Income Tax Return Filing Update for Excel Utility of ITR-7 for AY 2025-26 is now live and available for filing.
ITR-7 is a specific income tax return form for the Assessment Year (AY) 2025-26, applicable to certain entities in India. It’s used by charitable and religious trusts, political parties, and other specified institutions. The Income Tax Department of India has released the official ITR-7 form and is in the process of releasing the corresponding Excel utility. The due dates for filing vary based on the type of entity.
Who Should File ITR-7 for AY 2025-26? ✍️
ITR-7 is mandatory for individuals and companies who need to file returns under specific sections of the Income Tax Act. It applies to entities that claim exemptions under specific provisions. The main entities required to file ITR-7 include:
- Charitable or Religious Trusts: Persons who receive income from a property held under a trust or legal obligation, whether wholly or in part, for charitable or religious purposes.
- Political Parties: A political party whose total income before availing exemptions exceeds the maximum amount not chargeable to tax.
- Scientific Research Institutions: Associations that have been approved for scientific research purposes.
- News Agencies.
- Universities, Colleges, and other Institutions: Entities referred to in section 10(23C) and 10(21) of the Income Tax Act.
Key Changes in ITR-7 for AY 2025-26 🆕
The updated ITR-7 for AY 2025-26 incorporates several changes to enhance transparency and streamline the filing process. Some notable changes include:
- Reporting of Exempt Income: The form has introduced new fields to capture detailed information on income claimed as exempt under various sections.
- Capital Gains: There is a requirement to split capital gains based on the transfer date, specifically before or after July 23, 2024.
- Capital Loss on Share Buyback: From October 1, 2024, a capital loss from a share buyback can be claimed only if the corresponding dividend income is reported under the “Income from Other Sources” schedule.
- Deductions: More detailed disclosures are required for claiming deductions, such as interest on a home loan under section 24.
- Registration Details: Taxpayers must now provide information on their registration or approval details to claim an exemption.
Excel Utility for ITR-7 for AY 2025-26 💻
The Income Tax Department provides an Excel utility for offline filing of ITR forms.17 The utility allows taxpayers to fill out the form, generate a JSON file, and then upload it to the e-filing portal. For AY 2025-26, the department is releasing the utilities for all ITR forms, including ITR-7. The offline utility for ITR-7 is an essential tool for those who prefer to prepare their returns without a constant internet connection.
How to use the Excel Utility for Filing 📂
- Download: Obtain the official Excel utility for ITR-7 from the Income Tax e-filing portal’s “Downloads” section.
- Import Pre-filled Data: It is recommended to download and import the pre-filled JSON file from the e-filing portal into the utility. This minimizes manual data entry and reduces the chances of errors.
- Fill the Form: Complete all the relevant sections and schedules of the ITR-7 form within the Excel utility. The utility will perform validations as you enter data.
- Generate JSON: Once the form is complete and validated, generate the JSON file from the utility.
- Upload and Submit: Log in to the e-filing portal, upload the generated JSON file, and complete the submission process.