ITR-7 Filers' Tax Liability Reaches ₹1,043 Crore

The total income tax liability of entities filing income tax return ITR-7 has increased to ₹1,043 crore in Assessment Year 2025-26, nearly three times the liability five years ago.

This information was provided to Parliament on Tuesday. ITR-7 is filed by charitable or religious trusts, political parties, universities, colleges, and research institutions.

According to the Income Tax Act, 1961, income derived from property held under trust for charitable or religious purposes is exempt from income tax, subject to certain conditions.

Minister of State for Finance Pankaj Chaudhary provided details of the income tax liability of entities filing ITR-7 over the last five years.

These entities engage in activities such as providing relief to the poor, education, religion, medical services, yoga, and other charitable purposes.

The total tax liability of ITR-7 filers increased from ₹356 crore in AY 2021-22 to ₹1,043 crore in AY 2025-26.

In AY 2022-23, the liability was ₹419 crore, ₹816 crore in AY 2023-24, and ₹781 crore in AY 2024-25, according to data presented in Parliament.

This significant increase in tax liability may indicate a rise in the income of these entities or a change in their tax exemption status.

The data provides insight into the financial activities of charitable and religious trusts, political parties, and educational institutions in India.

It also highlights the importance of tax compliance and the need for these entities to ensure they meet the conditions for tax exemption.

The increase in tax liability may have implications for the funding and operations of these entities, potentially affecting their ability to provide services and support to their beneficiaries.

Overall, the data suggests a growing trend in the income and tax liability of ITR-7 filers, which may warrant further examination and analysis to understand the underlying factors and implications.