Under Section 139(4C) of the Income Tax Act, 1961, specific categories of non-profit entities must file an Income Tax Return (ITR-7) if their income (before claiming exemptions) exceeds the basic threshold. This ensures compliance while allowing tax benefits under relevant sections.
1. Who Must File?
The following entities must file ITR-7 if their income (before exemptions) exceeds the basic exemption limit (₹2.5 lakh for FY 2024-25):
- Scientific Research Associations(exempt under Section 10(21)).
- News Agencies(exempt under Section 10(22B)).
- Sports Institutions(exempt under Section 10(23)).
- Funds/Trusts for Charitable Purposes(exempt under Section 10(23C)(iii)/(iv)/(v)/(vi)/(via)).
- Universities/Educational Institutions(exempt under Section 10(23C)(iiiad)/(vi)).
- Medical Institutions/Hospitals(exempt under Section 10(23C)(via)/(viia)).
2. Due Dates
| CATEGORY | DUE DATE |
| Non-Audit Cases | 15 September 2025 |
| Audit-Required Cases (Income > ₹2.5L before exemptions) | 31 October 2025 |
3. Key Compliance Requirements
- Form ITR-7: Must be filed with:
- Audit Report (Form 10B/10BB)(if applicable).
- Details of Income & Expenditure(Balance Sheet, P&L Statement).
- Schedule FA(if holding foreign assets).
- Exemption Conditions:
- 85% of income must be applied to stated objectives.
- No income diversion for non-charitable purposes.
- Proper books of accounts maintained.
4. Penalties for Non-Compliance
- Late Filing Fee: ₹100/day under Section 234F(max ₹5,000).
- Loss of Exemption: Entire income becomes taxable if return is not filed.
- Prosecution Risk: For false statements (Section 277).
