Charitable Trust & NGO Compliance
Annual compliance, audit, Section 12A renewal, 80G renewal, and FCRA management for charitable trusts, Section 8 Companies, and registered societies – structured to keep your tax exemption status intact.
By CA Vijay R Singh, FCA
ICAI Membership No. 153926 | FRN 136869W | Practising since 2013
Quick Summary
Charitable trusts and NGOs operate under one of the most scrutinised tax regimes in India. A single missed renewal (12AB every 5 years), a single FCRA reporting gap, a single audit qualification can mean loss of exemption and tax at the maximum marginal rate. This service is the year-round compliance for registered charitable entities.
Strategic Fit: Is this right for you?
Sec 12AB Trust / NGO
Registered charitable entity claiming exemption under Sec 11.
80G Approved
Where donor deduction matters for fundraising.
FCRA Registered
Receiving foreign contribution and needing strict compliance.
CSR Implementing Agency
Recipient of corporate CSR funds.
Pre-Renewal
Trusts approaching 12AB / 80G / FCRA renewal.
Audit-Triggering Income
Trusts with income above audit threshold.
Final Deliverables Checklist
Everything you receive at the end of the engagement.
- Annual statutory audit + audit report
- Form 10B / 10BB audit report (Sec 12A trusts)
- Form 10 (option to defer income under Sec 11(1) Explanation)
- ITR-7 annual filing
- Sec 12AB renewal application (every 5 years)
- 80G renewal application (every 5 years)
- FCRA annual return (Form FC-4)
- FCRA bank account compliance
- CSR receipts / utilisation reporting
UNDERSTANDING THE COMPLIANCE STACK
Sec 12A(1)(b) + Rule 17B Audit
Mandatory audit for trusts seeking Sec 11 / 12 exemption. Form 10B (large trusts) or 10BB. Audit report critical – any qualification can cost exemption.
Sec 12AB + 80G Renewal
Every 5 years. Application 6 months before expiry. Documentation: activities report, financial statements, governance changes.
FCRA 2010
Foreign contribution receipt requires FCRA registration. Annual Form FC-4 by 31 December. Dedicated SBI New Delhi designated account. Strict utilisation rules.
The Engagement Lifecycle
|
Process Name
|
Description
|
Typical Timeline
|
|---|---|---|
Transparent Pricing Structure
Statutory & Third-Party Costs – pass-through, NOT our fees
These are paid directly to government departments, certifying authorities, and banks. They are not VRS professional fees.
- Audit report filing (Form 10B / 10BB): nil government fee
- ITR-7 filing: nil government fee (late fees if applicable)
- Sec 12AB renewal application: nil government fee
- 80G renewal application: nil government fee
- FCRA Form FC-4 filing: nil government fee (additional reporting may carry penalty for delay)
Engagement & Fees
We handle trust and NGO compliance end-to-end — registration under Section 12AB and 80G, FCRA matters, and audit under Section 12A(1)(b) read with Rule 17B — scoped to your organisation during an initial scoping call.
Fees are confirmed per engagement after the scoping call, based on the scope and complexity involved. You receive a clear, written quote before any work begins — no hidden charges.
Quoted per Engagement
The final quote depends on the scope, volume, and statutory complexity of your specific engagement.
Frequently Asked Questions
Sec 12AB renewal - when do I need to apply?
6 months before expiry of current registration. Renewal granted for 5 years. Application via Form 10A on Income-tax portal. Documentation: activities report, audited financials, governance changes.
What happens if 12AB lapses?
Loss of exemption. Income taxed at maximum marginal rate (~30% + S&C). Trust treated as AOP. Corpus may also become taxable. Material consequences – never miss the renewal.
Do we need separate registration under 12AB and 80G?
Yes – two separate registrations. 12AB for trust’s own tax exemption. 80G for donors to claim deduction. Both renewed every 5 years independently.
FCRA - is registration mandatory for any foreign donation?
Yes. Any foreign contribution above any value requires FCRA registration. Without it, receipt is illegal under FCRA 2010. Penalties severe.
Our 80G says 'deduction allowed' but donor's CA says no. Why?
Likely the donor is asking for deduction certificate (Form 10BE) which trust must issue via the income-tax portal. Without Form 10BE, donor cannot claim the deduction.
Can a trust accept CSR funds?
Yes, if registered under Sec 12AB AND specifically registered as CSR implementing agency on the MCA portal. CSR receipts have additional reporting under Companies (CSR Policy) Rules.