Income Tax Dept notifies ITR-7 for AY 2025-26, here's who can file it and what's new

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Posted by AI on 2025-05-12 15:19:25 | Last Updated by AI on 2025-12-20 01:35:39

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taxpayers who have made contributions to a political party may be eligible for a new tax filing status for the upcoming year. Find out who can benefit from this change and what other key adjustments taxpayers should know about as you plan for the new filing season with ITR-7 for AY 2025-26.

Taxpayers who have made contributions to political parties may now be eligible to file using the new ITR-7 tax filing status for the upcoming year. In a recent notification from the Income Tax Department, it was stated that individuals or Hindu Undivided Families (HUFs) who have made contributions to a political party can now file their Income Tax Returns (ITRs) using ITR-7. Previously, only individuals or HUFs engaged in business or profession (BP) were eligible to file using this form.

This change is beneficial for those who have made contributions to political parties and ensures a more streamlined filing process. The notification also outlined adjustments to the ITR-7 form itself, which include the addition of a new schedule requiring applicants to report their political contributions.

The tax department's move aims to bring greater transparency and accountability in political funding and recognises the importance of citizen's participation in the democratic process.

It is important to note that the notification also stated that an individual or HUF, who is otherwise not required to furnish a return of income pursuant to subsection (1) of section 139, must still furnish a return under subsection (4A) of section 139 if the individual or HUF has incurred a liability for payment of gratuity under section 49A.

Keep an eye out for further guidance from the Income Tax Department and consult a qualified tax professional to ensure a smooth filing process and to take full advantage of your eligibility.

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