NGO & Trust Audit - Form 10B / Form 10BB Filing

It is a mandatory audit of a registered trust, NGO, or Section 8 company's accounts by a chartered accountant, required once the entity's total income - before claiming exemption under Sections 11 and 12 - exceeds the basic exemption limit in a financial year. The audit report is filed as Form 10B or Form 10BB before the income tax return.

Yes. These are two common names for the same statutory requirement under Section 12A(1)(b) of the Income Tax Act. Whether your entity is structured as a trust, a registered society, or a Section 8 company, the same audit and filing obligation applies once your income crosses the threshold.

Both report the same 12A(1)(b) audit. Form 10B is generally used by larger or more complex trusts/NGOs - those with business income, foreign contributions, or higher income levels - and requires more detailed reporting. Form 10BB is used by smaller entities below the prescribed income threshold, with a comparatively simpler format.

No. The audit is only mandatory in a financial year where the entity's total income, computed before claiming exemption, exceeds the basic exemption limit. If your income stays below that limit, the audit is not compulsory, though maintaining audited accounts voluntarily is still useful for donor reporting.

Only a practising Chartered Accountant can conduct a Section 12A(1)(b) audit and sign Form 10B or Form 10BB - it cannot be self-certified by the trustees or done by an unregistered accountant.

No. A Section 8 company may separately be subject to a statutory audit under the Companies Act, 2013, in addition to this income-tax audit under Section 12A(1)(b). The two serve different purposes and are governed by different laws, though the same CA firm can often handle both.

The audit report (Form 10B or 10BB) must be furnished electronically before you file your ITR-7 income tax return for the year - the audit is a precondition to filing a valid return claiming exemption, not something done afterward.

Missing or delayed filing of the audit report can result in the Section 11/12 exemption being denied for that year, meaning the entity's income could be assessed and taxed at normal rates - a materially worse outcome than the audit's cost.

The CA verifies your books of accounts, confirms income was applied towards charitable or religious objects, checks that any accumulation under Section 11(2) was properly earmarked and invested, verifies investments comply with Section 11(5), and confirms no income or property was used to benefit trustees, founders, or related parties in breach of Section 13.

Only if the entity's total income before exemption crosses the basic exemption limit in that first year. A newly registered trust with modest income in year one may not need the audit yet, but should track income levels through the year to know when it becomes applicable.

The audit (Form 10B/10BB) certifies your accounts and application of income for the year. The income tax return (ITR-7) is the separate return you file afterward, using figures from the audited financials. We offer both as separate services, or bundled together - see our Trust/NGO Tax Filing service for the return itself.

Yes. Any entity holding valid registration under Section 12A or 12AB - whether structured as a trust, a registered society, or a Section 8 company - is subject to the same Section 12A(1)(b) audit requirement once its income crosses the threshold.

The audit becomes mandatory once total income, computed before claiming exemption under Sections 11 and 12, exceeds the basic exemption limit applicable for the year. The exact income band that separates Form 10B from Form 10BB is set by government notification and can be revised, so we confirm the current applicable figures at the time of your engagement.

We support the Section 12A(1)(b) income-tax audit for entities that also hold FCRA registration, including reconciling foreign contribution figures against your books. A separate FCRA-specific audit and annual return (Form FC-4) is a distinct filing, which we can quote for separately.

Yes - our Audit + ITR-7 Filing Bundle covers the applicable audit form and the subsequent ITR-7 return in one coordinated engagement, so both deadlines are tracked together and nothing is filed at the last minute.

If total income before exemption stays under the basic exemption limit for the financial year, the Section 12A(1)(b) audit is not mandatory. You would still typically file an ITR-7 return, but without the audit report requirement attached.