New Delhi: Political parties, charitable trusts, universities and research institutions now need to disclose more information about foreign donations, voluntary contributions, cumulative income and funding applications. The Central Direct Taxation Commission (CBDT) has notified the revised Income Tax Income Tax Income Taxation ITR-7, effective Monday April 1, 2025-1 April 1, 2026. ITR 7 is filled by political parties, charitable trusts and educational, research institutions.The updated form also introduces compliance checks to perform specified violations, which can result in a rejection of exemptions.
This change aims to increase transparency given the past abuse of tax exemptions by some political parties and charities.
The form requires the assessee to report capital gains separately before and after July 23, 2024, as a result of changes in capital gains rules.
This change aims to increase transparency given the past abuse of tax exemptions by some political parties and charities.
The form requires the assessee to report capital gains separately before and after July 23, 2024, as a result of changes in capital gains rules.
The notice said that if dividend income is shown as “income from other sources”, capital losses from stock buybacks can be claimed, and the form also applies to October 1, 2024. The form also captures interest paid on loan capital paid under section 24(b) on property of the house and must report compliance and verification of specific TDS sections. Digital signatures are a must for political parties and entities that require account audits.
