compliance.

Read More: ITR-2 Form Update for AY 2025-26: Eligibility and Key Changes

With the notification of ITR-6, the complete set of ITR forms for FY 2024-25 is now available for filing. Companies must pay close attention to the new disclosures, especially regarding capital gains, buyback losses, and raw diamond sales, to avoid compliance risks.

For professional support in company taxation or filing ITR-6, consult an experienced tax advisor or chartered accountant.

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