Trust / NGO Tax Filing

Overview

Trusts, NGOs, political parties, research associations, educational institutions, hospitals, and entities claiming exemption under Sections 10(23C), 11, 12, or 13 of the Income Tax Act must file annual returns in ITR-7. Despite income tax exemptions, filing is mandatory to maintain 12A and 80G registration, report receipts and application of income, declare any accumulation under Section 11(2), and confirm compliance with registration conditions.

Form 10B (or Form 10BB for specified entities) — the audit report by a Chartered Accountant — must be uploaded along with ITR-7 for trusts with income exceeding Rs.2.5 lakhs. Non-filing of ITR-7 can lead to cancellation of 12A registration by the Commissioner of Income Tax — which would make all income taxable retrospectively. MFiling coordinates ITR-7 preparation, Form 10B audit, and electronic filing for all NGO and trust clients.

Due date: October 31. MFiling professional charges: from Rs.3,999 (ITR-7 + Form 10B).

Key Benefits

Maintains 12A / 80G Registration Status

Annual ITR-7 filing is a prerequisite for maintaining tax-exempt status — non-filing risks cancellation.

Income Application Schedule Prepared Correctly

Schedule I (application of income) correctly categorised — confirms at least 85% of income is applied to objectives.

Section 11(2) Accumulation Declaration

Amounts accumulated beyond current year application properly declared and invested in specified modes.

Form 10B / 10BB CA Audit Coordinated

MFiling coordinates the mandatory CA audit certificate — uploaded digitally before ITR-7 submission.

FCRA Compliance Cross-Check

Foreign contribution receipts verified for proper FCRA compliance and separate account maintenance.

Documents Required

Audited Financial Statements with Receipts & Payments Account

12A and 80G Registration Certificates

Income Application Details — Programme-wise Expenditure Records

Details of Accumulation under Section 11(2) — Purpose and Investment Mode

Corpus Fund Investment Portfolio (specified investments under Section 11(5))

Form 10B / 10BB — Chartered Accountant Audit Certificate

FCRA Annual Return Details (if applicable)

How it Works

Compile Annual Financials and Activity Report (Week 1)

Review audited receipts & payments, income & expenditure statement, and balance sheet.

Prepare Income Application Schedule (Week 1–2)

Categorise all expenditure under charitable objectives — verify at least 85% of income applied.

Compute Section 11(2) Accumulation (if any) (Week 2)

Identify income accumulated beyond 85% application — verify it is invested in specified modes.

Coordinate Form 10B / 10BB CA Audit (Week 2–3)

CA prepares and digitally signs Form 10B/10BB audit certificate — uploaded to income tax portal.

Verify 12A / 80G Registration Status (Week 1)

Confirm registration is valid and not lapsed — check if revalidation is required.

File ITR-7 on Income Tax Portal (Before October 31)

Submit all schedules using DSC of the principal officer — by October 31.

Retain Records for CIT Inspection (Ongoing)

Maintain 6 years of ITR-7 records, financial statements, and Form 10B reports for potential CIT scrutiny.

Frequently Asked Questions

What percentage of income must an NGO spend to maintain 12A exemption?

Under Section 11, a trust or NGO must apply at least 85% of its income towards its charitable or religious objects during the financial year to claim full income tax exemption. The remaining 15% may be accumulated for future use. If income applied is below 85%, the shortfall becomes taxable. For income specifically accumulated under Section 11(2) for a specific purpose (with a declaration in ITR-7), an additional 5-year accumulation window is available.

What is the consequence of not filing ITR-7 for an NGO?

Non-filing of ITR-7 is a serious compliance failure for NGOs. The Commissioner of Income Tax can cancel the 12A registration under the Finance Act 2020 framework — which would make the NGO's entire income taxable from the date of cancellation. Additionally, late filing attracts a Rs.1,000 to Rs.5,000 late fee under Section 234F. Cancelled 12A also disqualifies the NGO from 80G registration and CSR fund eligibility.

Service Price

₹3,999

Starting price · GST extra

Call Expert WhatsApp Us

Maintains 12A / 80G Registration Status

Annual ITR-7 filing is a prerequisite for maintaining tax-exempt status — non-filing risks cancellation.

Income Application Schedule Prepared Correctly

Schedule I (application of income) correctly categorised — confirms at least 85% of income is applied to objectives.

Section 11(2) Accumulation Declaration

Amounts accumulated beyond current year application properly declared and invested in specified modes.

Form 10B / 10BB CA Audit Coordinated

MFiling coordinates the mandatory CA audit certificate — uploaded digitally before ITR-7 submission.

FCRA Compliance Cross-Check

Foreign contribution receipts verified for proper FCRA compliance and separate account maintenance.

Trust / NGO Tax Filing

Overview

Key Benefits

Documents Required

How it Works

Frequently Asked Questions

Related Services

Related Articles

Ready to Start or Grow Your Business?

Trust / NGO Tax Filing

Overview

Key Benefits

Documents Required

How it Works

Frequently Asked Questions

Related Services

Income Tax E-Filing

Business ITR Filing

Partnership Firm / LLP ITR

Company ITR Filing

Related Articles

Annual Compliance Checklist for Private Limited Companies in 2025

GST Registration: Who Needs It and How to Apply?

How to Register a Private Limited Company in India (2025 Guide)

Ready to Start or Grow Your Business?