NGO/Trust Complaince

NGO/Trust Complainces

✅ NGO / Trust Compliances

Running an NGO or Trust is noble work — but it comes with important legal responsibilities.
These compliances make sure your organisation remains transparent, registered, and eligible for donations & government benefits.

1️⃣ Basic Setup Compliances

Before starting work, every NGO/Trust must complete these:

✔ Trust Deed Registration

✔ Apply PAN for the Trust

The Trust needs its own PAN card, separate from trustees.

✔ Open a Bank Account

All donations & expenses should come only through the Trust bank account

2️⃣ Annual Income Tax Compliances

✔ Income Tax Return (ITR-7)

Every NGO must file ITR-7 every year, even if income is zero.

Due Date:

• 31 July – normal
• 31 October – if audit applies

3️⃣ Audit Requirements

Audit becomes compulsory when:

✔ Income exceeds ₹2,50,000, OR

✔ The NGO has 12A registration and wants income tax exemption.

Audit Report is filed in:

• Form 10B or
• Form 10BB (for certain institutions)

4️⃣ Mandatory Registrations for Tax Benefits

If an NGO wants tax exemption and donor tax benefits, these are essential:

✔ 12A Registration

Allows NGO income to be tax-free.

✔ 80G Registration

Allows donors to claim 50% tax deduction on donation.
This boosts donations significantly.

Both registrations must be renewed every 5 years.

5️⃣ CSR Eligibility (Optional)

To receive funds from companies under CSR:

✔ NGO must be registered on MCA CSR Portal

✔ Must spend funds only on approved activities

✔ Submit CSR Impact reports to donors

6️⃣ FCRA Registration (For Foreign Donations)

If NGO wants to receive foreign funds, it MUST:

✔ Apply for FCRA registration

✔ Maintain separate bank account for foreign funds

✔ File FCRA Annual Return – Form FC-4

✔ File Quarterly foreign contribution intimation

⚠ Without FCRA, no foreign donation is allowed.

7️⃣ GST Compliances (If Applicable)

NGOs usually don’t need GST unless:

✔ They sell goods/services,

✔ They run schools, training, skill centres, etc.

If GST applies → registration + monthly/quarterly GST returns.

8️⃣ Accounting & Documentation

NGO must maintain:

✔ Cash book

✔ Ledger

✔ Donation registers

✔ Bills & invoices

✔ Asset register

✔ Meeting minutes of trustees

✔ Receipts for donations

Good records = smoother audits + better credibility.

9️⃣ TDS Compliances

If the NGO pays:

✔ Salary

✔ Professional fees

✔ Rent

✔ Contractor payments

…it must deduct TDS, pay every month, and file quarterly TDS returns.

🔟 Annual Activity & Governance Compliances

✔ Conduct at least one trustee meeting every year

Maintain minutes.

✔ Publish / maintain annual activity report

Good for donors and CSR partners.

✔ File Annual Return with Charity Commissioner

(Required in some states like Maharashtra & Gujarat).

⭐ Super Simple Summary

Every NGO must:

1️⃣ File ITR-7

2️⃣ Conduct annual audit (if applicable)

3️⃣ Renew 12A & 80G every 5 years

4️⃣ File FCRA return if foreign funds received

5️⃣ Maintain proper books & donation proofs

6️⃣ Deduct TDS & file returns

7️⃣ Follow GST only if business activity exists

Saturday - Thursday : 8:30 am - 10:45 pm

Call for an appointment