NGOs & Trusts
Non-profits are trusted with other people’s money, so their compliance is about showing where it came from and how it was used. Income tax exemption depends on registration, proper application of income and timely audit, and foreign contributions need separate permission.
What we help with
- Income tax registration for exemption and for donors’ deduction certificates, and renewals
- Audit of accounts and filing of the audit report and return
- Annual statements of donations received
- Fund-wise accounting for grants, and guidance on FCRA requirements
Points to watch
- 1Exemption registrations are time-bound and must be renewed before they lapse.
- 2Income has to be applied to the organisation’s objects within the permitted time, or set aside formally.
- 3Donations from foreign sources can only be received after FCRA registration or permission, in the designated bank account.
- 4Donors can claim deductions only if the organisation files its statement of donations.
General points, not advice for your case. Limits and dates change; we confirm what applies to you.
Registrations that make an NGO work
A charitable trust, society or Section 8 company usually needs two income tax registrations: one for its own income to be exempt, and one that lets donors claim a deduction for their donations. Both are time-bound and must be renewed before they lapse. Losing them, even briefly, can have serious tax consequences.
Applying income and keeping funds separate
An NGO is expected to apply its income to its objects within the time allowed, or set it aside formally for a specific purpose. Grants received for a stated purpose should be accounted for separately and used only for that purpose, with records that a donor or auditor can follow.
Foreign contributions
Money from foreign sources, including from foreign individuals and organisations, can only be received after registration or prior permission under the Foreign Contribution (Regulation) Act, and only in the designated bank account. Foreign contributions have their own accounts, returns and restrictions on use.
Annual compliance
- Audit of accounts and filing of the audit report before the return.
- Annual statement of donations, so donors can claim their deductions.
- Board or trustee resolutions for major decisions and use of funds.
Running a business in ngos & trusts?
Call during office hours, or send a WhatsApp message describing what you need.
- No documents needed for the first call
- Hindi or English