Annual Income Tax Compliance

NGOs registered under Section 12AB must file their annual income tax return using Form ITR-7. Filing ensures that the NGO retains its tax exemption and remains in good standing with the Income Tax Department.

• File ITR-7 if the gross receipts exceed the basic exemption limit
  
• Ensure proper maintenance of income and expenditure records
  
• Submit audit reports if the receipts exceed the prescribed threshold
  
• Donations received must be recorded and linked to PAN wherever applicable
  
• Avoid application of funds for non-charitable purposes to retain exemption

Renewal and Reporting under 12AB and 80G

NGOs registered under Section 12AB and 80G must renew their registration every five years. Renewal is essential for continued eligibility for tax exemption and donor tax relief.

• Apply for renewal six months before the expiry of registration
  
• Ensure the objectives remain charitable and unchanged
  
• Update Form 10A or 10AB as applicable based on registration status
  
• Submit activity reports to support the continuation of benefits
  
• Maintain separate books if business-related income exists

Statutory Filings for Legal Structure

NGOs must adhere to different filing requirements based on whether they are registered as a trust, society, or Section 8 company. These filings help in fulfilling obligations under their governing acts.

• Section 8 companies must file MGT-7 and AOC-4 annually with the MCA
  
• Societies must file annual meeting minutes and committee member lists
  
• Trusts must comply with respective state-level public trust filings
  
• All NGOs should submit updated governing body details annually
  
• Submit changes in objectives, office address, or trustees to the registrar

Accounting and Audit Requirements

Proper accounting and annual audit form the foundation of financial discipline in NGOs. It provides transparency to stakeholders and is mandatory for regulatory filings.

• Maintain books of accounts showing all receipts and payments
  
• Audit by a Chartered Accountant is mandatory if turnover exceeds the limit
  
• Prepare income and expenditure statement, balance sheet, and receipts book
  
• Preserve vouchers and documentation supporting all entries
  
• Books must be kept for a minimum of eight financial years

FCRA Annual Compliance (if applicable)

NGOs receiving foreign donations must adhere to annual filing norms under the Foreign Contribution Regulation Act. Compliance ensures continuity of FCRA registration and permission.

• File FC-4 return annually by December 31 for each financial year
  
• Submit bank statements and utilization details for foreign contributions
  
• Appoint a Chartered Accountant to certify FCRA return
  
• Maintain separate accounting and bank accounts for FCRA funds
  
• Renew FCRA registration every five years through online application

Donor Reporting and Documentation

Transparency in donor communications and proper documentation increases credibility. NGOs must issue appropriate receipts and file returns where applicable to show fund usage.

• File Form 10BD annually to report all donations received
  
• Issue donation certificates in Form 10BE to donors
  
• Maintain register of donor details including name, PAN, and donation amount
  
• Clearly segregate corpus and project-specific donations in records
  
• Provide utilization certificates to major donors and corporate sponsors

Other Registrations and Operational Updates

NGOs may need to comply with additional annual requirements depending on their operational scope. Keeping these registrations updated avoids interruptions in services or legal hurdles.

• Renew professional tax, GST, or trade licenses as applicable
  
• Update CSR registration number on MCA portal if working on CSR projects
  
• Inform authorities about changes in bank accounts or authorized signatories
  
• Ensure digital signature certificates (DSCs) are valid for filing returns
  
• Maintain data protection and beneficiary records as per new compliance norms