ITR-7 is an Income Tax Return form used by entities such as charitable or religious trusts, political parties, institutions, universities, and other organizations claiming exemptions under various sections of the Income Tax Act, 1961, including Sections 11, 12, 13, 10(23C), and 139(4A). Filing ITR-7 ensures compliance with statutory requirements, enables disclosure of income, donations, and expenditures, and helps maintain the validity of tax-exempt status. Entities must report income from donations, property, investments, and other sources, and provide details of claims for exemption. Audited financial statements must be attached if applicable. The return must be filed electronically through the Income Tax Department portal, often using a digital signature certificate (DSC) of the authorized signatory. Timely and accurate filing prevents penalties, ensures proper record-keeping, and maintains transparency for donors and regulators. Professional guidance is recommended for preparation of accounts, reconciliation of income and donations, computation of exempt and taxable portions, and accurate filing of ITR-7 to avoid notices or compliance issues.