Trust / NGO ITR Filing (ITR-7)
Specialized tax return filing (ITR-7) for Trusts, Societies, and Section 8 Companies claiming exemptions under Section 12A/10(23C).
Overview
Any organization claiming tax exemption as a charitable/religious Trust, Society, or Section 8 Company (having 12A registration) must mandaterally file its annual income tax return using Form ITR-7. Filing this return is highly complex because the NGO must prove that it has "applied" (spent) at least 85% of its gross receipts towards its charitable objectives during the year. If the NGO fails to spend 85%, or fails to file specific accumulation forms (Form 9A/Form 10) before the deadline, the unspent amount becomes heavily taxable at maximum marginal rates.
What is Included in Our Package
Detailed compliance and filing scope managed by JRC corporate experts.
Documents Required to Start
Upload digital files during onboarding. No physical submissions needed.
NGO Registrations
- Copy of Trust Deed / MoA
- PAN Card of the NGO
- 12A and 80G Registration Certificates
- FCRA Certificate (if receiving foreign funds)
Financial & Audit Data
- Audited Balance Sheet and Income & Expenditure Statement
- Audit Report (Form 10B or 10BB) prepared by the CA
- Details of massive donations received (> Rs. 50,000)
Step-by-Step Filing Timeline
Our step-by-step advisory workflow.
Step 1: Audit & Expense Verification
Our CA conducts a statutory audit to verify that all expenses incurred were strictly for the charitable objects mentioned in the Trust Deed.
Step 2: 85% Application Check
We calculate your gross receipts. If the charitable expenditure is less than 85%, we prepare Form 9A or Form 10 to legally accumulate the shortfall.
Step 3: Audit Report Filing
The CA uploads the mandatory Audit Report (Form 10B/10BB) on the IT portal one month prior to the ITR filing deadline.
Step 4: ITR-7 Submission
We populate the extensive schedules of ITR-7, verifying the names of trustees and corpus details, and sign it using the authorized trustee’s DSC.
Key Advantages of Expert NGO Tax Filing
A single mistake in ITR-7 can trigger the cancellation of your 12A exemption.
Maintain Tax Exemption
Accurate reporting of charitable expenditures ensures the Income Tax department does not revoke your precious 12A tax-exempt status.
Legal Accumulation
If you could not spend 85% of the donations, our CAs will file Form 10 to legally set aside (accumulate) those funds for up to 5 years without paying tax.
Corpus Donation Reporting
Properly categorize specific grants as "Corpus Donations" in the return so they are not treated as regular taxable income.
Frequently Asked Questions
Helpful answers to common regulatory inquiries.
What happens if we file ITR-7 late?▼
Filing ITR-7 after the deadline is disastrous for an NGO. The Income Tax Act states that if the return is filed late, the NGO loses its right to claim the 12A exemption for that year, rendering all donations taxable.
Is an audit mandatory for all NGOs?▼
Under the new rules, an audit is mandatory if the total income of the NGO (before giving effect to exemptions) exceeds the basic exemption limit (Rs. 2.5 Lakhs).
Can cash donations be accepted?▼
NGOs are strictly prohibited from receiving cash donations exceeding Rs. 2,000 per person. Accepting larger cash donations attracts a 100% penalty under Section 269ST.
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