Under Section 139(4A) of the Income Tax Act, 1961, charitable and religious trusts/institutions must file an Income Tax Return (ITR-7) if their income (before exemptions under Sections 11 & 12) exceeds the basic exemption limit. This ensures transparency even when income is tax-exempt.
1. Who Must File?
- Charitable/Religious Trustsreceiving:
- Income from property held under trust (wholly/partly for charitable/religious purposes).
- Voluntary contributions (unless specifically for corpus).
- Mandatory Filing: Applies if total income before exemptionsexceeds ₹2.5 lakh (FY 2024-25).
2. Due Dates
| SCENARIO | DUE DATE |
| Non-audit cases | 15 September 2025 |
| Audit-required cases (income > ₹2.5L before exemptions) | 31 October 2025. |
3. Form & Compliance
- ITR-7: Must include:
- Schedule FA(foreign assets, if any).
- Schedule VC(voluntary contributions).
- Form 10B(audit report for exemptions).
- E-filing with Digital Signature: Mandatory for audited trusts.
Exemptions & Conditions
- Exemption under Sections 11 & 12: Available only if:
- 85% of incomeis applied to charitable purposes.
- Registration under Section 12ABis obtained.
- Books auditedif income > ₹2.5L.
- Penalty for Non-Compliance:
- ₹100/day for late filing (Section 272A).
- Exemption denied if return is not filed
