ITR Filing FY 2025-26: Excel Utility for ITR-7 Now Live; Key Changes, Filing Dates for Income Tax Return

The Income Tax Department has rolled out the Excel utility for ITR-7 for the assessment year 2025-26, making it available for entities that fall under specific exemption categories. The utility can now be downloaded and used for filing from the official income tax website.

ITR-7 is not a form used by individual taxpayers, rather, it is used by entities such as:

• Charitable and religious trusts

• Political parties

• Universities

• Research institutions

• And certain other organisations that claim exemptions under the Income Tax Act of 1961

This form covers returns filed under sections 139(4A), 139(4B), 139(4C) and 139(4D) which are relevant for trusts, political parties, scientific research associations, colleges, and universities and hence they are the ones required to use it.

What is the return filing timeline for ITR-7 filers?

The tax department has extended the income tax filing deadline for AY 2025-26 this year: September 15, 2025. This date is relevant for ITR-7 filers but only for those who do not require an audit.

For audit cases (including companies), the usual ITR filing deadline is same as every year, i.e., October 31, 2025

These dates apply to income earned in the financial year 2024-25, though the department can extend them if needed.

What’s new in ITR-7 form this year?

The Central Board of Direct Taxes (CBDT) had already notified changes to ITR-7 earlier in May, and the updated Excel utility now reflects those changes.

The key changes taxpayers should know are:

- Capital gains now must be reported separately for periods before and after 23 July 2025. This change is in alignment with the tax amendment notified mid-year.

- A provision has also been added to allow taxpayers to claim capital loss on share buybacks. However, this is only applicable if the related dividend income was declared as ‘income from other sources’ and only applies to transactions from October 1, 2024.

- The new form also contains revision in how deductions under Section 24(b) ( for interest on borrowed capital for house property) are reported.

- There is also a new requirement to specify the TDS section code in Schedule TDS, a minor but critical change for ensuring correct credit.

Why do these changes matter?

Entities that file ITR-7 often must report donations, grants, or public contributions making compliance a sensitive issue for them. With these reporting changes, trusts and other exempt authorities now need to be more careful about making disclosures especially regarding capital gains and share buyback transactions.