Rule 188: Audit report of a registered non-profit organisation in Form 112
Rule 188 prescribes the form and timing of the audit report required under section 348. The report of audit of the accounts must be furnished in Form No. 112, one month prior to the due date for furnishing the return of income under section 263(1).
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Rule 188 - Report of audit in case of registered non-profit organisations under section 348
The report of the audit of the accounts, required to be furnished under section 348, shall be furnished in Form No. 112, one month prior to the due date of furnishing the return of income under section 263(1).
Rule breakdown
When an audit report is required
Section 348 requires the accounts of a registered non-profit organisation to be audited by an accountant where its total income, without giving effect to that Part, exceeds the maximum amount not chargeable to income-tax in the tax year. The report must be signed and verified by the accountant.
Rule 188 does not itself create the audit obligation; it supplies the form and the timing for a report that section 348 requires.
Form No. 112 and the deadline
The report must be furnished in Form No. 112. The deadline is linked to the return: it is one month prior to the due date of furnishing the return of income under section 263(1).
Identify the due date that applies to the organisation under section 263(1) for the tax year and count back one month. The rule does not state a fixed calendar date, so check the current due date and any official extension before planning the audit timetable.
Steps for the organisation
Close the books maintained under Rule 187, provide them to the accountant, obtain the audit report in Form No. 112, and ensure it is furnished before the one-month-prior date.
Keep the furnished Form No. 112, the acknowledgement and the audited accounts with the return records, and reconcile the figures used in the return with the audited figures.
Hypothetical example
Hypothetical: if the section 263(1) due date applicable to an organisation for a tax year were 31 October, Rule 188 would require Form No. 112 to be furnished one month earlier, that is by 30 September. The dates are assumed only to show the calculation; use the actual applicable due date.
Key takeaways
Form No. 112
The prescribed form for the section 348 audit report.
One month before the return due date
The deadline is tied to the section 263(1) due date.
Obligation comes from section 348
Rule 188 prescribes form and timing only.
Practical checklist
- Confirm whether the section 348 threshold is crossed.
- Identify the applicable section 263(1) due date and count back one month.
- Plan the audit so Form No. 112 is ready before that date.
- Retain the furnished report and acknowledgement.
Avoid
- Do not treat the return due date as the audit report due date.
FAQs
Which form is used for the audit report of a registered non-profit organisation?
Form No. 112, under Rule 188.
When must Form No. 112 be furnished?
One month prior to the due date of furnishing the return of income under section 263(1).
Does every registered non-profit organisation need the audit?
Section 348 requires the audit where total income, without giving effect to that Part, exceeds the maximum amount not chargeable to income-tax in the tax year.
Glossary
- Form No. 112
- The form in which the audit report under section 348 is furnished.
- Section 263(1) due date
- The return-filing due date from which the Rule 188 deadline is counted back by one month.