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May 13, 2025
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CBDT calls for more disclosure on foreign donations
Political parties, charitable trusts, universities and research bodies now require to disclose more information on income from foreign contributions, voluntary donations, accumulated income, and application of funds. The Central Board of Direct Taxes (CBDT) notified a revised Income-tax Return Form ITR-7, Monday, effective April 1, 2025, for assessment year 2025-26. The ITR 7 is filled by political parties, charitable trusts and educational, research institutions.
The updated form also introduced compliance checks for specified violations that could lead to denial of exemption.
The changes aim to improve transparency, given the abuse of tax exemption in the past by some political parties and charitable institutions.
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