Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
The total income tax liability of entities filing returns through ITR-7 rose to INR 1,043 crore in Assessment Year 2025-26, nearly three times the liability recorded five years earlier, according to data presented in Parliament. ITR-7 is used by charitable and religious trusts, political parties, universities, colleges and research institutions, among others. While income from property held under trust for wholly charitable or religious purposes is generally exempt from income tax, the exemption is subject to conditions under the Income Tax Act, 1961. The data showed fluctuations in liability over the five-year period.
The total income tax liability of entities filing income tax returns through Form ITR-7 reached INR 1,043 crore in Assessment Year 2025-26, compared with INR 356 crore in AY 2021-22, according to data presented in Parliament.
The figures were provided by Minister of State for Finance Pankaj Chaudhary in a written reply to the Rajya Sabha. The data covers entities filing ITR-7 over the last five assessment years and shows that their combined tax liability has increased substantially during the period.
ITR-7 is filed by several categories of entities and persons, including charitable or religious trusts, political parties, universities, colleges and research institutions. The form also covers organisations involved in activities such as providing relief to the poor, education, religious activities, medical services and yoga.
According to the data, the combined tax liability stood at INR 356 crore in AY 2021-22. It increased to INR 419 crore in AY 2022-23 before rising sharply to INR 816 crore in AY 2023-24.
The liability subsequently declined to INR 781 crore in AY 2024-25 but increased again to INR 1,043 crore in AY 2025-26. This represents an increase of INR 687 crore over the five-year period.
Under the Income Tax Act, 1961, income derived from property held under trust wholly for charitable or religious purposes is eligible for exemption from income tax, provided the prescribed conditions under the law are fulfilled. The tax treatment therefore depends on the nature of the income and whether the entity meets the applicable requirements for claiming exemption.
The latest figures indicate that the tax liability reported by ITR-7 filers has not followed a uniform year-on-year pattern. After rising considerably in AY 2023-24, the liability fell in the following assessment year before reaching its highest level in the five-year period in AY 2025-26.
The increase also comes against the broader framework governing charitable and religious institutions, where exemptions are linked to compliance with provisions of the Income Tax Act. Entities covered under ITR-7 are required to meet the relevant conditions to retain the tax benefits available to them.
The data presented in Parliament provides a consolidated view of the tax liability associated with ITR-7 filers but does not indicate that the entire income of these entities is taxable. The exemption provisions continue to apply to eligible income where the statutory requirements are satisfied.
Source PTI
Advertisement
Facebook
Whatsapp
