Income Tax Return Support

• Due Date: 31st October each year (for NGOs requiring audit) — no extension for 12A NGOs in most years
• Mandatory Pre-filing: Form 10B (statutory audit report by CA) must be filed on IT portal before ITR-7
• Form 10BD: Statement of donations received — must be filed by 31st May (before ITR-7) for donors to claim 80G deductions
• Section 11 Exemption Schedule: Detailed Schedule IE-1 reporting income and application under Section 11
• Accumulation Claims: Form 10 or Form 10A filing for accumulation claims under Section 11(2)
• Related Party Disclosure: Section 13 compliance — all transactions with founders, trustees, or their relatives must be disclosed
• Corpus Fund Reporting: Segregation of corpus and non-corpus receipts
• Foreign Contribution Reporting: FCRA receipts must be reported separately in ITR-7

• Schedule IE-1 to IE-4: Income computation for trusts and charitable institutions — classifying income by source, computing exemptions, and identifying taxable surpluses
• Schedule AI (Aggregate of Income): Consolidation of all income before exemption claims
• Schedule VC (Voluntary Contributions): Reporting of all donations received — whether corpus or non-corpus
• Schedule HP, CG, OS: Property income, capital gains, and other source income that may be partly taxable even for 12A NGOs
• Part C — Computation of Income Tax: Tax payable on non-exempt income (e.g., business income unrelated to charitable objects)

• Misclassifying corpus donations as revenue receipts — inflates income and reduces apparent application ratio
• Not filing Form 10 before the ITR-7 due date — accumulation claim disallowed
• Form 10B data inconsistent with ITR-7 data — automatic scrutiny flag
• Section 13 violation — transactions with founders/relatives not at market value
• Failing to report FCRA income separately — cross-verification failure with FC-4 data
• Showing capital expenditure as revenue application — overstates application ratio
• Income applied outside India — disallowed under Section 11(1)(c) without specific approval

Q: Can an NGO use the simple ITR-1 or ITR-4 if its income is low?
No. Any organisation claiming exemption under Section 11 or 10(23C) must mandatorily file ITR-7 regardless of income level. ITR-1, 2, 3, 4, 5, or 6 are not applicable for 12A-registered organisations.

Q: What if the NGO spent more than its income during the year (deficit)?
A deficit (expenditure exceeding income) is not a problem in itself — it shows the organisation spent accumulated funds. The ITR-7 must correctly report the opening balance, income, expenditure, and closing balance to demonstrate that funds were applied for charitable purposes. MFiling ensures the deficit is correctly presented to avoid any adverse scrutiny.