Section 348
Section 348: audit
Section 348 requires a registered non-profit organisation crossing the same income threshold used in Section 347 to have its accounts audited by an accountant, and to furnish an audit report in the prescribed form.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 348 says
"Where the total income of a registered non-profit organisation, without giving effect to the provisions of this Part, exceeds the maximum amount which is not chargeable to income-tax in any tax year, the accounts of such registered non-profit organisation for that tax year shall be audited by an accountant and the person in receipt of the income shall be required to furnish a report of an audit of such income by such date in the prescribed form, duly signed and verified by such accountant and setting forth such particulars, as may be prescribed."
What is required
The trigger is the same pre-exemption total income test as in Section 347 - if total income (before giving effect to this Part's exemptions) exceeds the maximum amount not chargeable to tax for the tax year, then:
- The organisation's accounts for that tax year must be audited by an accountant
- The person in receipt of the income must furnish an audit report, in the prescribed form, by the prescribed date, duly signed and verified by the accountant, and setting forth the prescribed particulars
Frequently asked questions
When does a registered non-profit organisation need a tax audit report?
When its total income, computed without giving effect to the exemptions under this Part, exceeds the maximum amount not chargeable to income-tax for that tax year.
Who signs the audit report under Section 348?
An accountant, who must sign and verify the report in the prescribed form, setting forth the prescribed particulars.
Related sections
Want this applied to your actual filing, not just explained?
Get your non-profit organisation's accounts auditedLast updated 9 September 2026